Energean plc (LSE:ENOG) reported a 29% decline in first-quarter 2026 revenue to $288 million from $407 million a year earlier after Israeli authorities ordered a 41-day shutdown of production at the Karish gas field amid heightened regional tensions.
The company also reduced its quarterly dividend by two-thirds to 10 U.S. cents per share from 30 cents, with shares moving lower following the announcement.
Production and financial performance
Average working-interest production for the three months ended 31 March 2026 fell to 114 thousand barrels of oil equivalent per day (kboed), compared with 145 kboed in the same period last year.
Israel contributed 78 kboed during the quarter, while the rest of the portfolio delivered 37 kboed, including 27 kboed from Egypt.
Cash flow from operating activities declined 16% year-on-year to $200 million, while adjusted EBITDAX totalled $184 million. Net profit for the quarter came in at $32 million.
Cash production costs, including royalties, reached $116 million, or $80 million excluding royalties. Development and production expenditure fell 32% year-on-year to $90 million.
Net debt stood at $3.33 billion at 31 March 2026, with leverage measured at 3.2 times last-twelve-month rolling adjusted EBITDAX. The company said net debt later declined to $3.275 billion by 30 April 2026.
Guidance revised lower
Energean lowered its full-year 2026 production guidance to 130-140 kboed from the previous range of 140-150 kboed.
The downgrade reflected reduced expectations for Israel, where production guidance was cut to 98-104 kboed from 108-114 kboed previously. Guidance for the remainder of the portfolio was unchanged at 32-36 kboed.
Analysts at Stifel Financial Corp. had forecast production of 126 kboed, below the midpoint of the revised guidance range at 135 kboed.
The company also increased full-year development and production capital expenditure guidance to $800-860 million from $740-800 million previously.
Consolidated net debt guidance was revised higher to $3.250-3.350 billion from an earlier range of $3.200-3.300 billion. Decommissioning expenditure guidance was reduced to $50-60 million, while exploration spending guidance was maintained at $10-15 million.
Operations resume and project progress
Following the restart of the Energean Power FPSO on 9 April, group production has averaged 152 kboed, including 116 kboed from Israel.
The company expects a second oil train to be commissioned by the end of May, which it said should increase liquids production from the current year-to-date average of 13 thousand barrels per day to more than 20 thousand barrels per day.
In Egypt, net receivables declined to $85 million by 30 April from $209 million at the end of 2025 after a $125 million payment from Egyptian General Petroleum Corporation in April. Energean said this represented the lowest receivables balance since acquiring the Edison E&P portfolio in 2020.
The Katlan development and Nitzana export pipeline projects remain on schedule, with first gas expected during the first half of 2027.
More about Energean
Energean plc is an independent oil and gas producer focused on the Mediterranean region, with operations spanning Israel, Egypt and other international markets. The company specialises in natural gas development and offshore production infrastructure, with key assets including the Karish field and Energean Power FPSO.
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