Ithaca Energy Share Discussion Threads

[anley] 31/5/2023 17:29

today the company publishes its results and BINGO the shares go down.....so nothing new here.

I bet the bosses at ITH can't understand just what is going on in the UK oil/gas sector. Their brokers seem to have pushed them in to a LSE quote at considerable cost but the benefits have been dreadful.

In March - see above - one said that this government just looks stupid to overseas investors. I have friends in Hong Kong who just have funds in Singapore ready to invest BUT ask them when and they look and say - when you have a stable government with sensible policies and a taxation system which allows UK based Oil/Gas businesses to make a sensible return.

We will wait..............

[itsriskythat] 05/4/2023 10:03

Buying started at this level of 160p

[anley] 08/3/2023 15:50

The whole sector is so unloved and will remain so for moons or until the governments sees that we really do need a sensible energy security policy.

[ashkv] 02/3/2023 12:06

Sad state - UK Plc being shortchanged by its own government :(

Https://www.cityam.com/offshore-industry-pleads-with-hunt-for-help-windfall-us-eu/

[ashkv] 01/3/2023 13:25

https://www.investorschronicle.co.uk/news/2023/02/28/windfall-tax-puts-cambo-decision-in-doubt-ithaca/
Windfall tax puts Cambo decision in doubt: Ithaca
Ithaca Energy's executive chair tells Investors' Chronicle that financiers have backed away from the North Sea
February 28, 2023
By Alex Hamer
Ithaca Energy (ITH) picked an interesting time to come back to public life. Its first five months since November's initial public offering (IPO) have seen oil and gas prices drop at the same time as the UK government ramped up its energy profits levy (EPL).
As a result, the company's share price is down a quarter from its IPO price of 250p, a drop similar to those sustained by other North Sea-exposed companies like Harbour Energy (HBR) and Serica Energy (SQZ) over the same period.
Executive chair Gilad Myerson told Investors’ Chronicle the EPL had taken the air out of the sector even with the government calling for greater domestic oil and gas supply. “Since the listing, we’ve faced quite some headwinds coming from the UK government,” he said, adding that Ithaca was “very committed” to developing its assets and to the North Sea specifically.
Prime minister Rishi Sunak brought in the windfall tax on energy company profits as chancellor, then expanded it in November once he moved into 10 Downing St. The levy was hiked from 25 per cent to 35 per cent, bringing the headline tax rate for UK oil and gas producers to 75 per cent.
The move was aimed at raising cash to fund the government’s cost of living support programmes such as the energy price guarantee. But industry figures have argued that the lack of an end date, and lack of a price floor below which the tax would disappear, had hurt investment at a time when energy security and supply remains a top concern for the UK.
Ithaca is at the centre of this discussion as it is considering a green light for the Cambo and Rosebank fields, the largest undeveloped fields in the UK North Sea. Cambo is more significant for Ithaca as it holds a 70 per cent stake and is the operator of the asset. Ithaca also has a 30 per cent stake in Rosebank, which is operated by Equinor (NO:EQNR). Cambo is expected to be a huge field when operational, producing tens of thousands of barrels of oil per day.
The final investment decision was expected in the first half of this year but comments by Myerson cast doubt on that timeline: “The readiness to hit the FID approval has gone down quite significantly because of a lack of financing,” he said.
“The challenge is that the credit availability to develop these projects has been reduced significantly. The [reserve-based lending] is run using an oil price of $50-$54 a barrel, and if you add a 75 per cent tax rate at $52 a barrel [average], it leaves you with very little credit availability to develop a project."
Going north
Previous roadblocks for the two fields were part of the reason why Ithaca was able to acquire its stakes in the first place. It acquired ownership via a takeover of Siccar Point Energy for $1.46bn last year ($1.1bn upfront), and after Shell (SHEL) had publicly said it would not back the development of the Cambo field, albeit this was before the energy crisis. The energy giant’s 30 per cent stake is reportedly up for grabs.
Barclays analyst James Hosie said the EPL introduction and extension had “shifted the investment climate for companies like Ithaca, with the value of UK upstream assets further eroded by worries that it becomes a permanent part of UK upstream taxation”.
In its IPO prospectus, Ithaca was positive about the investment allowance aspects of the EPL policy, which also cuts the tax paid for companies spending big on North Sea development. Myerson said meetings with the government before the listing had indicated this would be a fixture of the strategy in order to encourage more development.
The investment allowance was reduced in the Autumn Statement by chancellor Jeremy Hunt, and Labour has campaigned to remove it entirely. “We were seen as an organisation that would be shielded from the EPL due to the [investment allowance provisions],” said Myerson.
Ithaca 2.0
The company that now trades as Ithaca is very different to the one that Delek Group took over and delisted in 2017. Its production is around eight times the company’s 2016 production of 9,000 barrels of oil equivalent per day (boepd), and the various development options could take it over 100,000boepd.
Delek still holds just under 90 per cent of the company. Harbour Energy, which itself listed 2021 and had one significant shareholder in EIG Asset Management, has managed to open up its share register without major share sales derailing its share price.
If a similar move is on the cards for Ithaca, it could not happen before May, when a lock-up on Delek share sales ends. Myerson said the Israeli company was a dedicated long-term shareholder.
One other point of interest for potential shareholders will be the balance sheet - the company has focused on paying down debt in recent months, including the intragroup loans advanced by Delek. These have largely been paid down, and Barclays forecasts a net debt reduction from $1.1bn (£910mn) at the end of 2022 to just $193mn by the end of this year. But the plan is to load up on debt again to enable building on a variety of projects, if possible, so this may shoot up again in the coming years.
Hosie, who has an underweight rating on the company, said the forecast debt level would leave the company “well positioned to commit to the planned increase in capital investments and dividend policy”. The dividend yield is one of the highest on the London Stock Exchange at its current share price - a whopping 18 per cent for 2023, as forecast by Barclays.

