Energean, a London-listed independent energy company, reported a decline in its financial and operational results for the first nine months of the year. This downturn was attributed to a combination of planned maintenance activities, lower crude oil prices, and a brief, temporary suspension of production in Israel during June. This shutdown was a precautionary measure following Israeli military strikes on Iran and the potential for reprisals from Tehran.

Financial Performance

Revenues for the first nine months decreased by 5% year-on-year to $1.29 million. Similarly, the company's EBITDAX (Earnings Before Interest, Taxes, Depreciation, Amortization, and Exploration Expense) fell by 7% to $828 million over the same period. The company's share price reflected these challenges, dropping by approximately 2.3% in early trading. Details on full-year profits are to be provided in the company's year-end results.

Operational Performance

Average production declined by 3% compared to the same period last year, reaching 151,000 barrels of oil equivalent per day (boepd). A significant majority of this production, 85%, was natural gas. The primary cause for the production dip was the temporary suspension in Israel. However, following the shutdown, output recovered and ended the third quarter 35% higher than the first quarter's average, at 176,000 boepd. Despite the fluctuations, the company's full-year production guidance remains unchanged, set between 145,000 and 155,000 boepd.

Strategic Developments and Shareholder Returns

The company announced several significant strategic developments during the third quarter. These include:

• A deal with ExxonMobil that could lead to the first offshore well drilled in Greece in over 40 years.
• Plans to construct a new gas pipeline connecting Israel and Cyprus.
• Participation in Chevron’s Nitzana onshore gas pipeline project, which will connect Israel to Egypt.

In terms of shareholder returns, Energean declared a third-quarter dividend of 30 US cents per share. This is in addition to the $166 million already returned to shareholders over the first nine months of the year.