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Ithaca Energy PLC (GB:ITH)
LSE:ITH
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Ithaca Energy PLC (ITH) AI Stock Analysis

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GB:ITH

Ithaca Energy PLC

(LSE:ITH)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
227.00p
▲(13.84% Upside)
Ithaca Energy PLC's overall stock score is driven by strong technical indicators and robust cash flow generation, which provide a positive outlook despite profitability challenges. The attractive dividend yield offers some compensation for the negative earnings, but improving profitability remains essential for long-term growth.
Positive Factors
Revenue Growth
Ithaca Energy's robust revenue growth indicates effective market strategies and expanding operations, which are crucial for long-term sustainability.
Cash Flow Generation
Strong cash flow generation enhances financial flexibility, enabling the company to invest in growth opportunities and manage debt effectively.
Operational Efficiency
High operational efficiency, as shown by strong EBIT and EBITDA margins, supports sustainable profitability and competitive positioning in the industry.
Negative Factors
Profitability Challenges
Ongoing profitability issues, reflected in negative net income, could hinder long-term growth and shareholder value if not addressed.
Negative Net Profit Margin
A negative net profit margin indicates challenges in converting revenue into profit, which may impact financial health and investment capacity.
Return on Equity
Negative return on equity suggests inefficiencies in using shareholders' capital to generate profits, potentially affecting investor confidence.

Ithaca Energy PLC (ITH) vs. iShares MSCI United Kingdom ETF (EWC)

Ithaca Energy PLC Business Overview & Revenue Model

Company DescriptionIthaca Energy Limited, together with its subsidiaries, engages in the exploration, development, and production of oil and gas in the North Sea. The company own a portfolio of assets located in Northern and Central North Sea and Moray Firth areas. As of December 31, 2021, it had proved and probable reserves, and resources of 5.6 millions of barrels of oil equivalent. The company was incorporated in 2004 and is headquartered in Aberdeen, the United Kingdom. Ithaca Energy Limited is a subsidiary of Delek North Sea Limited.
How the Company Makes MoneyIthaca Energy PLC generates revenue primarily through the production and sale of oil and gas. The company operates a portfolio of assets in the North Sea, where it explores, develops, and produces hydrocarbons. Revenue streams are largely dependent on the volume of oil and gas produced and the prevailing market prices for these commodities. Ithaca Energy also engages in the acquisition of strategic assets to bolster its production capabilities and reserves. Additionally, the company may benefit from partnerships and joint ventures that allow for shared resources and expertise, thus enhancing operational efficiency and profitability.

Ithaca Energy PLC Financial Statement Overview

Summary
Ithaca Energy PLC shows strong operational margins and cash flow capabilities, but recent net losses and negative net profit margin indicate profitability challenges. The balance sheet is stable with manageable debt, though equity returns need improvement.
Income Statement
65
Positive
Ithaca Energy PLC's revenue has shown fluctuations over the past years, with recent TTM figures indicating a decline. The gross profit margin stands at 49.0% in TTM, reflecting a strong ability to cover production costs. However, the net profit margin has turned negative at -6.7% due to a net loss, indicating challenges in managing overall expenses. EBIT and EBITDA margins are healthy at 35.2% and 62.0% respectively, suggesting operational efficiency despite the net loss.
Balance Sheet
70
Positive
The company's balance sheet reflects a moderate debt-to-equity ratio of 0.38, indicating manageable leverage. The return on equity is currently negative due to a net loss, but the equity ratio of 35.1% shows a solid capital structure. There is potential risk from liabilities, which are substantial compared to equity, but the overall financial position remains stable.
Cash Flow
75
Positive
Ithaca Energy PLC demonstrates strong cash flow management, with operating cash flow significantly exceeding net income, yielding a high operating cash flow to net income ratio. The free cash flow growth rate is positive, reflecting good cash generation despite capital expenditures. The free cash flow to net income ratio further underscores the company's ability to generate cash, even during periods of net loss.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.21B1.98B2.32B2.60B1.43B1.11B
Gross Profit1.08B842.21M1.00B1.25B549.06M311.46M
EBITDA1.37B1.04B1.15B1.79B918.11M618.15M
Net Income-148.25M153.15M215.63M1.03B620.62M-467.10M
Balance Sheet
Total Assets8.05B8.27B6.25B6.76B4.73B4.26B
Cash, Cash Equivalents and Short-Term Investments268.94M178.08M156.54M253.82M44.85M1.20M
Total Debt1.08B1.07B768.71M1.27B1.40B1.85B
Total Liabilities5.23B5.23B3.80B4.30B4.06B3.72B
Stockholders Equity2.82B3.04B2.44B2.46B676.51M542.47M
Cash Flow
Free Cash Flow445.29M389.20M811.97M1.34B643.06M593.21M
Operating Cash Flow974.85M853.28M1.29B1.72B912.66M735.27M
Investing Cash Flow-591.30M-390.91M-492.40M-1.40B-220.15M-198.96M
Financing Cash Flow-411.84M-449.48M-900.73M-107.45M-650.74M-549.87M

