Eastern Mediterranean-focused gas producer Energean posted a 45 per cent jump in first-half profit on Wednesday helped by a lower tax charge in Italy, and said production had bounced back following a war-driven shutdown in Israel that cut its half-year output.
The independent oil and gas producer has been seeking to reduce its reliance on its flagship gas fields offshore Israel — where production has been repeatedly disrupted by regional conflict — by expanding in Egypt and pursuing deals in West Africa.
Reuters reported last month that Energean was in exclusive talks to buy some of BP's upstream oil and gas assets in Egypt, according to two sources involved in the process.
It has also agreed terms to merge three Egyptian concessions, including its flagship Abu Qir licence, into a single one with better fiscal terms, the company said on Wednesday. It has pledged an initial $150 million over four years that it expects will unlock new exploration acreage.
Energean shares rose 5.5 per cent to 835p by 10:35 GMT.
For the six months through June, Energean's production fell 10 per cent to 124,000 barrels of oil equivalent per day, with output in Israel, its biggest operating region, down seven per cent to 87,000 boepd.
But the company, which has seen its Israeli gas fields and the production vessel serving them shut down twice since 2025, said production had recovered strongly following the restart of operations in Israel in April and retained its full-year production guidance of 130,000 to 140,000 boepd.
Energean reported a profit after tax of $160 million for the half year, up from $110 million a year earlier, primarily helped by the recognition of previously unrecognised deferred tax assets in Italy.
Stronger Brent crude prices also helped lift liquids revenue, which includes sales of oil and other hydrocarbons, by 14 per cent to $267 million.
Analysts at Jefferies and Peel Hunt said they believed Energean was well positioned for growth in the coming year, with the Katlan project in Israel on track for first gas in the first half of 2027, capital spending tapering off, and its Egyptian gas concessions being consolidated.
(Reporting by Ankita Bora in Bengaluru and Shadia Nasralla in London; Editing by Jochelle Mendonca, Aidan Lewis)