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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Ithaca Energy Plc | LSE:ITH | London | Ordinary Share | GB00BPJHV584 | ORD 1P |
| Price Change | % Change | Share Price | Shares Traded | Last Trade
|
|
|---|---|---|---|---|---|
| 0.40 | 0.37% | 108.20 | 513,499 | 16:35:08 |
| Bid Price | Offer Price | High Price | Low Price | Open Price | |
|---|---|---|---|---|---|
| 108.00 | 109.00 | 109.40 | 106.80 | 108.60 | |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Offices-holdng Companies,nec | USD 2.32B | USD 215.64M | USD 0.2126 | 5.09 | 1.09B |
| Last Trade Time | Trade Type | Trade Size | Trade Price | Currency |
|---|---|---|---|---|
| 16:35:08 | UT | 78,243 | 108.20 | GBX |
| Date | Time | Source | Headline |
|---|---|---|---|
| 06/12/2024 | 13:53 | UK RNS | Ithaca Energy PLC 2024 Special Dividend: payment in sterling |
| 06/12/2024 | 13:41 | UK RNS | Ithaca Energy PLC Directors’/PDMR Shareholdings |
| 21/11/2024 | 10:41 | ALNC |  Ithaca Energy shares surge as declares USD200 million special dividend |
| 21/11/2024 | 07:01 | UK RNS | Ithaca Energy PLC Announcement of 2024 Special Dividend |
| 21/11/2024 | 07:00 | UK RNS | Ithaca Energy PLC Third Quarter Update and Results |
| 12/11/2024 | 05:54 | ALNC | Environmentalists to challenge Rosebank and Jackdaw fields in court |
| 07/11/2024 | 11:44 | UK RNS | Ithaca Energy PLC Directors'/PDMR Shareholding |
| 24/10/2024 | 06:00 | UK RNS | Ithaca Energy PLC Transaction notification |
| 22/10/2024 | 06:00 | UK RNS | Ithaca Energy PLC Transaction Announcement |
| 21/10/2024 | 15:04 | UK RNS | Ithaca Energy PLC Director/PDMR Shareholding |
Ithaca Energy (ITH) Share Charts1 Year Ithaca Energy Chart |
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1 Month Ithaca Energy Chart |
Intraday Ithaca Energy Chart |
| Date | Time | Title | Posts |
|---|---|---|---|
| 06/12/2024 | 14:37 | ithaca with charts | 122 |
| 04/8/2024 | 13:33 | Ithaca Energy - North Sea Oil & Gas Excellence | 47 |
| 05/7/2024 | 13:27 | Ithaca Energy | 67 |
| 27/7/2023 | 07:11 | ithaca with charts | - |
| 02/9/2011 | 10:29 | The share with 1,000 threads..... | 444 |
| Trade Time | Trade Price | Trade Size | Trade Value | Trade Type |
|---|---|---|---|---|
| 16:35:08 | 108.20 | 78,243 | 84,658.93 | UT |
| 16:29:55 | 108.60 | 1,024 | 1,112.06 | O |
| 16:29:52 | 108.00 | 2 | 2.16 | AT |
| 16:29:26 | 108.40 | 855 | 926.82 | O |
| 16:29:25 | 108.00 | 1,095 | 1,182.60 | AT |
| Top Posts |
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Posted at 13/12/2024 08:20 by Ithaca Energy Daily Update Ithaca Energy Plc is listed in the Offices-holdng Companies,nec sector of the London Stock Exchange with ticker ITH. The last closing price for Ithaca Energy was 107.80p.Ithaca Energy currently has 1,014,372,281 shares in issue. The market capitalisation of Ithaca Energy is £1,101,608,297. Ithaca Energy has a price to earnings ratio (PE ratio) of 5.11. This morning ITH shares opened at 108.60p |
Posted at 06/12/2024 14:36 by bigegoadvfn 20 December 9.5242p paid per share"As previously announced, the dividend is payable in cash in Sterling to holders of the ordinary shares. Sterling dividends will be converted from US dollars at an average of the mid-point of the market exchange rate over the three dealing dates on 3 December, 4 December and 5 December 2024 (£1 = US$1.2694). Accordingly, the amount of the sterling dividend payable in cash on 20 December 2024 will be 9.5242 pence per share." |
Posted at 02/12/2024 14:48 by bigegoadvfn Hi Pete,I'm still learning about this one too... From what I gather, at a high level, there were about 1bn shares in issue previously. Then Eni agreed to merge certain North Sea assets into Ithaca in return for about a third of the new larger company. That was completed recently and resulted in the shares in issue increasing to 1.6bn in order to achive this - with the 600m or so new shares going to Eni. Good list of major shareholders here if you register for free: The Eni deal follows a model that they have used successfully with other companies (including Vår Energi in Norway and Azule Energy in Angola) which they refer to as "previous successful upstream combinations" to create a "satellite model", info here: The important bit for me is that Eni are not simply going to dump and run rather: "Following the Combination, Eni is a fully committed, long-term and supportive shareholder of Ithaca". And Eni is a EUR 45 billion company... So basically now ITH has 52.5% (majority) shareholder Delek Group, followed by 37.4% Eni, leaving almost exactly 10% for everybody else. It's not that liquid then and these 2 major shareholders basically have a cash cow to milk. I'm ok to join in. The huge dividends might not last forever, but plenty of analysis suggests they will last well into 2028/2029 - by which time it is not unreasonble to think investors today will have earned their entire purchase price back - ie buy a share for 104p today that will pay about 30 cents a year (23p dependent on GBP/USD) and your investment will pay for itself in about 4 or 5 years. Of course no dividend is guaranteed, and there are risks, eg environmental action around assets like the Rosebank field - but overall based on what I have found out the risk/reward is favourable to add to my portfolio - and I'm already expecting the special dividend on 20 Dec now. Hope that's helpful. |
Posted at 02/12/2024 14:21 by petersinthemarket Whilst the HiYld and potential for capital gain are an obvious draw, I have to confess that I am still holding back on any major investment here because I don't really understand the business, including the latest Eni link.What is a combination? Is it a JV or a T/O? What is the intended benefit to ITH and it's investors. ITH doesn't (to me) look like a straightforward (single) business entity, it looks more like an accumulation of different percentages of differant companies. If someone has the patience and the time to offer a simple picture of the ITH set up, I would be most grateful. pete |
Posted at 27/11/2024 18:35 by s34icknote Ith merged with eni .So yes more shares in issue. Company has nearly double in size . However production has gone from 60k to 120k .Revised payout is 500 million dollars Pre merger was paying this but with higher oil prices . Now bigger group paying 500 million with lower oil prices .7.5p paid in August , 9.5p paying in dec , and Again in April 2025 proposed div ! Free cashflow around 800 million dollars .Risk is oil price . But that goes both ways ! |
Posted at 27/11/2024 13:51 by bigegoadvfn I'm interested. :)Tell me more about the 27% yield HL are telling me exists here. I've read about the $500m annual dividend target which seems a lot for a company with a market cap of less than £2bn. What's the catch here? What are the risks - eg is it just production related? And what about this dilution of existing shareholders I am reading about? I assume it's happened now so in the past (following giving shares to Eni mid-2024) so the current shares in issue of approx 1.6 billion is correct for now and not expected to change significantly? Cheers in advance for any guidance. |
Posted at 22/11/2024 14:34 by tygarreg At my buy price of 110p, and an expected 30p return over next 12 months, that's 27%!! Can't beat that. Just hope share price holds up too!Is today or Monday last chance to buy in for the special dividend? |
Posted at 22/8/2024 17:23 by loganair It looks like the dividend for the up coming full year will be 29.58USCents compared to 39.65USCents last year.At an exchsnge rate of 1.3 USD to GDP = 22.75p for the up coming year = 17.8% yield at the current share price. |
Posted at 23/4/2024 17:43 by hpotter 23 April 2024Ithaca Energy plc ("Ithaca Energy", the "Company" or the "Group") Transformational Combination of Ithaca Energy and substantially all of Eni S.p.A.'s ("Eni") UK Upstream Oil and Gas Assets, Accelerating Growth and Value Creation · UK Continental Shelf ("UKCS") powerhouse producing 100,000 - 110,000 barrels of oil equivalent per day[1] · Agility of an Independent and capability of a Major, implementing Eni's regional satellite model · Highly cash-generative combination providing material dividend capacity with ambition for up to $500 million total dividends each year in 2024 and 2025[2] · Complementary portfolio unlocks potential for material long-term organic growth · Platform for further inorganic growth in the UK and