Ithaca Energy (IAE) has pushed back first production from its all-important Greater Stella Area (GSA) oil project for the second time in four months. First hydrocarbons are now expected sometime in "mid-2015", compared with earlier guidance of "the end of 2014" and, before that, "mid-2014".
The North Sea oil group appeared to blame the most recent delay on oil services group Petrofac (PFC), whose construction of topsides equipment - the surface deck of the offshore oil platform - has advanced more slowly than planned.
Les Thomas, Ithaca’s chief executive, admitted the setback was "clearly disappointing" but said the incremental cost to the company should be minimal. Ithaca's funding position should also not be materially impacted, according to the company.
Broker Westhouse Securities trimmed its target price to 190p a share from 200p but maintained its buy rating and highlighted an upcoming flow test from the third GSA well as a potential positive share price catalyst. Results from the well are expected at the end of June.
