Greece’s Energean sees higher production and revenues, lower CO2 1H 2021

Greece’s Energean oil and gas company announced on September 2 to the London Stock Exchange and the Tel Aviv Stock Exchange its 1H 2021 results, which were the first ones to fully incorporate the transformational acquisition of Edison E&P, noting that the average working interest production was 44 thousand barrels of oil equivalent (kboed, 72% gas), ahead of full year guidance of 38 – 42 kboed (71% gas), compared to 2.1 thousand barrels in 1H 2020. Revenues increased to $206 million (1H 2020: $2 million), while EBITDAX reached $75 million (1H 2020: negative $8.9 million)

Moreover, 1H 2021 scope 1 and 2 carbon emissions were approximately 18 kg/boe, a significant step towards Energean’s target of achieving net zero emissions ahead of 2050, representing a 19% reduction versus 2020 levels and 73% reduction versus 2019.

“During 1H 2021, Energean delivered excellent operational and financial progress, reflecting the transformational nature of the acquisition of Edison E&P,” Energean CEO Mathios Rigas said. “Production is outperforming guidance, translating into record financial performance and, through successful execution of our gas- and returns-focused strategy, we have achieved a significant milestone in our transformation into a 200 kboed, $2 billion annual revenue generating, sustainable dividend yielding, energy company. In addition, we further strengthened and de-risked our balance sheet by raising the largest ever EMEA energy international high yield bond and remain fully-funded for all projects across our nine countries of operation,” he added.

“Despite continued COVID-19 related challenges, we have delivered solid progress on our flagship Karish gas development project, which remains firmly on track to deliver first gas in mid-2022. There are a number of potential acceleration measures under active consideration and, at 31 August 2021, the workforce on the Karish project was in excess of 1,700, an approximate 70% month-on-month increase,” Rigas said, adding that further growth in Israel will be delivered through Energean’s up to five-well offshore growth programme, with the Stena IceMax drilling rig commencing operations in 1Q-2022. “The programme targets an additional 1 billion boe, which has the potential to double our reserve base with high quality resource volumes that can be quickly, economically, and safely monetised. Globally, gas prices are strong and we are assessing several commercial opportunities to access international markets, as well as the growing Israeli domestic market, if (and when) additional gas resources become available to us.

“In the second half of the year, we look forward to continuing to deliver our key gas development projects in Egypt and Italy, which alongside commencement of the revised Epsilon project in Greece, will provide further, substantial near-term growth and value realisation in the Mediterranean region.” he said.

The Energean CEO reminded that the recently published Intergovernmental Panel on Climate Change  report on the impacts of global warming made for stark reading and emphasized the need for immediate action. “As a business, we have taken full responsibility for our own emissions profile, showcased by publication of our first Climate Change Policy, which outlines the short, medium, and long-term actions we will take as part of our commitment to become a net zero emitter by 2050. In the first half of 2021, we reduced the carbon intensity of our operations by more than 19% versus 2020 levels ; representing a 73% reduction versus our base year of 2019. This is a trajectory we are committed to continuing, and we are investigating all options to accelerate our net zero commitment ahead of 2050, in recognition of the need for urgent and immediate action,” Rigas said.

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