(Alliance News) - Ithaca Energy PLC on Wednesday said that its production growth in the first quarter was strong despite a fall in oil and gas prices, and reaffirmed its guidance for the rest of the year.

The North Sea oil and gas operator said its pretax profit dropped to USD371.6 million from USD861.7 million a year prior. This was due to the introduction of the energy profits levy by the UK government which, from November 17 last year, applied a 35% levy on oil and gas company profits.

Revenue similarly decreased to USD664,317 from USD740,159 from the previous year, which the company said was "principally due to changes in overlift and underlift positions relative to Q1 2022" which was offset by higher production in this quarter from acquisitions made in 2022.

The company's adjusted earnings before interest, tax, depreciation and amortization on March 31 was up by 9.3% to USD518.1 million from USD474.2 million the previous year. Ithaca said this was driven by higher production despite lower average oil and gas prices.

Adjusted net income was slightly down at USD158.4 million from USD161.3 million, and net debt jumped to USD890.0 million from USD703.1 million the previous year.

The company produced 75,300 barrels of oil equivalent per day, ahead of guidance of between 70,000 and 72,000 boe/d. This was up from 70,500 boe/d produced at this point last year. Realised oil and gas prices were USD83 per barrel, down from USD100 per barrel at the same point last year.

Ithaca's operating costs stood at USD137 million or USD20.3 boe/d, which was up from USD18.9 boe/d.

Looking forward, the company said it reaffirmed its previously provided guidance ranges with production guidance of between 68,000 and 74,000 boe/d, operating costs between USD560 and USD630 million, and capital cost between USD400 and USD460 million; all remaining the same.

Chief Executive Officer Alan Bruce said: "We remain focused on delivering safe and environmentally responsible operations as we execute our value-adding near term developments such as Captain EORII, K2 and infill drilling at Alba."

Ithaca Energy was trading 0.1% higher at 152.20 pence in London on Wednesday.

By Will Neill, Alliance News reporter

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