Energean increases annual net debt forecast for expansion plans in Israel

Eastern Mediterranean-focused gas producer Energean raised its annual net debt forecast on Wednesday, as the company ramps up spending on major projects in Israel and Croatia amid geopolitical disruptions.

The London-listed firm secured $4 billion in Israeli gas offtake contract during the first half of this year. This brings its contract pipeline up to $20 billion for the next 20 years.

Energean’s production has taken a significant hit since the firm stopped operations at its floating production storage and loading facility located off Northern Israel in June, due to the geopolitical tensions in the Middle East.

The company expects a net annual debt of between $3.1 and $3.2 billion. It had previously estimated net debt between $2.9 billion to $3.1 billion.

Energean increased its capital expenditures for Israel's development and production on Wednesday. The total annual expenditures for the group have now risen to between $580 million and $620 million, up from the previous estimate of $480 to $520 millions.

(source: Reuters)