Ithaca Energy (LON:ITH) has signed off on a special $200 million (£158m) dividend following its successful merger with Italian energy giant Eni (MILAN:ENI) and a refinancing.
The firm, which now also includes the UK North Sea assets of Neptune Energy following Eni’s $4.9 billion buyout announced in January, shrugged off concern over the Rosebank field, which is currently subject to a challenge in UK courts.
In an update on its third quarter peformance, Ithaca said Rosebank, in which is has a 20% stake alongside Norway’s Equinor (OSLO: EQNR), “continues to progress” and confirmed that first oil was on track for 2026/27.
The Ithaca/Eni “transformational business combination” completed in October, creating the UK North Sea’s second largest oil and gas operator.
The deal saw Eni take a 38.5% of the group, with Ithaca Energy controlling the remaining 61.5%.
The group has stakes in 34 producing North Sea assets including key hubs such as Cygnus, the J-Area and Elgin-Franklin.
Executive chairman Yaniv Friedman said: “The completion of Ithaca Energy’s
transformational business combination with Eni UK, creates a dynamic growth player with significant organic and inorganic growth optionality, and has been further bolstered by the group’s recent $2.25bn refinancing and higher credit rating, reflecting the immediate benefits to the group of the combination.”
Friedman reaffirmed production guidance, saying the firm was on track to keep above 100,000 boe/d having hit “peak” rates above 120,000.
He added the extra dividend for shareholders supported a target of $500m for shareholders this year.
Chief executive Luciano Vasques, who took on the role when the deal completed, said it was an “exciting time” to have joined the firm from Eni.
He said the company was “ideally positioned to create value both in the UK and through international diversification”.
Chief financial officer Iain Lewis added: “Our enhanced balance sheet following the successful conclusion of a $2.25bn refinancing in October offers significant liquidity to the group as we continue to pursue our growth aspirations.
“The immediate benefit of the business combination, with increased scale, diversification and debt capacity was reflected in the demand for and pricing of the refinancing.”
More to follow.
