Energean Posts 2022 Profit, Lays Foundation for Growth

Energean closed 2022 on a high, reporting net income of $17.3 million, compared to a $96.2 million loss in 2021. The company’s strong financial results were underpinned by strong commodity prices, Energean said.

In its report, Energean noted that its net income was negatively impacted by $119.4 million of windfall taxes in Italy, which the company expects to have been applied on a one-off basis. Energean’s revenues for the year hit $737.1 million, a 48.3 percent increase over 2021.

“2022 was a year of transformation for Energean – where a long-held vision became an operational reality. It was a year of positive delivery. We commenced production from the only FPSO in the strategically vital Eastern Mediterranean region, paid dividends to our shareholders, and laid the foundation for our future growth through the discovery and de-risking of new natural gas resources adjacent to our infrastructure,” said Mathios Rigas, Chief Executive of Energean.

“Energean was the sole owner-operator of five deepwater wells, which drove a 20 percent increase in our reserve base, and marked the 15th consecutive year of reserve and resource base increases for Energean,” he said, adding that the company is on track to deliver between 4.5 and 5.5 bcm of gas into the Israeli domestic gas market this year.

Speaking of the first quarter of 2023, Rigas added that it continued the positive trend. “Production from Karish is in line with our expectations, and in February we supplied the first Israeli hydrocarbon liquids export cargo to international markets,” he said.

Rigas reminded that the company achieved first gas at NEA/NI in Egypt, with three further wells due to come onstream during the year. In Italy, the company is the third largest producer of natural gas, according to Rigas, who added that the company is looking forward to increasing its contribution towards the country’s energy supply. And in Greece, Energean is continuing to explore the untapped resources of the country.

“The remainder of 2023 will see us present the development concept for the Olympus Area, offshore Israel, and increase the capacity of the Energean Power FPSO to 8 bcm/yr. This is alongside delivery of production in line with guidance plus on-target returns, as promised, to our shareholder base,” stressed Rigas.

He further noted that the global energy crisis is not over, with the global gas market remaining dangerously tight. He said that Energean hopes that governments understand the value of enhanced domestic and regional energy production “that can only be delivered through long-term investment”.

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