Ithaca Energy’s Restructuring Plan to Lead to Job Cuts

(Credit: Ithaca Energy)

North Sea oil and gas group Ithaca Energy launched a restructuring process that it expects to lead to job cuts, it said on Wednesday.

The process, which follows the completion of Ithaca's acquisition of Eni's UK assets, is expected to be completed by July 1, it said. It has not disclosed the exact number of jobs that will be affected.

Ithaca bought nearly all of Eni's UK oil and gas producing assets last year in an all-stock deal worth around 754 million pounds ($975.8 million), with an aim to become one of the biggest independent North Sea energy companies.

The deal allowed Ithaca to forecast higher production for 2025. The London-listed company said on Wednesday it expects full-year 2025 output in the range of 105,000-115,000 barrels of oil equivalent per day, above last year's 80,200 boepd.

Its 2024 production was about 14% higher than in the previous year, and Ithaca also declared an interim dividend of $200 million to be paid in April.

On Tuesday, Ithaca also said it would acquire Japan Petroleum Exploration's (Japex) 1662.T North Sea business for $193 million.

Beyond 2025, the group expects to maintain production above 100,000 boepd in the medium-term from its existing producing asset base and the start-up of the Rosebank development in the North Sea.

Its 2024 profit after tax fell to $153.2 million from $292.6 million a year earlier, largely due to a higher tax burden in 2024.

Last year the UK's Labour government increased the energy profits levy, raising the headline tax rate on oil and gas activities to 78%, one of the highest rates globally.

In 2025 Ithaca expects to make cash tax payments in the range of $235 million to $265 million, primarily driven by the profits levy.

(Reuters - Reporting by Arunima Kumar in Bengaluru; Editing by Rashmi Aich and Jan Harvey)