internationally Gilad Myerson, Executive Chairman, Ithaca Energy, commented: "The transformational combination with Eni UK will further enhance Ithaca Energy's position as a leading UKCS production and growth company, with positions in 6 of the 10 largest UKCS assets in the basin[3]. The synergistic combination with Eni's highly cash-generative UKCS portfolio has the ability to unlock our long-life organic growth opportunities creating a combined entity with substantial scale and longevity. With Eni as a significant, long-term and supportive shareholder, the enlarged group will benefit from increased financial strength to support the execution of our BUY, BUILD and BOOST strategy and gain access to Eni's world-class technical capabilities and operational support. The combination will create a solid platform which can underpin material shareholder distributions, including an ambition to pay special dividends in 2024 and 2025, as well as future organic and inorganic growth2." OVERVIEW OF THE COMBINATION Ithaca Energy, a leading independent oil and gas operator in the UK North Sea is pleased to announce it has reached an agreement on a proposed combination with Eni in relation to substantially all of the upstream assets of Eni in the UK (the "Eni UK Business") in exchange for the issue of ordinary shares in Ithaca Energy to a subsidiary of Eni, Eni UK Limited ("Eni UK") (the "Combination"), such that at completion of the Combination ("Completion"), Eni UK will be issued ordinary shares representing 38.5% of the enlarged issued share capital of Ithaca Energy. The Combination is expected to create a strategic platform for long-term growth in the United Kingdom North Sea combining Ithaca Energy's portfolio of development projects and efficient operating model with enhanced production and cash flow from the Eni UK Business and Eni's world-class technical expertise. The combination of Ithaca Energy and the Eni UK Business (together the "Combined Group") has the underlying un-risked potential to organically grow production to 150,000[4] boepd by the early 2030s, whilst supporting ongoing shareholder returns. The Combination is expected to be accretive per share to EBITDAX, CFFO and Profit, providing a platform for enhanced shareholder returns. The portfolio of the Eni UK Business includes operated interests in 1 producing field: Cygnus (38.75% working interest); and non-operated interests in 10 producing fields: Elgin Franklin Area including Elgin, Franklin, West Franklin (21.867% working interest) and Glenelg (8% working interest), J-Area including Judy, Joanne, Jasmine (33% working interest) and Jade (7% working interest), Seagull (35% working interest) and Tommeliten A (0.07% working interest). The Combination excludes Eni UK East Irish Sea assets and CCUS activities. In 2023, the Eni UK Business generated $775 million of EBITDA[5]. BACKGROUND TO AND REASONS FOR THE COMBINATION Combination Highlights The board of directors of Ithaca Energy (the "Ithaca Energy Board") believes the Combination represents a highly value-accretive opportunity for Ithaca Energy's shareholders, supporting delivery of Ithaca Energy's BUY, BUILD and BOOST strategy. The Combination: Creates a UKCS powerhouse - The 2nd largest independent operator in the UKCS by 2024 production[6] - Stakes in 6 of the 10 largest UKCS fields3 - Pro-forma 2024 production of 100,000 to 110,000 barrels of oil equivalent per day1 - Forecast to be the largest operator in the UKCS by production in 2030[7], on an un-risked basis - Material combined long-life 2P reserves and 2C resources base of 658 million barrels of oil equivalent[8] Combines the agility of an Independent and capability of a Major - Eni will be a fully committed, long-term and supportive shareholder in the Combined Group supporting the delivery of Ithaca Energy's BUY, BUILD and BOOST strategy - Eni's successful strategic satellite structure will further enhance this UKCS powerhouse - Technical services agreement with Eni will provide Ithaca Energy with access to leading technical expertise to drive future growth Delivers material cash flow and optionality - Substantial cost savings to be realised through operational and financial synergies - Accretive per share to