Ithaca Energy posts increase in annual earnings

Ithaca Energy reported a 160 per cent rise in 2012 earnings on Tuesday as the North Sea oil and gas company benefit from strong production, increased exporter and higher prices.

Ithaca Energy reported a 160 per cent rise in 2012 earnings on Tuesday as the North Sea oil and gas company benefit from strong production, increased exporter and higher prices.

Net earnings came to $93.4m for the year, up from $35.9m in 2011, as cashflow from operations increased by 50% to $90.3m from $60.2m.

Average realised oil prices came to $112.76 per barrel compared to $111.46 the prior year.

Net proved and probable reserves grew to 51.9m barrels of oil equivalent (MMboe) at year end from 50.3 MMboe a year earlier.

The Athena field in the North Sea, the company's third major development, delivered robust performance as it produced dry oil at a gross daily rate of 10,000 to 11,000 barrels of oil per day.

Another milestone for the group last year was the acquisition of Valiant Petroleum, which is anticipated to be highly accretive, increasing production, reserves and cashflow from operations.

"These strong results together with the announced Valiant acquisition demonstrate the company's ability to execute upon its strategy for growing shareholder value though the delivery of development and acquisition led growth," Chief Executive Officer Iain McKendrick said.

Ithaca estimates net export production to be in excess of 6,500 barrels of oil equivalent per day (boepd) this year.

Shares rose 1.12% to 112.50p at 09:20 Tuesday.

RD

Recommended

Share tips of the week – 28 January
Share tips

Share tips of the week – 28 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
28 Jan 2022
Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Amazon halts plans to ban UK Visa credit card payments
Personal finance

Amazon halts plans to ban UK Visa credit card payments

Amazon has said that it is to shelve its proposed ban on UK customers making payments with Visa credit cards.
17 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022