EL7.AI
StocksMediumUpdated•Originally published 9 September 2026•Updated 9 September 2026•
2 min read

Energean H1 Profit After Tax Rises 45% to $160 Million as Tax Charge Falls

Key Facts

1Profit after tax rose 45% to $160 million, driven primarily by a lower tax charge.
2First-half production was 124,000 boe/d, while 2026 guidance remained 130,000-140,000 boe/d.
3Free cash flow increased 35% to $250 million as cash capital expenditure declined to $250 million.
4Net debt fell by $97 million during the second quarter to $3.227 billion.

Energean reported a 45% increase in first-half 2026 profit after tax to $160 million from $110 million a year earlier. The increase primarily reflected a decline in the tax charge to $19 million from $64 million after the recognition of $26 million in deferred tax assets in Italy.

Revenue from production activities fell 8% to $743 million from $804 million. A 41-day suspension of Israeli production between February 28 and April 9, together with weaker output from Italy's Cassiopea field, reduced sales volumes, while higher liquids prices partly cushioned the impact.

Group production averaged 124,000 boe/d in the first half, down 10% from 138,000 boe/d. After Israeli operations restarted, output averaged 135,000 boe/d over the first 8 months and exceeded 180,000 boe/d during August, supporting Energean's decision to retain 2026 guidance of 130,000-140,000 boe/d.

Free cash flow rose 35% to $250 million from $185 million, but the increase did not reflect a comparable improvement in operations: operating cash flow declined 14% to $476 million from $555 million. Free cash flow benefited from cash capital expenditure falling to $250 million from $385 million.

Net debt stood at $3.227 billion at end-June, down $97 million from end-March. Total liquidity was $404 million, comprising $321 million of cash and restricted cash and $83 million of available facilities, while Energean declared a second-quarter dividend of 10 US cents per share payable on September 30, 2026.

Energean spent about $267 million on Katlan during the first half, taking cumulative expenditure to more than 60% of the project's $1.2 billion final investment decision amount. The company says first gas remains on track for the first half of 2027, leaving execution of the remaining work and sustained production after the restart as the principal items to monitor.