Ithaca profits slump on UK tax levy; Sees lower output in 2024

(Sharecast News) - North Sea oil and gas producer Ithaca Energy on Wednesday reported a slump in annual profits and forecast weaker output, blaming the UK government's energy tax and project impairments. Full-year profit plunged to $215.6 from $1.03bn. Production came in at 70,239 barrels of oil equivalent per day (boe/d) in 2023, lower than the previous year's record 71,403 boe/d but in line with guidance of between 68,000 and 74,000 boe/d.

Ithaca said it expected 2024 production in a range of 56-61 kboe/d reflecting a reduction in investment in near-term projects as a direct result of the energy profits levy including deferred or cancelled projects at the Greater Stella Area, Montrose Arbroath Area, Elgin Franklin Area and Alba fields.

"The energy profits levy continues to have a direct impact on investment in the UK North Sea, with projects across our operated and non-operated deferred or cancelled. The extension of the levy by a further year to a sunset date of March 2029, highlights the continued fiscal uncertainty our sector faces," said interim chief executive Iain Lewis.

Reporting by Frank Prenesti for Sharecast.com