Energean, a gas producer, has cut its output and dividends due to the Mideast conflict.

?Eastern ?Mediterranean-focused gas producer Energean cut its 2026 production forecast and dividend on Wednesday after a 41-day shutdown of its Israeli operations hammered its first-quarter results.

After Israel's Ministry of Energy lifted the directive that had halted production since late February, the company's floating power production vessel resumed its operations on 9 April. The output returned to full capacity in 48 hours. Energean is a major natural gas producer in Israel. Its Israeli gas fields, and the production vessel that serves them, have been shut down twice over the past year due to conflict in the Middle East. Energean has increased investments and explored deals in a bid for a boost to production and expansion amid the disruption. Mathios RIGA, CEO of Energean said that the company's organic growth outlook was compelling. "We have two exploration catalysts in Greece and Egypt in the near term," he added. Energean is also on schedule to produce first gas by 2027 in Israel and Croatia. Energean has partnered with U.S. Oil Major ExxonMobil, and Greece's largest oil refiner Helleniq Energy in order to explore for natural gas in the Ionian Sea. This is Greece's first off-shore exploration drilling in over 40 years.

Peel Hunt analysts stated that "Energean’s operational recovery, its stable balance sheet and advancing growth projects underpin the outlook." The company's natural gas and oil assets are located in Israel, Greece, UK, and other Mediterranean countries. It now expects a full-year production of 130 to140 thousand barrels equivalent to oil per day (boed), compared to the previous forecast of between 140 to 150 thousand boed. Production outlook for Israel has been reduced from 108 to114 thousand boed to 98 to104 thousand boed.

Energean’s first-quarter output?fell by 21%, to 114 000 boed. The?net profits were down 65%. Dividends were reduced to 10 U.S. Cents per share, from 30 U.S. Cents the previous quarter. (Reporting and editing by Subhranshu sahu in Bengaluru, and Hugh Lawson.)

(source: Reuters)