Ithaca Energy has posted its full year results for 2025, with a pre-tax profit of $840.3million turned into a reported loss of $84.1million as a result of the Energy Profits Levy.
The energy giant enjoyed an "excellent" year, with profits before tax more than doubling 2024's figure of $334.3million.
However, that profit was completely wiped out and turned into a post-tax loss of $84.1million following a one-off, non-cash deferred tax charge of $327.6 million in Q1 2025 reflecting enactment of two-year extension of EPL to 31 March 2030.
Despite the EPL setback, Executive Chairman Yaniv Friedman said Ithaca goes into 2026 with "considerable momentum and strength" following its performance last year and with progress on the Rosebank project continuing in line with expectations towards first production in 2026/27.
Material project activity executed at Rosebank in 2025 included:
- Successful delivery of offshore subsea installation scopes in 2025, ahead of drilling activities commencing
- The FPSO Rosebank recently sailed away from Dubai having undertaken major refurbishment works over the past two and a half years. Remaining completion and commissioning scopes are planned during this year as part of the programme to moor and hook-up in field ahead of first production in 2026/27
- Further environmental information was submitted for the development in 2025, and Ithaca awaits the decision on environmental consent
Net capital expenditure relating to the Rosebank development totaled $224million (2024: $198million), below the guidance range of $230million to $270million
This year, Rosebank spend is projected to be between $280-320million, reflecting increased activity in final phase of development.
Yaniv Friedman, Executive Chairman, commented: "Ithaca Energy delivered another year of excellent operational and financial performance in 2025. Our acquisitions in Seagull and Cygnus contributed accretive growth, which along with organic investment in the period, achieved an exit rate of 148 kboe/d and allowed us to enter 2026 with significantly increased production capacity.
"In the West of Shetland, we saw material project activity, including at Rosebank where we are progressing in line with our development timeline towards first production in 2026/27. We also saw significant progress on the maturation of the Cambo and Tornado projects, with all activities supporting a potential FID within 12 months.
"We maintained our strong financial position throughout the year, supported by strong cash flow generation, a disciplined hedging strategy, and a successful bond issuance and an upsizing of the RBL facility, giving us an improved liquidity position. We remain committed to delivering attractive shareholder returns and I am pleased to announce the third tranche of our 2025 dividend of $200million, taking our total return to shareholders for FY 2025 to $500million, in line with our stated target. Moving forward, as a stronger business, we are raising the targeted shareholder returns range from 15-30% to 20-35% post-tax CFFO, with a 30% target ranging between $470-520million in FY 2026, reflecting the strong continued performance of our diverse asset base which also supports our material capital programme as we continue to invest in organic growth opportunities.
"We enter 2026 with considerable momentum and strength, focused on upholding our strategic, operational and financial discipline, and well positioned to pursue value-driven growth and deliver sustainable returns."
FSTE100
The UK's flagship share index, the FTSE 100, was up 94 points at 10,429 shortly after opening this morning.
Brent crude oil futures were down 1.28% at $102.13 a barrel.
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