FX.co ★ Ithaca Energy FY Profit Declines

Ithaca Energy PLC has disclosed a full-year profit of $215.6 million for 2023, a significant decrease from the previous year's $1.03 billion. The company's annual performance was substantially affected by a pre-tax impairment charge of $557.9 million, translating to a post-tax of $154.0 million. This impairment charge is specifically associated with the Greater Stella Area and Alba. The reported earnings per share were 21.2 cents compared to the previous year's 102.1 cents, while the adjusted EPS was 36.7 cents versus 46.0 cents in the preceding year.

During the year ending 31 December 2023, the company's revenue fell to $2.32 billion from $2.60 billion of the previous year.

On another note, Ithaca Energy has secured an exclusivity agreement regarding a potential transformative merger with a substantial proportion of Eni S.p.A.'s UK upstream assets. These assets include the recently purchased Neptune Energy assets, but exclude certain assets like Eni's CCUS and Irish sea assets. Eni has granted Ithaca Energy exclusive rights to the assets under potential amalgamation for four weeks. In return for its UK business, Eni will receive newly issued Ithaca Energy shares. Post-completion, it is expected that Eni will own between 38% and 39% of the total issued share capital of Ithaca Energy.

To further this merger, Ithaca Energy and Eni have entered an exclusivity agreement that will provide the necessary time to advance the required contractual documentation in relation to the potential combination.