Ithaca Energy posts annual loss after UK windfall tax charges

Core Viewpoint - Ithaca Energy reported an annual net loss due to a one-off charge related to the UK's extended windfall tax, reflecting the impact of tougher fiscal rules on North Sea oil and gas producers [1][2]. Group 1: Financial Performance - Ithaca Energy experienced a net loss of $84.1 million for 2025, a significant decline from a profit of $153.1 million the previous year [4]. - The company recorded a non-cash tax charge of $327.6 million due to the UK government's extension of windfall taxes to March 2030 [2][6]. - Production for 2025 was at 119 kilobarrels of oil equivalent per day (kboed), at the lower end of its expected range, but the company forecasts an increase in 2026 production to 120-130 kboed [4]. Group 2: Market Impact - Shares of Ithaca Energy fell approximately 4% in morning trading, with a drop of up to 8.8% earlier in the session, as investors reacted to the financial results and policy implications [2][6]. - The introduction of steep windfall taxes in 2022 has placed significant pressure on North Sea gas and oil producers, coinciding with rising energy prices following geopolitical events [3][6]. Group 3: Regulatory Environment - The UK government eased some regulations for energy firms in November, providing some relief to Ithaca, although the 38% windfall tax rate remained unchanged [5].