Energean Seals $1.4 Billion Gas Deal With Sorek Power Station

Energean, an oil and gas company, has signed a new gas supply agreement with the Sorek power station, set to commence in September 2026. The contract spans approximately 15 years and involves the delivery of up to 7.7 billion cubic meters of natural gas. Energean anticipates generating revenues of around $1.4 billion from this deal over its duration. The agreement stipulates an initial supply rate of up to 0.5 billion cubic meters annually, increasing to 0.6 billion cubic meters per year starting in September 2035.

This announcement coincided with Energean's release of its semi-annual financial report. The company reported a post-tax profit of $160 million for the first half of 2026, marking a 45% increase from the $110 million profit recorded in the same period last year. Despite an 8% decrease in production revenues, which totaled $743 million compared to $804 million in the first half of 2025, the profit surge was primarily driven by a significant reduction in the group's tax expenses. Pre-tax profit stood at $178 million, up from $174 million year-on-year, while tax expenses plummeted to $19 million from $64 million, largely due to the recognition of deferred tax assets in Italy.

Cash flow from operating activities reached $476 million, down from $555 million in the prior year's comparable period. However, free cash flow saw a substantial rise of 35%, reaching $250 million. Energean also reported a decrease in net debt by $97 million during the second quarter, bringing the total net debt to $3.23 billion as of the end of June.