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Ithaca Energy Profit Falls on Impairment Charges, Lower Natgas Prices

Aug 22 (Reuters) - North Sea oil and gas company Ithaca Energy reported a lower net profit for the first half of the year on Thursday, hurt by impairment charges, lower production and a decline in natural gas prices.

Ithaca, which in April agreed to buy nearly all Eni's UK oil and gas producing assets for about 754 million pounds ($986.53 million) in stock, lowered its full-year production forecast to 76 to 81 thousand barrels of oil equivalent per day (kboepd), from 80 to 87 kboepd expected earlier.

Production fell to 53 kboepd in the six-month period ended June 30, from last year's 75.8 kboepd.

The company said its output was hit by operational issues across its non-operated joint ventures and infrastructure together with planned shutdowns across operated portfolio.

Ithaca said realised gas prices fell to $92 per barrel of oil equivalent (boe) in the first six months of the year after hedging from last year's $125 per boe.

Ithaca recorded a net income of $105.7 million for the first half, compared with last year's $159.6 million.

($1 = 0.7643 pounds)

Reporting by Arunima Kumar in Bengaluru; Editing by Subhranshu Sahu

Source: Reuters


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