• Asset sale deal to Carlyle on track
• Full-year production outlook narrowed
• First-half profit up 27%, production rises 38%

Sept 11 (Reuters) - Gas producer Energean (ENOG.L) , opens new tab reported higher first-half profits on Wednesday, helped by a rise in production due to strong summer demand in Israel, which contributes more than 70% of total output.

The company, whose main production comes from its gas operations offshore Israel, is looking to expand in Europe, Middle East and Africa, particularly where there is long-term policy support for gas and displacement of coal.

The company had agreed in June to sell its assets in Egypt, Italy and Croatia to private equity fund Carlyle (CG.O) , opens new tab for up to $945 million.

Energean expects to pay a special dividend of up to $200 million following the completion of this deal, which is expected by the end of the year.

The company said production for the first-half rose 38% to 146 thousand barrels of oil equivalent (kboepd), from last year, with the Karish and Karish North fields in Israel.

Its realised average gas price fell 12% to $4.6 per thousand cubic feet (mcf) for the period.

Energean said its day-to-day production in Israel continues to be unaffected by the ongoing geopolitical developments.

The group narrowed its production forecast for the year to 155 - 165 kboepd from an earlier outlook of 155-175 kboepd, to reflect year-to-date performance in Israel and the actual start-date and expected ramp-up to full production of Cassiopea offshore Italy.

In Italy, Cassiopea started-up in August 2024. The remaining three wells and associated facilities are expected to be brought online, tested and commissioned over the coming months, the company said.

"On first pass these appear to be a reassuring set of results, in the face of a challenging macro and political backdrop," said Peel Hunt analyst Werner Riding.

Energean's shares slipped 0.2% to 884p by 0737 GMT.

Energean aims to double its production in the coming years, primarily through development of new prospects in Israel, including the Katlan field.

The company in July also said it would invest about $1.2 billion to develop the Katlan project off Israel, as it announced its final investment decision, with gas output expected to commence in the first half of 2027.

Energean reported a profit after tax of $89 million, or 48 cents per share, for the six-months ended June 30, from $70 million, or 39 cents per share last year.

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https://www.reuters.com/business/energy/energean-posts-higher-first-half-profit-production-boost-2024-09-11/