Energean Plc (LSE:ENOG) reported a net loss of $258 million for 2025, reversing a profit of $127 million the previous year, and said it has withdrawn production guidance for Israel after authorities ordered its key offshore facility to halt operations. The move has left the London-listed gas producer without clarity over nearly three-quarters of its total output.
Adjusted EBITDAX declined 4% to $1.12 billion as revenue slipped to $1.77 billion. Operating cash flow, however, rose slightly to $1.14 billion from $1.12 billion in 2024. The company confirmed it will maintain its annual dividend at $1.20 per share.
Israel’s Ministry of Energy and Infrastructure directed Energean to temporarily stop production at the Power FPSO on Feb. 28 following heightened geopolitical tensions in the region. As of the results announcement, the suspension remains in place and no timeline for restarting production has been provided.
The shutdown came just weeks before the expected completion of commissioning work on a second oil train, where hydrocarbon testing had already begun.
“Although we had a strong start to 2026, production in Israel is currently suspended following a government-ordered shutdown in response to the recent geopolitical situation in the Middle East,” chief executive Mathios Rigas said in a statement.
He added the company was “in close and continuous communication with the authorities” to resume operations, adding safety of staff remained the top priority.
Israel accounted for around 113,000 barrels of oil equivalent per day in 2025, representing more than 70% of Energean’s total production. The same asset had previously been forced offline in June 2025 under a government order before recovering to 138,000 boepd during the third quarter.
Energean has therefore suspended its 2026 guidance for Israeli production, costs and group net debt. Forecasts for the rest of the portfolio remain unchanged at 32,000–36,000 boepd.
The company’s annual loss was largely due to non-cash accounting charges. These included a $286 million impairment related to the Cassiopea gas field in Italy, where reservoir performance failed to meet initial expectations. Additional charges comprised $135 million in accelerated depreciation and a $124 million write-off of deferred tax assets.
Energean is currently engaged in arbitration with the operator of the Cassiopea field. Since Oct. 1, 2025, the operator has withheld Energean’s share of production as a non-cash settlement linked to disputed payables, which totalled roughly €144 million as of Dec. 31.
Net debt increased to $3.255 billion from $2.95 billion, pushing leverage to 2.9 times adjusted EBITDAX. During the year, Energean refinanced debt due in 2026 and 2027 through a $750 million 10-year term loan and the issuance of €400 million in senior secured notes, eliminating near-term maturities.
Separately, on March 12 the company signed an agreement to acquire a 20% non-operated interest in Block 14 and a 15.5% stake in Block 14K offshore Angola. The deal carries a base consideration of $260 million with up to $250 million in contingent payments, capped at $25 million annually. Completion is expected by the end of 2026.
At the end of the year, Energean reported 2P reserves of 989 million barrels of oil equivalent, down 1% from the previous year.
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