Ithaca Energy PLC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price199.40
Price Trends
50DMA
185.76
Positive
100DMA
167.20
Positive
200DMA
144.70
Positive
Market Momentum
MACD
3.12
Negative
RSI
59.23
Neutral
STOCH
79.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ITH, the sentiment is Positive. The current price of 199.4 is above the 20-day moving average (MA) of 190.98, above the 50-day MA of 185.76, and above the 200-day MA of 144.70, indicating a bullish trend. The MACD of 3.12 indicates Negative momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 79.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ITH.

Ithaca Energy PLC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£1.85B17.037.74%3.07%118.04%65.66%
70
Outperform
£3.28B15.84-7.04%13.34%31.96%-159.27%
70
Outperform
£1.49B9.1629.47%5.54%-2.66%0.11%
61
Neutral
£3.42B-9.01-1.49%8.55%123.03%
60
Neutral
£778.19M-31.6011.61%9.22%-32.89%-239.58%
56
Neutral
£784.73M-4.96-19.50%8.13%56.20%-185.69%
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:ITH
Ithaca Energy PLC
199.40
102.76
106.33%
GB:DEC
Diversified Energy Company
1,020.00
174.37
20.62%
GB:HBR
Harbour Energy
204.80
-49.40
-19.43%
GB:SEPL
SEPLAT Petroleum Development
309.50
115.33
59.40%
GB:SQZ
Serica Energy
206.00
77.87
60.77%
GB:ENOG
Energean
809.00
12.30
1.54%

Ithaca Energy PLC Corporate Events

Business Operations and Strategy
Ithaca Energy Implements Share Incentive Plan for Executives
Neutral
Aug 6, 2025

Ithaca Energy PLC announced that Computershare Share Plan Trustees Limited purchased ordinary shares on behalf of the company’s executive chairman and chief financial officer under the company’s Share Incentive Plan. This plan allows employees to buy shares using salary deductions, aligning employee interests with company performance and potentially enhancing stakeholder value.

The most recent analyst rating on (GB:ITH) stock is a Hold with a £1.27 price target. To see the full list of analyst forecasts on Ithaca Energy PLC stock, see the GB:ITH Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Ithaca Energy Announces Board Appointment
Positive
Jul 17, 2025

Ithaca Energy PLC announced that Deborah Gudgeon has been appointed as an Independent Non-Executive Director to the Board of Valterra Platinum Limited. This appointment may enhance Ithaca Energy’s strategic positioning by potentially fostering new partnerships or insights from Gudgeon’s involvement with Valterra Platinum.

The most recent analyst rating on (GB:ITH) stock is a Hold with a £1.27 price target. To see the full list of analyst forecasts on Ithaca Energy PLC stock, see the GB:ITH Stock Forecast page.

Business Operations and Strategy
Ithaca Energy Executives Participate in Share Incentive Plan
Positive
Jul 8, 2025

Ithaca Energy PLC announced that its Share Incentive Plan (SIP) facilitated the purchase of ordinary shares by key executives, including the Executive Chairman and Chief Financial Officer, through Computershare Share Plan Trustees Limited. This move, conducted on the London Stock Exchange, aligns with the company’s strategy to engage employees in its growth and success, potentially enhancing stakeholder value and reinforcing its market position.

The most recent analyst rating on (GB:ITH) stock is a Hold with a £1.27 price target. To see the full list of analyst forecasts on Ithaca Energy PLC stock, see the GB:ITH Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Ithaca Energy Completes Strategic Acquisition to Boost North Sea Presence
Positive
Jul 7, 2025

Ithaca Energy has completed the acquisition of JAPEX UK E&P Limited, increasing its stake in the Seagull field from 35% to 50%, matching bp’s interest. This acquisition, valued at $193 million, is part of Ithaca’s strategy to enhance production and cash flow from high-quality assets, reinforcing its position as a key player in the UK North Sea oil and gas industry.