[anley] 28/2/2023 15:04

TRUST.......

[ashkv] 28/2/2023 11:07

Ithaca Energy currently trading way below November 2022 IPO price of 250p.

Hefty dividend of USD 400 million a year and would appear a compelling buy in the 170-175p range.

However, was flummoxed to come across the below Barclay's analyst 12 month target price for Ithaca.

Any thoughts as to why the low opinion of the share from the analyst?

"9 February 2023 Barclays starts Ithaca Energy with 'underweight' - price target 140 pence"

[ashkv] 28/2/2023 11:04

Ithaca Energy November 2022 IPO at 250p Mid-Size Entrant to the UK E&P Listed Space.

A number of growth projects in the pipeline that are awaiting FID!

[spitthecat1] 23/2/2023 08:56

It's gone ex dividend today -11p approx

[anley] 23/2/2023 08:32

And today that is just what the market has said............180p to 160p!!

[anley] 23/1/2023 17:08

The price seems to be steady but still in an unloved sector.

[pro_s2009] 02/1/2023 06:11

Dont forget to get your entries in for the 2023 annual contest.

http://www.stockchallenge.co.uk/

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[pro_s2009] 23/12/2022 03:59

Worth a read :

https://bisoninterests.com/content/f/2023-outlook-buying-the-seasonal-sale-in-oil-gas-equities

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[bomfin] 02/12/2022 07:52

Well, Them not having fixed the market cap does not inspire confidence in their other market cap figures. Not great for a financial website. imho dyor

[pro_s2009] 11/11/2022 00:16

Emailed them, hopefully will be fixed soon.

[bomfin] 10/11/2022 12:34

Thanks PRO

[robizm] 10/11/2022 12:21

What an idiot you are Blackhorse as most brokers don’t let you trade in these yet so unless you own part of delek you are a liar

[blackhorse23] 10/11/2022 12:03

Sold today & bought CURY (LSE)

[pro_s2009] 10/11/2022 09:46

Yes it should........I will email them later if they dont correct it.

[bomfin] 10/11/2022 09:45

Should the market cap not be 10 times what ADVFN are showing above ?

[pro_s2009] 09/11/2022 23:58

And this is the Half Year results to June 30th 2022

https://ithacaenergy-files.fra1.cdn.digitaloceanspaces.com/Documents/q2-ytd-2022-mda.pdf

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[pro_s2009] 09/11/2022 23:57

The prospectus is on the link below :

https://ithacaenergy-files.fra1.cdn.digitaloceanspaces.com/Documents/IPO-b2f4d6/Ithaca%20Energy%20plc%20-%20Final%20Prospectus.pdf

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[chessman2] 09/11/2022 20:43

Another candidate is JOG which has 2 or 3 directors connected with Ithaca and an appealing tax loss waiting to be taken on board by the buyer.

[sbb1x] 09/11/2022 20:25

Found it 70,000 barrels per day