Ithaca Energy reported production more than doubled in first half of 2025 following its business combination with Eni’s UK subsidiary
Shares in UK North Sea oil and gas producer Ithaca Energy rose sharply on Wednesday as the company upgraded its production guidance for the year after first-half production more than doubled.
The company reported first-half 2025 results on Wednesday, revealing average production of 123,600 barrels of oil equivalent per day in the first six months of the year, compared to 53,000 boepd in the same period last year.
Ithaca updated its production guidance for 2025 to a range between 119,000 boepd and 125,000 boepd, up from a previous range of 109,000 boepd to 119,000 boepd.
The production enhancement is due to Ithaca’s business combination with Eni’s UK division which, Ithaca said, now makes it the second-largest producer in the UK.
Shares in Ithaca rose on Wednesday following the earnings announcement, climbing nearly 9% to 193.80 pence ($2.62) as of 10:40 a.m. in London.
Adjusted first-half 2025 earnings before interest, taxes, depreciation, amortisation and exploration expense stood at $1.1 billion, compared to $533 million in the first half of 2024.
A net loss of $217.5 million was reported to reflect a one-off, non-cash deferred tax charge in the first quarter of 2025 of $327.6 million due to the two-year extension of the Energy Profits Levy, also known as the windfall tax, to 31 March 2030.
Strong cash generation enabled Ithaca to declare a first interim 2025 dividend of $167 million, or $0.101 per share, and an expected acceleration of a second interim 2025 dividend to December 2025 of $133 million.
Executive chairman Yaniv Friedman said his company’s “transformed business” is delivering on the strategy of disciplined investment and operational excellence, and highlighted the future growth coming from the West of Shetlands offshore area.
He said that “strategic progress across our West of Shetland developments, and recent acquisitions executing on our UKCS growth strategy, further position us for long-term growth”.
The West of Shetlands area comprises the under-development Rosebank oilfield, the Cambo oil discovery, plus the Tornado and Fotla discoveries.
The Rosebank project, operated by Equinor, is in the execution phase progressing towards first production in 2026 or 2027.
The Cambo discovery is one of the largest undeveloped oilfields in the UK, and Ithaca said an 18-month licence extension and the completion of a “technical refresh provides a clear pathway towards FID and potential farm-down”.
Finally, the Tornado gas discovery is advancing through front-end engineering and design towards a final investment decision, while the national regulator has approved the Fotla development concept.
Ithaca also welcomed improved regulatory and fiscal clarity with regard to its West of Shetlands position.
Publication of the UK government’s Scope 3 environmental impact assessment guidance in June 2025 supported the re-opening of the consenting process, while Ithaca said it has been an active participant in the UK government’s windfall tax successor regime consultation “that seeks to establish an oil and gas price mechanism for future price shock scenarios, with outcome of consultation expected in Q4 2025”.
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