Dash for gas brings Energean boss cash

The company’s main attraction is its flagship Karish project, which has locked in contractual sales and looks set to transform the scope of the business. The project’s floating production, storage and offloading vessel has arrived in Israel after pandemic-related delays, with first gas expected in the third quarter of this year after three to four months of commissioning. Energean forecasts total production of 60,000-70,000 boepd (barrels of oil equivalent per day) for the 2022 financial year, up from 41,000 boepd in FY2021, and is aiming to hit 200,000 boepd in the medium term.

In the latest trading update, for the first quarter to 31 March, revenue was up by 80 per cent to $171mn (£139mn) and earnings before interest, tax, depreciation, amortisation and exploration expenses hit $90mn, up 172 per cent. Total production came in at 36,000 boepd for the four months to 30 April, within expectations.

On 23 June, chief executive Mathios Rigas sold £55.3mn-worth of shares through his company Growthy Holdings, perhaps wanting to lock in profits from the booming share price. Chair Karen Simon, meanwhile, picked up £376,000-worth of shares on the same date. Both transactions were completed at 1,106p a share.

The shares sold by Rigas went to institutional investors through an accelerated bookbuild and represented around a quarter of his holding. He still owns a stake of 8.5 per cent and the company said he “remains fully committed to the business and is confident in the outlook for Energean”.

Peel Hunt analysts said in a recent research note that the company “is in the middle of delivering a transformational year”. With Karish production on track for the third quarter and the shares trading at just five times consensus forward earnings, we also remain bullish.