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Highlights
- The leading North Sea exploration and production business, Ithaca Energy, is all set to go public this year.
- The revenues generated by the company have doubled in Q1 2022, going up from $344.6m last year to $744.6m.
The leading North Sea exploration and production business, Ithaca Energy, is all set to go public this year. Israel-based energy company Delek Group, which is the parent company of Ithaca Energy, has announced that the IPO will be launched on the London Stock Exchange as soon as possible.
Ithaca Energy’s IPO plans
Founded in 2004, the North Sea oil and gas operator Ithaca Energy majorly focuses on the production, evaluation, and development activities in the North Sea. After several high-profile deals, which include Summit Exploration, Marubeni, and the latest Siccar Point Energy, Ithaca Energy is on the way to becoming one of the biggest North Sea operators.
Following the release of its Q1 results, Delek Group has declared that the recently acquired Siccar Point’s operations would be merged with the Ithaca Energy, and all its acquired assets would be enhanced and developed further while preparing for the 2022 IPO.
The group believes that Ithaca’s IPO would help in further expansion of the overall business, leading to significant value creation for the group’s shareholders. Even though the targeted market valuation of the company is not known yet, Ithaca’s projected EBITDAX would be around $2 billion this year with the closing of the Siccar Point deal.
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Ithaca’s Q1 Results
On 26 May 2022, Ithaca Energy released its results for the first quarter of 2022. On average, 70.5 thousand barrels of oil have been produced by the company per day, as compared to 65 kboe/d in Q1 last year. The operating costs per unit stood at $19 per barrel.
As compared to Q1 last year, the revenues generated by the company have doubled, going up from $344.6m to $744.6m. The profit-before-tax of the company has also surged significantly from $61.5m to $874.6m. With the increase in production and revenues, the net debt of the company has gone down from $1.07 bn in Q1 2021 to $703 million in Q1 2022.
By Q3 2022, the Abigail field is all set to produce its first oil, while production will start next year at the company’s Captain EOR stage 2 scheme. In Q1, the Capex of the company stood at $84 million (excluding assets worth $333m from Marubeni). During the next three years, Ithaca Energy is planning a capex of around $400m per year.
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Bottomline
As the commodity prices are rapidly rising, energy IPO investors are closely watching the oil and gas companies going public at this time. Several energy firms, like Neptune Energy, are also planning to go public soon.
Ithaca Energy is currently concluding two deals, which include the Siccar Point deal and the Summit Exploration deal. The market valuation targeted by the company hasn’t been revealed yet, and other important details like the date of listing and price band have also not been disclosed.
Therefore, more information is expected to be disclosed soon and can be referred from the company’s website.