EBITDAX, CFFO and Profit, providing a platform for enhanced shareholder returns - Expected to improve Ithaca Energy's credit rating from B+/B1 towards BB-/Ba, with a pathway towards investment grade - Committed 2024 and 2025 dividend of 30% post-tax CFFO with an ambition for special dividends to increase total shareholder distributions to up to $500 million per annum2 Unlocks potential for material long-term growth - Reinforces Ithaca Energy's status as the largest UKCS operator by reserves and resources[9] - Enhanced cash flows unlock significant growth from Ithaca Energy's development projects, including the second largest undeveloped discovery in the UK North Sea - Cambo - Organic growth potential to increase the Combined Group's production to over 150,000 barrels of oil equivalent per day4 by the early 2030s on an un-risked basis Accelerates inorganic growth opportunities in the UK and internationally - Increased scale, debt capacity and potential for lower cost of debt provides material firepower for growth - Focused on opportunities for further inorganic growth in the UK - Option to diversify internationally if the right opportunity is identified, leveraging Eni's global reach and capability Overview of the Combined Group's Portfolio - The Combination will create a UKCS powerhouse with 37 producing assets - Provides increased non-operated exposure to the Elgin-Franklin and J-Areas and diversification within the UKCS through the operated Cygnus producing field and recently onstream Seagull field - The current producing assets and the sanctioned Rosebank development are expected to sustain production for the Combined Group following Completion at greater than 100,000 barrels of oil equivalent per day until at least 2028[10] - Combined 2P Reserve and 2C Resource base of 658 million barrels of oil equivalent8 with a resource life of 15 years - Based on 2023 proforma production the Combined Group was split 51% liquids / 49% gas[11] 2024 Guidance for the Combination All guidance below is based on a full year contribution from Ithaca Energy and inclusion of Eni UK from the economic effective date of 30 June 2024[12]: - Expected 2024 combined production of 80,000 to 87,000 barrels of oil equivalent per day - Net operating cost guidance range of between $650 million and $730 million - Net producing asset capital cost guidance range of $410 million to $480 million (excluding pre-FID projects and Rosebank development) - Net Rosebank project capital cost guidance range of $190 million to $230 million - Cash tax guidance of $435 million to $455 million - Ambition for up to $500 million total dividend in 20242 DETAILS OF THE COMBINATION Key Transaction Terms Based on the relative net asset valuations of Ithaca Energy and the Eni UK Business, agreed between Ithaca Energy and Eni, Eni will transfer the Eni UK Business to Ithaca Energy in exchange for the issuance of such number of new Ithaca Energy shares to Eni UK as is equal to 38.5 per cent of the fully diluted issued share capital of Ithaca Energy at Completion, subject to adjustment in respect of certain share option rights (the "Consideration Shares"), with existing Ithaca Energy shareholders owning the remaining 61.5 per cent of the share capital of the Combined Group (the "Merger Ratio"). Using the number of Ithaca Energy shares outstanding as at 23 April 2024, 635,013,542 Consideration Shares would be issued to Eni UK to reflect the Merger Ratio. Based on the closing share price of Ithaca Energy of 118.8p on 23 April 2024, the Consideration Shares are worth c. £754 million, although it should be noted that the Merger Ratio was determined between the parties on a relative net asset value basis rather than with reference to market share price. The key terms of the Combination are set out in the business combination agreement entered into between Ithaca Energy, Eni UK and Neptune Energy Group Holdings Limited ("Neptune"), both subsidiaries of Eni (the "Business Combination Agreement"). The economic effective date for the Combination will be 30 June 2024, with Completion expected in Q3 2024, subject to the satisfaction of certain regulatory and other customary conditions precedent. Certain customary financial adjustments will