UK-based oil and gas producer Energean plc on Wednesday slashed its first-quarter dividend and full-year production outlook following a 41-day halt to production at a gas field offshore Israel due to the Middle East conflict.
Energean suspended production at the Karish platform offshore Israel in early March under orders by the Israeli Energy Ministry. Operations resumed on April 9, after the ministry instructed the company to restore production following the announcement of the U.S.-Iran ceasefire.
The Israeli government’s go-ahead permitted the safe restart and resumption of production and operations at the Energean Power FPSO at the Karish gas field.
However, due to the 41-day halt to production, Energean noted materially lower output and profits for the first quarter of 2026.
“As a direct consequence of the 41-days of production shutdown in Israel between 28 February to 9 April, Q1 2026 financial performance was meaningfully lower than originally anticipated,” the London-listed company said in a regulatory filing today.
“The Board recognises the importance of dividend income to shareholders; however, notwithstanding Energean’s strong financial position and outlook and in keeping with its commitment to shareholder returns, the Board has therefore declared a dividend of 10 US cents/share for Q1 2026,” it added.
To compare, Energean’s dividend for the fourth quarter of 2025 was $0.30 per share.
Due to the production shutdown offshore Israel, Energean’s average group production fell to 114,000 barrels of oil equivalent per day (boed) for the first quarter of 2026, down from 145,000 boed, or by 21%, year-on-year.
As a result, the company revised down its total production guidance for 2026 to 130,000-140,000 boed, down from 140,000-150,000 boed previously expected.
The revised guidance for Group production and Cost of Production “reflects the impact of regional geopolitical events, including the 41-days of shutdown in Israel, together with the associated effects on global commodity prices and the outlook for higher oil prices in 2026, affecting royalties, flux, and purchased oil costs,” Energean said.
By Tsvetana Paraskova for Oilprice.com
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