Eastern Mediterranean-focused gas producer Energean cut its 2026 production forecast and dividend on Wednesday after a 41-day shutdown of its Israeli operations hammered its first-quarter results.
The company's power floating production vessel resumed operations on April 9 after Israel's Ministry of Energy lifted a directive that had suspended production since late February, with output returning to full capacity within 48 hours.
Amid conflict across the Middle East, Energean, a major producer of natural gas in Israel, has seen its Israeli gas fields and the production vessel serving them shut down twice in the last year. It has been increasing investments and exploring deals in a bid to lift output and expand operations amid the disruption.
"Our organic growth outlook is compelling with two near-term exploration catalysts across Greece and Egypt," CEO Mathios Rigas said in a statement, adding that Energean's development projects in Israel and Croatia remain on track for first gas in the first half of 2027.
Energean is partnering with U.S. oil major ExxonMobil XOM.N and Greece's biggest oil refiner Helleniq Energy HEPr.AT to explore for natural gas in the Ionian Sea, Greece's first offshore exploration drilling in 40 years.
"Energean's operational recovery, a stable balance sheet, and advancing growth projects underpin the outlook," Peel Hunt analysts said.
The company, which operates natural gas and oil assets across Israel, Greece, the UK and other Mediterranean regions, now expects full-year output of 130 to 140 thousand barrels of oil equivalent per day (boed), down from a previous forecast of 140 to 150 thousand boed, with the Israel production outlook reduced to 98 to 104 thousand boed from 108 to 114 thousand boed.
Energean's first-quarter production fell 21% to 114 thousand boed, with net profit down 65%. It declared a dividend of 10 U.S. cents per share for the quarter, down from 30 cents in the previous quarter.
(Reuters - Reporting by Yamini Kalia in Bengaluru; Editing by Subhranshu Sahu and Hugh Lawson)
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