Energean PLC on Thursday said profit and revenue rose in its first half alongside surging production, but adjusted its guidance due to start-up problems.

Shares in Energean were up 2.9% at 1,149.00 pence on Thursday in London.

The London-based hydrocarbon exploration and production company, which focuses on natural gas, has operations in Israel, Egypt, Italy, Greece, Croatia and the UK.

Energean said production for the first half of 2023 was 105,900 barrels of oil equivalent per day of which 82% was natural gas. This was ‘near triple’ the 35,400 barrels achieved the prior year, of which gas made up 73%.

Energean said the surge in production was primarily due to production commencing at the Karish offshore gas field in Israel, which contributed 70,100 boed. Energean Israel Ltd delivered $347.7 million in revenue, up from zero the year before, and swung to a $88.5 million pretax profit from a $7.6 million loss.

Overall, Energean said pretax profit increased 23% to $135.0 million from $109.8 million. Revenue rose by 73% to $587.6 million from $339.0 million, primarily due to sales from Israel which contributed 59% of the total.

Energean declared a dividend of 30 US cents per share for the second quarter, up from no dividend at the same time last year.

Looking ahead, Energean reduced its production guidance for 2023 to between 120,000 and 130,000 boed, from 125,000 to 40,000 boed. It said this reflected start-up issues at the Karish field ‘that have now been substantially overcome.’

Energean added that it is ‘on track’ to deliver 200,000 boed production in the second half of 2024, as well as $2.5 billion in revenue.

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