be made for, amongst other things, cash, financial debt and working capital, each as at the economic effective date, to maintain the agreed Merger Ratio. Free Float As a consequence of the issue of the Consideration Shares to Eni UK, and Ithaca Energy's existing shareholder structure, the Combination would result in the number of ordinary shares in public hands being approximately 7 per cent., and below the minimum 10 per cent. as required by the listing rules issued by the Financial Conduct Authority (the "FCA") (the "Listing Rules"). Therefore, in order to ensure that the number of ordinary shares in public hands remains at or above 10 per cent., Delek has undertaken to use reasonable endeavours to sell down such number of ordinary shares representing approximately 3 per cent. of the enlarged issued share capital of the Company (the "Delek Sell Down"), prior to Completion. Delek will enter into a call option agreement with Eni UK pursuant to which Delek will have the option to require Eni UK to transfer to Delek such number of Consideration Shares as represents approximately 1 per cent. of the enlarged issued share capital of the Company (the "Call Option"). Once the Delek Sell Down is complete, 10 per cent. of Ithaca Energy's ordinary shares will be held in public hands. Following this and assuming the Call Option is exercised, immediately after admission of the Consideration Shares to the Premium Listing segment, Delek will hold approximately 52.7 per cent. and Eni UK will hold 37.3 per cent. of Ithaca Energy's ordinary shares. Rule 9 waiver As Eni UK will hold between 30 per cent. and 50 per cent. of the voting rights of Ithaca Energy at Completion, a mandatory offer would normally be required under Rule 9 of the UK Code on Takeovers and Mergers (the "Takeover Code"), however, given that Delek will still hold shares carrying more than 50 per cent. of the voting rights following Completion, the UK Panel on Takeover and Mergers (the "Panel") has granted a dispensation from Rule 9 pursuant to note 5 (b) of Rule 9 under the Takeover Code and no such Rule 9 waiver is required. Class 1 The Combination constitutes a Class 1 transaction for the purposes of the Listing Rules for Ithaca Energy. Ithaca Energy will issue a circular to its shareholders, in due course, in order to convene a general meeting to seek shareholder approval for the Combination and the allotment and issue of the Consideration Shares to Eni UK. In addition, Ithaca Energy will publish and make available a prospectus in connection with the issue of the Consideration Shares. The Profit Before Tax and Gross Assets the subject of the transaction for the year end 31 December 2023 were £444 million and £2,062 million respectively. Lock-up Eni UK's shareholding in Ithaca Energy will be subject to a 180 day lock-up period from admission of the Consideration Shares (subject to customary exceptions). Relationship Agreements and Corporate Governance Eni Relationship Agreement At Completion, Eni will enter into a relationship agreement with Ithaca Energy (the "Eni Relationship Agreement") on substantially similar terms to the Delek Group Limited ("Delek") relationship agreement amended and restated on the date of this announcement with Ithaca Energy (the "Delek Relationship Agreement"). The Eni Relationship Agreement will entitle Eni, for so long as it directly or indirectly holds more than 20% of the Combined Group's issued share capital, the right to appoint two non-executive directors to the Ithaca Energy Board, for so long as it directly or indirectly holds greater than 10% (but not more than 20%) of the Combined Group's issued share capital, the right to appoint one non-executive director to the Ithaca Energy Board, and for so long as it holds greater than 25% of the Combined Group's issued share capital, to appoint one observer to the Remuneration Committee and the Audit and Risk Committee; and appoint one director, or failing which an observer to the Nomination and Governance Committee. From Completion, under the Delek Relationship Agreement, Delek will, for so long as it directly or indirectly holds at least 30% of the Combined Group's issued share capital, and until the later of the proposed CEO nominated by