Energean's $241 million asset charge curbs rise in annual profit

(Reuters) - UK-based gas producer Energean reported a 2% rise in annual profit after tax on Thursday, but flagged impairments of $241 million relating to assets in Egypt, Morocco and Greece.

Most of Energean's production is in Israel and the company said increasing demand for electricity and plans to phase out of coal substantially raised Israel's gas demand, adding that its production in the country remains unaffected by the ongoing conflict in the region.

Energean aims to double its production in the coming years, primarily by developing new prospects in Israel, including the Katlan field, where the gas producer expects to start production in the first half of 2027.

A deal for Carlyle to buy assets from the company is at risk of collapse. The gas producer, however, said its dividend programme will continue irrespective of the deal's outcome.

"The overall shape and scale of the business is up in the air, as today marks the longstop date for the disposal of some assets to the Carlyle Group, with no indications of whether this will be extended or (the) deal will be terminated," said Ashley Kelty, analyst at Panmure Liberum.

Energean's shares fell 1.7% to 826 pence in London trade after the results.

The Eastern Mediterranean-focused firm reiterated its outlook for 2025 from continuing operations and had said in January that its 2025 production is weighted towards the second half of the year.

The company posted a profit after tax of $188 million for the year ended December 31, 2024, up from $185 million in 2023.

(Reporting by Anandita Mehrotra and Raechel Thankam Job in Bengaluru; Editing by Sumana Nandy and Susan Fenton)