Ithaca Energy (LSE:ITH) reported strong operational and financial results for 2025, with average production increasing to 119,000 barrels of oil equivalent per day (kboe/d) and exiting the year at approximately 148 kboe/d. The improved output was supported by new wells brought online at the Cygnus, Seagull and J Area fields, alongside continued progress in safety performance and emissions management.
The company confirmed a substantial resource base, reporting more than 350 million barrels of oil equivalent in 2P reserves and around 300 million barrels of oil equivalent in 2C contingent resources, reinforcing the long-term development potential of its UK Continental Shelf portfolio.
Financial performance also strengthened, with adjusted preliminary EBITDAX rising to $2.0 billion. Unit operating costs declined to $19 per barrel of oil equivalent, supported by operational efficiencies and a well-structured hedging programme. Ithaca maintained a strong balance sheet, reporting low leverage of 0.56 times and available liquidity of approximately $1.5 billion.
Ithaca reaffirmed its commitment to shareholder returns by maintaining its full-year 2025 dividend target of $500 million, having distributed the full amount during the year. The company also continued to advance its consolidation strategy within the UK Continental Shelf through targeted acquisitions and disciplined capital investment.
Strategically, Ithaca progressed development planning for its flagship Rosebank project and wider West of Shetland growth initiatives. Management believes these projects will support future production expansion while strengthening the company’s role as a major independent producer and consolidator within the North Sea energy sector.
Ithaca Energy’s outlook reflects strong operational efficiency and solid cash generation, although profitability pressures remain a consideration. Technical trading indicators suggest some bearish momentum in the near term. However, the company’s relatively high dividend yield provides valuation support, even as negative earnings metrics remain a factor for investors.
More about Ithaca Energy PLC
Ithaca Energy plc is a leading UK-based independent exploration and production company focused on oil and gas assets across the UK Continental Shelf. The company has expanded rapidly through organic development and strategic acquisitions, including its combination with Eni UK, and is now one of the largest independent producers in the basin with one of the region’s largest resource bases. Ithaca holds interests in several major UK fields and key pre-development projects, positioning it as an important contributor to UK energy security while pursuing emissions reduction targets aligned with the North Sea Transition Deal.
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