Energean Israel Half Year 2026 Accounts

Energean PLC

09 September 2026

 

ENERGEAN ISRAEL LIMITED

UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

30 JUNE 2026

ENERGEAN ISRAEL LIMITED

UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF 30 JUNE 2026

INDEX

		Page
Interim Consolidated Statement of Comprehensive Income		2
Interim Consolidated Statement of Financial Position		3
Interim Consolidated Statement of Changes in Equity		4
Interim Consolidated Statement of Cash Flows		5
Notes to the Interim Consolidated Financial Statements		6-19

- - - - - - - - - - - - - - - - - - - -

ENERGEAN ISRAEL LIMITED

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

SIX MONTHS ENDED 30 JUNE 2026

		Notes		30 June 2026 (Unaudited) $'000		30 June 2025 (Unaudited) $'000
Revenue		3		481,334		482,627
Cost of sales		4		(249,814)		(256,733)
Gross profit for the period				231,520		225,894
General and administrative expenses		4		(14,039)		(10,747)
Exploration and evaluation expenses		4		-		(1,994)
Other (expenses)/ income		4		(524)		9,785
Operating profit for the period				216,957		222,938
Finance income		5		2,066		2,713
Finance costs		5		(76,199)		(83,085)
Net foreign exchange losses		5		(15,016)		(11,814)
Profit for the period before tax				127,808		130,752
Taxation expense		6		(26,800)		(30,264)
Net profit for the period				101,008		100,488

Other comprehensive income (loss):
Items that may be reclassified subsequently to profit or loss:
(Loss)/ Income on cash flow hedge for the period		15		(3,873)		37,502
Income tax on items that may be reclassified to profit and loss		15		891		(8,625)
Other comprehensive income (loss) for the period				(2,982)		28,877
Total comprehensive income for the period				98,026		129,365

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

ENERGEAN ISRAEL LIMITED

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS OF 30 JUNE 2026

		Notes		30 June 2026 (Unaudited) $'000		31 December 2025 (Audited) $'000
ASSETS:
NON-CURRENT ASSETS:
Property, plant and equipment		7		3,283,580		3,077,029
Intangible assets		8		161,728		147,477
Derivative financial instruments		15		239		3,931
Other receivables				11,717		12,282
				3,457,264		3,240,719
CURRENT ASSETS:
Trade and other receivables		10		144,047		145,902
Derivative financial instruments		15		14,363		21,705
Inventories		11		22,318		20,991
Restricted cash		12		1,993		97,647
Cash and cash equivalents				213,816		118,819
				396,537		405,064
TOTAL ASSETS				3,853,801		3,645,783
EQUITY AND LIABILITIES:
EQUITY:
Share capital				1,708		1,708
Share premium				212,539		212,539
Hedges reserve		15		11,244		19,740
Retained earnings				239,849		177,841
TOTAL EQUITY				465,340		411,828
NON-CURRENT LIABILITIES:
Borrowings		12		2,766,042		2,744,085
Decommissioning provision				88,330		89,999
Deferred tax liabilities		9		81,580		75,995
Trade and other payables		13		4,032		4,417
				2,939,984		2,914,496
CURRENT LIABILITIES:
Trade and other payables		13		447,972		311,134
Income tax liability		6		505		8,325
				448,477		319,459
TOTAL LIABILITIES				3,388,461		3,233,955
TOTAL EQUITY AND LIABILITIES				3,853,801		3,645,783

08 September 2026
Date of approval of the interim consolidated financial statements		Panagiotis Benos Director		Matthaios Rigas Director

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

ENERGEAN ISRAEL LIMITED

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SIX MONTHS ENDED 30 JUNE 2026