The most recent analyst rating on (GB:ITH) stock is a Hold with a £1.27 price target. To see the full list of analyst forecasts on Ithaca Energy PLC stock, see the GB:ITH Stock Forecast page.

Business Operations and Strategy
Ithaca Energy Enhances Employee Investment with Share Incentive Plan
Positive
Jun 6, 2025

Ithaca Energy PLC announced the purchase of ordinary shares by its managerial staff under the company’s Share Incentive Plan. This plan allows employees to acquire shares through salary deductions, aligning their interests with company performance. The transactions were conducted on the London Stock Exchange, reflecting the company’s commitment to employee investment and engagement.

The most recent analyst rating on (GB:ITH) stock is a Sell with a £1.00 price target. To see the full list of analyst forecasts on Ithaca Energy PLC stock, see the GB:ITH Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Ithaca Energy Reports Record Q1 2025 Performance Amid Strategic Acquisitions
Positive
May 21, 2025

Ithaca Energy PLC reported record quarterly production and adjusted EBITDAX for Q1 2025, driven by its enlarged portfolio and strategic acquisitions, including increased stakes in the Seagull and Cygnus fields. The company’s strong financial performance, with significant liquidity and a low leverage position, supports its growth strategy and shareholder returns, positioning it as a leading gas producer in the UKCS.

The most recent analyst rating on (GB:ITH) stock is a Hold with a £150.00 price target. To see the full list of analyst forecasts on Ithaca Energy PLC stock, see the GB:ITH Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Ithaca Energy Expands Stake in Cygnus Gas Field
Positive
May 20, 2025

Ithaca Energy has signed an agreement to acquire an additional 46.25% stake in the Cygnus gas field from Spirit Energy for £116 million, increasing its operated interest to 85%. This acquisition aligns with Ithaca’s strategy of value-accretive M&A, enhancing its portfolio with high-quality assets in the UK Continental Shelf. The Cygnus field, the largest gas field in the UKCS, is crucial for the UK’s energy security, and this transaction is expected to add significant reserves and production capacity, with further potential through infill drilling.

The most recent analyst rating on (GB:ITH) stock is a Hold with a £150.00 price target. To see the full list of analyst forecasts on Ithaca Energy PLC stock, see the GB:ITH Stock Forecast page.

DividendsBusiness Operations and Strategy
Ithaca Energy Reinvests Dividends in Executive Share Purchases
Positive
May 15, 2025

Ithaca Energy PLC announced that dividends paid on shares within its Share Incentive Plan were reinvested to purchase additional shares for its executives, including the Executive Chairman and Chief Financial Officer. This reinvestment, conducted in accordance with the company’s SIP scheme rules, underscores Ithaca Energy’s commitment to aligning management interests with shareholder value, potentially enhancing stakeholder confidence in the company’s governance and financial strategies.

The most recent analyst rating on (GB:ITH) stock is a Hold with a £116.00 price target. To see the full list of analyst forecasts on Ithaca Energy PLC stock, see the GB:ITH Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
Ithaca Energy PLC Announces Successful AGM Resolutions
Positive
May 14, 2025

Ithaca Energy PLC announced the successful passing of all resolutions at its Annual General Meeting held on May 14, 2025. The resolutions included the approval of the annual report, director appointments, and authorizations related to share allotment and company share purchases. This outcome reflects strong shareholder support and positions the company to continue its strategic initiatives and governance practices.

The most recent analyst rating on (GB:ITH) stock is a Hold with a £150.00 price target. To see the full list of analyst forecasts on Ithaca Energy PLC stock, see the GB:ITH Stock Forecast page.

Business Operations and Strategy
Ithaca Energy Enhances Employee Engagement with Share Incentive Plan
Positive
May 7, 2025

Ithaca Energy PLC announced the purchase of ordinary shares by its managerial staff under the company’s Share Incentive Plan (SIP), which is an all-employee share plan approved by HM Revenue and Customs. This move is part of the company’s efforts to align the interests of its employees with its operational goals, potentially enhancing stakeholder confidence and reinforcing its market position.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 03, 2025