Eni ceases to be the CEO and 3 years from Completion, have the right to appoint three non-executive directors. Eni will be entitled to recommend the nomination of the next proposed CEO of the Combined Group in accordance with the policies and processes of Ithaca Energy's Nomination and Governance Committee, such appointment to take effect from Completion. The Ithaca Energy Board is committed to robust standards of corporate governance and to maintaining a sound framework for the control and management of the Group. As such, the Company is actively recruiting for additional independent non-executive directors to join the Ithaca Energy Board prior to or from Completion. Conditions to Closing Closing of the Combination is subject to, amongst other things: · Ithaca Energy shareholder approval at a general meeting convened pursuant to an FCA-approved circular; · FCA and London Stock Exchange approval of the admission of the Consideration Shares; · satisfaction of certain regulatory approvals in the UK; and · completion of certain pre-sale reorganization steps in relation to the Eni UK assets. Key termination provisions The Business Combination Agreement can be terminated in a number of limited circumstances. Eni UK and Neptune can terminate the Business Combination Agreement if the Ithaca Energy Board changes or withdraws its recommendation, or if Ithaca Energy shareholders do not approve the Combination, or if Ithaca Energy fails to publish the prospectus or circular once it has been approved by the FCA. All parties have customary termination rights for material breaches of certain interim period covenants and in circumstances where a third-party offer is made under the Takeover Code and is recommended by the Ithaca Energy Board. Completion of the Combination is expected to occur in Q3 2024. Ithaca Energy Board Recommendation and Undertakings The Ithaca Energy Board have determined that the Combination is in the best interests of Ithaca Energy based on a number of factors and intend unanimously to recommend that shareholders vote in favour of the relevant resolutions at the shareholder meeting to be held to approve the Combination and the allotment and issue of the Consideration Shares to Eni UK, amongst other things. Each of the members of the Ithaca Energy Board holding Ithaca Energy shares, has irrevocably undertaken that they will vote in favour of the relevant resolutions required to implement the Combination at the shareholder meeting in respect of their own beneficial holdings of Ithaca Energy shares, representing approximately 0.2 per cent. of the existing share capital of Ithaca Energy as at 23 April 2024, being the last practicable date prior to publication of this announcement. Delek has irrevocably undertaken to vote in favour of the relevant resolutions required to implement the Combination at the Ithaca Energy shareholder meeting in respect of its holding of Ithaca Energy shares, representing 88.5 per cent. of the existing share capital of Ithaca Energy as at 23 April 2024, being the last practicable date prior to publication of this announcement. |
Posted at 15/2/2024 07:59 by ashkv Share Price : 129.5pITH share price vs 52 Week low of 123.2p on 12 Feb 24: 5.11% ITH share price vs 52 Week High of 194.6p on 17 Feb 23: -33.45% Brent : $81.50 UK Gas: $60.50 GBPUSD Exch Rate : 1.255 Market Cap GBP : £1,303,495,200 Market Cap USD : $1,635,886,476 Net Debt (FY 23 Trading Update): $572,000,000 Enterprise Value USD (EV) : $2,207,886,476 ITH 2023 Average Production (Bpd) : 70,200 ITH 2022 Average Production (Bpd) : 71,403 ITH Q4 23 Actual Average Production (Bpd) 67,656 EV/Barrel 2023 Average Actual Production: $31,451 EV/Barrel 2022 Average Actual Production: $30,921 EV/Barrel Q4 23 Actual Average Production: $32,634 Decommissioning Costs/Asset Retirement Obligation HY 2023: $1,710,562,000 EV Per Barrel Including Decommissioning Costs-2023 Production Guidance: $55,818 2023 Full Year Dividend Yield: 24.45% Final 2023 Dividend Yield 8.13% Shares Outstanding : 1,006,560,000 |
Posted at 01/3/2023 13:25 by ashkv Windfall tax puts Cambo decision in doubt: IthacaIthaca 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. |
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