- The restructuring follows Ithaca’s £754 million ($975.8 million) all-stock deal to acquire Eni’s UK operations last year.
- Ithaca Energy revealed a $193 million acquisition of Japan Petroleum Exploration’s (Japex) North Sea business.
After acquiring Eni UK assets, Ithaca Energy (ITH.L), a key player in North Sea oil and gas, has announced a major restructuring initiative. This move could lead to job losses. The restructuring process is set to conclude by July 1, 2025, though the company has yet to disclose the number of roles affected.
The restructuring follows Ithaca’s £754 million ($975.8 million) all-stock deal to acquire Eni’s UK operations last year, solidifying its position as a leading independent energy producer in the North Sea.
This week, the company also announced a $193 million acquisition of Japan Petroleum Exploration’s (Japex) North Sea business, further strengthening its portfolio.
- 2024 production rose by 14% year-on-year
- 2025 output forecast: 105,000-115,000 barrels of oil equivalent per day (boepd), a jump from last year’s 80,200 boepd
- Plans to sustain over 100,000 boepd beyond 2025, aided by the Rosebank development
Despite this expansion, Ithaca’s 2024 profit after tax dropped to $153.2 million, down from $292.6 million in 2023, mainly due to higher tax obligations.
The UK government’s 78% tax rate on oil and gas activities has significantly impacted Ithaca’s bottom line. The company anticipates cash tax payments between $235 million and $265 million in 2025, primarily due to the energy profits levy.
To maintain investor confidence, Ithaca has declared a $200 million interim dividend, set for distribution in April.
With its aggressive expansion strategy, Ithaca is positioning itself for long-term growth, but job cuts and tax burdens may pose challenges. The industry will closely watch how the company balances workforce reductions, production targets, and fiscal pressures in the evolving North Sea energy landscape.