Ithaca Energy (LSE:ITH) said its FY 2026 dividend is now expected to be over $500m as it reported a return to quarterly profit of $67m for the three months to 31 March, compared with a loss of $259m in Q1 2025.
Adjusted EBITDAX was $571m in Q1 2026 (Q1 2025: $653m), net cash from operating activities was $423m (Q1 2025: $435m), adjusted net debt fell to $1,119m at 31 March and available liquidity rose to $1,599m.
Average production was 126 kboe/d in Q1 2026 (Q1 2025: 127 kboe/d), with severe weather affecting output in January and early February but management reaffirming FY 2026 production guidance of 120-130 kboe/d.
The group extended its hedge book (61.9 mmboe hedged through to end‑2028), completed a 50% farm‑in to the Tobermory licences and agreed a 45% farm‑down of Fotla to Harbour Energy to advance those developments towards FID.
Operating costs rose to $207m and unit operating expenditure was $18/boe (Q1 2025: $17/boe), producing‑asset capex was $129m and Rosebank capex $40m, while the Rosebank FPSO sailed from Dubai and drilling commenced despite a rig handling incident that put the rig temporarily off‑hire.
"We now anticipate that our FY 2026 dividend will likely move to the upper end of our guidance range at over $500 million, with shareholders participating in the upside exposure to strengthened cash flow generation," said Yaniv Friedman, Executive Chairman.
Management reaffirmed all previously stated FY 2026 guidance, including net operating costs of $820-860m, producing asset capex of $600-700m, Rosebank capex of $280-320m, cash tax of $290-340m and a 30% post‑tax cash flow distribution policy targeting $470-520m of dividends.
