Eastern Mediterranean-focused gas producer Energean raised its annual net debt forecast on Wednesday, as the company ramps up spending on major projects in Israel and Croatia amid geopolitical disruptions.
The London-listed company secured $4 billion worth of Israeli gas offtake contracts in the first half of the year, bringing its contract pipeline to $20 billion over the next two decades.
Energean’s production had taken a considerable hit after the firm halted operations of its power floating production storage and offloading located offshore Northern Israel in June due to geopolitical escalation in the Middle East.
The company, which aims to expand further in Israel, Egypt and enter West Africa, expects annual net debt between $3.1 billion and $3.2 billion. It previously expected net debt of between $2.9 billion and $3.1 billion.
Energean also raised its development and production capital expenditure for Israel on Wednesday, pushing the total annual expenditure for the group to $580 million to $620 million from a previous expectation of $480 million to $520 million.
(Reporting by Yamini Kalia in Bengaluru; Editing by Mrigank Dhaniwala)