Ithaca Energy reported record quarterly production of 131 thousand barrels of oil equivalent per day (kboe/d) in the second quarter, underpinning an upgraded dividend guidance range of $500-530 million for 2026, up from $470-520 million.
The North Sea-focused oil and gas producer declared a first interim dividend of $255 million, payable in September, as it shifts to an equal split between interim and final payouts. Adjusted EBITDAX for the first half held at $1.1 billion, in line with the prior year, while net cash flow from operating activities also matched last year's $1.0 billion.
Unit operating costs rose slightly to $18.0 per barrel from $17.5 a year earlier, though full-year guidance was cut to $800-840 million from $820-860 million, pointing to an improved cost outcome of around $18/boe at the midpoint.
Profit for the period swung to $127 million from a $217 million loss in H1 2025, which had been hit by a one-off deferred tax charge tied to the energy profits levy extension.
Rosebank, the North Sea's largest undeveloped oil field, remains on track for first production in the first half of 2027, with the FPSO moored on station in June and post-tax development cost guidance trimmed to below $3.5 per barrel including an eighth well.
Rosebank capex guidance for 2026 was cut to $250-280 million from $280-320 million, reflecting deferred drilling into 2027.
Adjusted net debt fell to $1.0 billion from $1.3 billion at end-2025, with leverage down to 0.49 times EBITDAX after a further €155 million bond tap on its 2031 senior notes.
"Record quarterly production in Q2, continued safe and efficient operations, robust cash generation and disciplined capital allocation have enabled us to reaffirm full year production guidance, reduce operating cost guidance and increase our dividend outlook for the year," said Executive Chairman Yaniv Friedman.
Full-year production guidance of 120-130 kboe/d was reaffirmed, with regulatory approval for Rosebank's first oil schedule still expected by the end of 2026.
Panmure Liberum analyst Ashley Kelty, in a note, said Ithaca’s higher production, stable EBITDAX and lower leverage underpin stronger returns to shareholders and greater strategic optionality. The broker note flagged potential participation in the BP UK asset sale, and explained the company’s increased dividend guidance and liquidity leave it able to pursue M&A or accelerate organic projects.
Kelty also added that Ithaca's strong 2Q26 showing was anticipated given higher commodity prices, so near-term upside depends on execution of Rosebank and upcoming capital-allocation choices.
