The British oil and gas company working in the North Sea, Ithaca Energy, said on Wednesday that its full year profit dropped to $215.6 million from $1.03 billion last year.
The company noted that its full year result was impacted by a $557.9 million pre-tax impairment charge, or post-tax $154.0 million, principally in relation to the Greater Stella Area and Alba.
Earnings per share (EPS) in US cents were 21.2 compared to 102.1. Adjusted EPS were 36.7 compared to 46.0. For the year ended December 31, 2023, revenue declined to $2.32 billion from $2.60 billion in the previous year.
Ithaca Energy has entered into an exclusivity agreement in relation to a potential transformational combination with substantially all of Rome-based Eni's UK upstream assets including the recently acquired Neptune Energy assets, excluding certain assets but including Eni's carbon, capture, transport, storage and utilization of carbon dioxide (CCUS) and Irish sea assets.
Eni has granted Ithaca Energy exclusivity in respect of the assets the subject of the potential combination for a period of four weeks. Eni will contribute its UK business in exchange for the issuance of new Ithaca Energy shares to Eni, with Eni anticipated to hold between 38% and 39% of the enlarged issued share capital of Ithaca Energy following completion.
Ithaca Energy and Eni have entered into the exclusivity agreement to allow time to separately progress the contractual documentation required in connection with the potential combination.