UK's Ithaca Energy estimates 2023 adjusted earnings at $1.7 billion

(Reuters) - Ithaca Energy expects to post adjusted earnings for 2023 of $1.7 billion, the British oil and gas producer said in a trading statement on Thursday, a fall of about 11% reflecting lower output.

It reported adjusted EBITDAX (earnings before interest, tax, depreciation, amortisation, and exploration) of $1.9 billion in 2022.

Last month, Alan Bruce stepped down as Ithaca's chief executive officer after about two years in the role and has been replaced by finance chief Iain Lewis in the interim.

The North Sea-focused company said it produced about 70,200 barrels of oil equivalent per day (boe/d) in 2023, down from a record output of 71,403 boe/d but in line with guidance of between 68,000 and 74,000 boe/d.

Ithaca said its 2023 net operating costs came to $524 million versus guidance of between $525 million and $575 million.

Its net producing asset capital costs were $392 million, the company said, which "reflects a reduction in planned activity in the year as a direct result of the Energy Profits Levy".

Ithaca projected a net capital expenditure of $97 million on its Rosebank oil development, aiming to start producing oil by 2026/27.

The British government gave Ithaca and partner Equinor the go-ahead in September 2023 to develop Rosebank, the aging North Sea basin's biggest new project in years.

Reuters reported last year citing sources that Equinor was preparing to sell a quarter of its 80% stake in Rosebank, which could fetch about $1.5 billion.

Ithaca, owned by Tel Aviv-listed Delek Group, also announced a dividend of $134 million, taking its full-year payouts to its targeted $400 million.

Ithaca is scheduled to report its full-year results on March 21.

(Reporting by Deep Vakil and Tanya Jain in Bengaluru)