Energean Israel 9M 2025 results: revenue $845.4 million, net profit $206.3 million
Energean Israel Limited has posted unaudited interim numbers for the nine months to 30 September 2025. Revenue came in at $845.4 million, down 13.3% year-on-year, and net profit was $206.3 million, down 30.6%. The business remains profitable and cash generative despite a brief, government-ordered shutdown in June and lower liquids volumes.
Here are the headline figures you’ll want to pin:
| Metric (9M 2025) | 9M 2025 | 9M 2024 |
|---|---|---|
| Revenue | $845.4 million | $974.9 million |
| Gross profit | $412.1 million | $533.0 million |
| Operating profit | $404.1 million | $520.1 million |
| Net profit | $206.3 million | $297.4 million |
| Operating cash flow | $464.0 million | $698.1 million |
| Cash and cash equivalents | $160.3 million | $255.6 million* |
| Borrowings (non‑current) | $2,701.9 million | $2,594.2 million (FY24) |
*9M 2024 cash shown for comparison.
What drove the earnings step-down?
Gas sales generated $608.8 million on 4.0 bcm of volumes (4.2 bcm in 9M 2024). Hydrocarbon liquids contributed $236.6 million on 3,654 kbbl, down from 4,310 kbbl. Prices are not disclosed, but the volume declines alone explain much of the revenue fall, especially on liquids.
Cost of sales eased to $433.3 million from $441.9 million. Notables inside the cost line: royalties dropped to $149.6 million (from $172.5 million), while depreciation and depletion rose to $190.4 million (from $181.0 million), consistent with a larger asset base. Admin costs nudged up to $15.8 million. There was a $2.0 million impairment tied to the expiry of Block 21.
Below operating profit, finance costs remained heavy at $126.7 million, and there was a $13.5 million net FX loss. Tax was $61.8 million, reflecting ongoing profitability of Israeli operations.
Cash flow, dividends and equity: the moving parts
Operating cash flow was $464.0 million, lower year-on-year due to the profit step-down and a $129.6 million tax payment. Investing outflows were $285.5 million, mainly Katlan development spend. Financing outflows were $178.0 million after debt transactions and dividends.
Energean Israel paid $95.9 million of dividends during the period and a further $33.19 million in October 2025. Despite those returns, equity strengthened to $374.0 million (from $241.5 million at FY24) as retained earnings rose. The hedging reserve swung to a positive $21.8 million, reflecting effective cash flow hedges on Katlan currency exposure.
Production, operations and the June suspension
The Karish and Karish North fields continued to produce without disruption apart from a government-mandated pause between 13 and 25 June 2025. Operations resumed safely per instructions. Post period-end, a ceasefire was announced in October 2025. Management continues to frame the going concern outlook through to December 2026, highlighting elevated regional risk.
Katlan development is advancing as a subsea tieback to the Energean Power FPSO. First gas is planned for H1 2027. Property, plant and equipment rose to $3,056.3 million with $310.1 million of additions in 9M 2025 and $26.0 million of capitalised borrowing costs.
New long-term gas contracts worth over $4 billion
Dalia Energy GSPA signed
On 25 November 2025, Energean Israel signed a Gas Sale and Purchase Agreement with Dalia Energy Companies Ltd worth over $2 billion in contracted revenues. Volumes are approximately 0.5 bcm/year from around January 2030, stepping up to about 1.2 bcm/year from June 2035, with no supply in June-September during 2030-2034. The contract includes floor pricing, take-or-pay and CPI-linked indexation (not Brent-linked).
Kesem Energy GSPA
Earlier in the year, a GSPA was signed with Kesem Energy Ltd for approximately 1 bcm/year from the mid-2030s, with limited intermittent supply before then. That deal represents over $2 billion in revenues across roughly 12.5 bcm over about 17 years, again with floor pricing, take-or-pay and price indexation that is not Brent-linked.
Why this matters: take-or-pay means buyers commit to pay for a minimum volume whether or not they take it (within contract rules). Paired with CPI indexation, these features underpin forward cash flows and reduce commodity price exposure.
Pipelines and market access: Nitzana capacity secured
In October 2025, Energean Israel signed a transmission agreement with Israel Natural Gas Lines (INGL) for up to 1 bcm/year capacity in the Nitzana pipeline for 15 years, with extension and early termination options. During construction, the company has rights to access available capacity in the Jordan-North pipeline. Nitzana is expected to be operational no later than 36 months from end-October 2025.
Energean Israel’s 16.4% share of Nitzana and the compression station is expected to cost approximately $100 million. Funding will come primarily via a new unsecured 10-year $70 million term loan (SOFR plus margin) and cash on hand. An initial 40% downpayment was made in October, funded by a $33.2 million draw.
Debt refinancing, interest costs and hedging
The company completed a notable refinancing in 2025. A new, non‑recourse (to Energean plc) $750 million senior‑secured term loan was signed in February and fully drawn, partly to refinance the 2026 notes, which were redeemed in full on 21 September 2025. Outstanding debt at 30 September 2025 comprises:
- $620.8 million notes due 2028 at 5.375%
- $618.5 million notes due 2031 at 5.875%
- $735.7 million notes due 2033 at 8.500%
- $270.1 million ILS-linked term loan due 2035 at 3.1% + BOI rate
- $456.8 million USD term loan due 2035 at 4.25% + SOFR
Restricted cash stands at $20.85 million, mainly for the March 2026 interest payment. With floating-rate exposure on the new term loan, management flags interest rate risk. On the plus side, cash flow hedging for Katlan currency needs produced a $28.7 million gain in other comprehensive income and a $28.3 million derivative asset.
Volumes and mix: what changed year-on-year
- Gas volumes: 4.0 bcm (4.2 bcm in 9M 2024).
- Liquids volumes: 3,654 kbbl (4,310 kbbl in 9M 2024).
- Gas revenue: $608.8 million; liquids revenue: $236.6 million.
Lower liquids volumes, and slightly lower gas volumes, pulled revenue down. Royalties fell with revenue, but higher depreciation from a larger asset base kept pressure on operating profit.
My take: solid underlying, with future sales now better underwritten
There’s good and bad here. The bad: profits and cash flow are down on last year, and finance costs remain chunky. The good: Energean Israel stayed firmly profitable through a volatile period, strengthened its equity base, refinanced near‑term notes, and locked in two multi‑billion-dollar sales contracts that should improve forward visibility.
The Nitzana capacity deal is strategically useful – more routes to market tends to mean more resilience. Katlan spend is visible and hedged; first gas in H1 2027 is the next big operational catalyst. The key external swing factor remains regional security. That risk is openly flagged, and the June pause shows how quickly it can bite.
What to watch next
- Execution at Katlan – capex cadence and the H1 2027 first gas timeline.
- Nitzana project milestones and further drawdowns on the unsecured term loan.
- Realised pricing and volumes across gas and liquids – prices are not disclosed here.
- Interest costs on floating-rate debt and any additional hedging.
- Operational uptime at the Energean Power FPSO amid ongoing geopolitical risk.
Net-net, this update reads as a pragmatic step forward: lower earnings today, but stronger contracted sales and infrastructure commitments for tomorrow.
