Oil and gas producer Ithaca Energy (ITH.L) raised its 2026 dividend forecast on Wednesday, buoyed by robust cash generation and growth in half-year production, as it laid out details on when a key project in the North Sea could start producing.
Shares in Ithaca, a major producer in the North Sea, jumped nearly 7% in early trading after it said it expects to pay out between $500 million and $530 million in dividends this year, compared to its previous guidance of $470 million to $520 million.
It didn't say what the new figure would mean in terms of dividends per share.
Ithaca has focused on acquisitions and strengthening its balance sheet, as North Sea oil producers faced political questions over whether further development in the area will be permitted, although Britain's new government has hinted at a "pragmatic" approach.
Formal decisions could come in the next few weeks.
If it receives political and regulatory approval, Ithaca said its key Rosebank development project, to the north-west of the Shetland area north of Scotland, will enter its first production window – or when it expects to produce for the first time – in the first half of 2027.
Its earlier expected window was 2026/2027.
Ithaca has invested $3.8 billion into the project with rival Equinor (EQNR.OL).
ROSEBANK DEVELOPMENT PROGRESSING
"With Rosebank progressing towards first production, Cambo advancing through key development milestones and continued investment in high-return, short-cycle opportunities across our producing assets, we remain focused on maximising long-term value creation and delivering attractive, sustainable returns for our shareholders," Executive Chairman Yaniv Friedman said in a statement.
Ithaca reduced its capital cost expectations for Rosebank to between $250 million and $280 million in 2026, from $280 million to $320 million expected previously, as drilling activity and associated costs shift to next year.
It also reported total production of 128,000 barrels of oil equivalent per day (boed) for the six months ended June 30, up from 124,000 boed reported a year ago, strengthened by contributions from its Cygnus and Seagull gas fields.
Adjusted earnings before interest, taxes, depreciation, amortization, and exploration expense stood at $1.1 billion, similar to last year.
