By Christian Moess Laursen

Shares in Ithaca Energy jumped after the British oil-and-gas producer declared a $200-million special dividend following its merger with Italian energy giant Eni's U.K. assets and a recent $2.25-billion refinancing.

Shares were up 9.2% at 1.09 pounds in Thursday morning trading in London, paring the year-to-date loss to 24%.

The North Sea company said the special dividend--to be paid on Dec. 20--supports its full-year dividend target of $500 million.

"Our increased scale of operations and enhanced cash flows support the group's continued growth aspirations and material distributions to shareholders," Chairman Yaniv Friedman said.

Ithaca's $931-million merger deal with Eni's U.K. assets, which completed last month, meant the company is now the second-largest U.K. North Sea oil-and-gas producer. Eni holds a 38.5% of the combined group.

The company also said its Rosebank project is progressing on track with first production scheduled in 2026-27. The field, which was greenlit in September last year, is currently subject to a court case involving challenges by environmental groups against the U.K. government's approval.

In the third-quarter update, Ithaca said it remains on track to meet its full-year production targets of between 100,000 and 110,000 barrels of oil-equivalent a day. Production is set to reach peak rates of above 120,000 BOE a day in the fourth quarter.

Last month, the company completed a $2.25-billion refinancing, bolstering its balance sheet significantly and providing it with cash to pursue its growth ambitions, it said Thursday.

"The group is ideally positioned to create value both in the U.K. and through international diversification, Chief Executive Luciano Vasques said.

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

November 21, 2024 05:00 ET (10:00 GMT)

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