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(Sharecast News) - Shares in Energean jumped on Wednesday after the Israel-focused oil and gas producer held guidance and reported a recovery in production after a 41-day suspension due to the US-Israeli war on Iran.
The company said adjusted earnings before interest, tax, depreciation, amortisation and exploration expenses fell 5% to $478m in the six months to June 30 and reiterated guidance for the full year. However, it cut exploration expenditure forecasts to $5-10m from $10-15m.
Profit after tax jumped 45% to $160m on a lower effective tax rate driven by the recognition of previously unrecognised deferred tax assets in Italy. Shares in the company were up 8%.
Production in the first half was hit by the shutdown in Israel and lower Italian output, leaving average workinginterest production at 124 Kboe/d and sales volumes down yearonyear.
Energean said output has since rebounded strongly, with eightmonth production averaging 135 Kboe/d and August standalone rates topping 180 Kboe/d, keeping the group on track for fullyear guidance.
Revenue from production eased to $743m, though higher realised liquids pricing lifted liquids revenue 14% to $267m.
Reporting by Frank Prenesti for Sharecast.com
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