London-listed exploration and production company Energean has announced its half-year results for 2025, reporting a significant increase in profit despite facing a temporary production suspension in Israel and a decline in sales revenue.
The company's profit after tax for the six months ending June 30 increased by 24 per cent to $110 million, compared to $89 million in the same period in 2024.
This increase in profit was achieved despite a seven per cent decrease in sales revenue, which fell to $804 million, and a five per cent drop in average daily production to 138 kboed (thousand barrels of oil equivalent per day).
The company explained that the lower revenue was a result of a planned shutdown for essential works and a two-week suspension of production in Israel in June due to geopolitical factors.
The increase in profit was primarily driven by zero impairments in the current period, compared to a $79 million impairment of exploration and evaluation assets in the prior year.
Energean CEO Mathios Rigas commented on the company’s performance, stating that the business has remained resilient despite external pressures. He highlighted the strength of the company’s core operations, noting that Group production in August alone reached 178 kboed, which showcases a strong summer demand for its gas in Israel.
The company has also secured over $4 billion in new, long-term gas contracts so far this year, bringing the total value of contracted gas to approximately $20 billion for the next 20 years.
Looking ahead, the company said it remains focused on reliable production in the Israeli domestic market, which serves as the bedrock of its cash flow. It is also actively pursuing export opportunities to boost future sales.
Outside of Israel, Energean is advancing key projects, including the Katlan development, which is progressing on schedule for first gas in H1 2027. The company also sanctioned the Irena development offshore Croatia and received the first tranche of grant funding for its Prinos carbon storage project in Greece.
Despite the strong profit result, the company has lowered its full-year 2025 production guidance from 155-165 kboed to 145-155 kboed, a direct result of the temporary suspension in Israel and a deferral of commissioning for a second oil train.
However, it also lowered its cost of production guidance. The company’s financial strategy remains centred on deleveraging and returning capital to shareholders, with a $625 million bond redemption planned for September 21, 2025.