Energean production grows 200% y-o-y in 2023

2023 proved to be transformational year for Energean, according to its CEO Mathios Riggas, who said production grew 200% year-on-year, generating full-year revenues of $1,420 million.

“2023 was another transformational year for Energean,” said Rigas. “We grew production by 200% year-on-year, reached c. 150 kboed peak production and brought NEA/NI online on time and on budget. Despite the challenging geopolitical environment, all of our operations were managed without any impact from the regional conflicts.”

Since the year-end, he added, the start-up of Karish North and the second gas export riser means the company is now able to utilise the FPSO’s maximum gas capacity and its production guidance illustrates the next step towards its near-term target of 200 kboed.


“We also had a strong year financially, generating full-year revenues of $1,420 million and adjusted EBITDAX of $931 million,” he continued. “As a result, we have reduced our leverage ratio by 50% to 3x. These strong results coupled with our long-term gas contracting strategy, which underpins our dividend policy, has seen us return approximately $370 million (210 US$ cents/share) to shareholders since our inaugural payment in Q3 2022.”

Rigas revealed that Energean is looking beyond its near-term targets and this is reflected in its new Morocco country entry project and in Italy, “where we see a new era for the industry following the annulment of prohibitive laws, thereby releasing previously restricted acreage”.

He added, “We also remain alert to opportunities that fit our key business drivers (paying a reliable dividend, deleveraging, growth, and our commitment to Net Zero) and can move quickly to take advantage when they arise”.

On sustainability, Energean is contributing to Israel’s transition away from coal as well as its, and the wider region’s, energy security – helping to meet the growing demand for natural gas, Rigas said. “We further reduced our emissions intensity and have now delivered an 86% reduction from our original 2019 baseline. We are also now rated AAA by MSCI. Our Prinos Carbon Storage (“CS”) project will add another pillar and help decarbonise heavy industries in Southeast Europe, in line with our commitment during COP28.”

Energean’s CEO concluded: “Our ongoing success is due to the entire global team working together during what has been a challenging period in the East Mediterranean. I am proud to lead such a diverse and dedicated team and as we continue to grow, our commitment to integrity, corporate sustainability and operational excellence will remain.”

Operational Highlights

  • First major step-up in production achieved.
    • FY23 production of 123 kboed (83% gas), up 200% year-on-year, primarily as a result of a full-year of production from Karish (Israel).
    • Day-to-day production in Israel continues to be unimpacted by the ongoing geopolitical developments.
    • FPSO uptime (excluding planned shutdowns) was 99%[1] in Q4 2023.
  • Key growth projects complete.
    • The NEA/NI development (Egypt) was completed in December 2023.
    • Karish North and the second gas export riser were brought online in February 2024.
  • Confirmed year-end 2P reserves of 1,115 mmboe, stable year-on-year before produced 2023 volumes and demonstrating material reserves life of around 19 years[2].
  • New gas contract signed in Israel in February 2024.
    • Adds circa $2 billion of revenues over the life of the contract and is in line with the Group’s strategy to secure long-term reliable cash flows.
  • Morocco country entry through farm-in to Chariot Limited’s Lixus and Rissana licences, expected to complete imminently.

Financial Highlights

  • Strong financial performance, underpinned by a full-year of production from Karish.
    • 2023 sales and other revenues of $1,420 million, representing a 93% increase (2022: $737 million).
    • 2023 adjusted EBITDAX of $931 million, representing a 121% increase (2022: $422 million).
    • 2023 profit after tax of $185 million was a significant improvement versus the previous year (2022: $17 million). Profit after tax was negatively impacted by $100 million of deferred tax charges.
    • Group cash as of 31 December 2023 was $372 million (including restricted amounts of $26 million) and total liquidity was $607 million.
    • 50% reduction in Group leverage to 3x (FY 2022: 6x).
    • No immediate debt maturities following Energean Israel's bond refinancing in July 2023.
  • Q4 2023 dividend of 30 US$cents/share declared on 22 February 2024 and scheduled to be paid on 29 March 2024[3].
    • A total of 210 US$cents/share (approximately $370 million), including the Q4 2023 dividend1, returned to shareholders since maiden payments began.
  • 42% year-on-year reduction in carbon emissions intensity to 9.3 kgCO2e/boe and an 86% reduction since our original baseline year[4], ahead of schedule with the Group’s stated 2019-2025 target.


  • 2024 production guidance reiterated at 155 – 175 kboed (production to end-February was 144 kboed; 82% gas), a significant step up towards Energean’s near-term targets.

Production is second-half weighted due to:

    • Peak gas demand during the summer driving maximum gas output from the Energean Power FPSO.
    • Cassiopea (Italy) first gas expected in the summer of 2024.
  • Focused on backfilling the Energean Power FPSO and meeting growing gas demand in Israel and the region.
    • The start of the Katlan (Israel) development will extend the gas production plateau and has potential for exports.
  • New areas of development underway to grow the current business base:
    • Morocco farm-in expected to complete imminently; appraisal well planned for Q3 2024.
    • In March 2024, a court ruling annulled the PITESAI plan and its associated acts in Italy. This ruling[5] has unlocked previously restricted acreage in addition to those already identified and highlighted by Energean.
  • Quarterly dividend payments intended to be declared in line with previously communicated dividend policy.
  • Evaluating all opportunities, with continued capital discipline, that are dividend accretive, meet Energean’s deleveraging targets, achieve its growth objectives and contribute to the Group’s Net Zero target.

[1] Uptime is defined as the number of hours that the Energean Power FPSO was operating; the Q4 2023 figure excludes the scheduled 6-day shutdown that occurred in December.

[2] Based upon mid-point of 155-175 kboed 2024 production guidance.

[3] Payment date is stated as the date upon which payment is to be initiated by Energean.

[4] Original baseline year was 2019. In 2023, this was revised to 2022.

[5] Unless successfully appealed by the Ministry.

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