		Share capital $'000		Share Premium $'000		Hedges Reserve $'000		Retained earnings  $'000		Total equity $'000
Balance as of 1 January 2026 (Audited)		1,708		212,539		19,740		177,841		411,828
Transactions with shareholders:
Dividend, see note 14		-		-		-		(39,000)		(39,000)
Comprehensive Income:
Profit for the period		-		-		-		101,008		101,008
Other comprehensive loss		-		-		(2,982)		-		(2,982)
Total comprehensive income		-		-		(2,982)		101,008		98,026
Cashflow hedges - basis adjustment transferred to PPE		-		-		(7,161)		-		(7,161)
Cashflow hedge - deferred tax related to basis adjustment		-		-		1,647		-		1,647
Balance as of 30 June 2026 (Unaudited)		1,708		212,539		11,244		239,849		465,340
At 1 January 2025 (Audited)		1,708		212,539		(266)		27,499		241,480
Transactions with shareholders:
Dividend, see note 14		-		-		-		(95,850)		(95,850)
Comprehensive Income:
Profit for the period		-		-		-		100,488		100,488
Other comprehensive income, net of tax		-		-		28,877		-		28,877
Total comprehensive income		-		-		28,877		100,488		129,365
Balance as of 30 June 2025 (Unaudited)		1,708		212,539		28,611		32,137		274,995

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

ENERGEAN ISRAEL LIMITED

INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED 30 JUNE 2026

		Notes		30 June 2026 (Unaudited) $'000		30 June 2025 (Unaudited) $'000
Operating activities
Profit for the period before tax				127,808		130,752
Adjustments to reconcile profit before taxation to net cash provided by:
Depreciation, depletion and amortisation		4		110,282		110,138
Impairment of exploration and evaluation asset		4		-		1,994
Other expenses / (income)		4		524		(294)
Finance income		5		(2,066)		(2,579)
Finance expenses		5		76,199		82,951
Net foreign exchange loss		5		15,016		11,814
Cash flow from operations before working capital				327,763		334,776
Decrease / (increase) in trade and other receivables				(5,118)		17,420
Increase in inventories				(1,327)		(4,541)
Increase in trade and other payables				18,335		9,770
Cash flow from operations				339,653		357,425
Income tax paid				(25,400)		(110,460)
Net cash inflow from operating activities				314,253		246,965
Investing activities
Payment for purchase of property, plant and equipment (PP&E)		7(c)		(161,003)		(183,521)
Payment for exploration and evaluation, and other intangible assets				(12,821)		(897)
Loan granted to Related Party				-		(28,000)
Income on derivatives				117		134
Interest received				2,827		3,173
Net cash outflow from investing activities				(170,880)		(209,111)
Financing activities
Transaction costs in relation to borrowing issuance		12		-		(17,647)
Drawdown of borrowings		12		-		75,000
Borrowings - interest paid		12		(98,295)		(82,481)
Dividends paid		14		(39,000)		(67,600)
Other finance cost paid				(2,981)		(1,366)
Movement in restricted cash, net (1)		12		95,654		(830)
Repayment of obligations under leases		13		(4,753)		(2,677)
Net cash outflow used in financing activities				(49,375)		(97,601)
Net increase / (decrease) in cash and cash equivalents				93,998		(59,747)
Cash and cash equivalents at beginning of period				118,819		157,728
Effect of exchange differences on cash and cash equivalents				999		2,897
Cash and cash equivalents at end of period				213,816		100,878

⁽¹⁾ See note 2(c) for the reclassification of restricted cash movements from investing to financing activities.

The accompanying notes are an integral part of these unaudited interim consolidated financial statements.

NOTE 1- General

a.   Energean Israel Limited (the "Company") was incorporated in Cyprus on 22 July 2014 as a private company with limited liability under the Companies Law, Cap. 113. As of 1 January 2024, the Company is tax resident in the UK by virtue of having transferred its management and control from Cyprus to the UK, with its registered address being at One Great Cumberland Place, London, W1H 7AL.

b.   The Company and its subsidiaries (the "Group") have been established with the objective of the exploration, production and commercialisation of natural gas and hydrocarbon liquids. The Group's main activities are performed in Israel by its Israeli Branch.

c.   As of 30 June 2026, the Company had investments in the following subsidiaries:

Name of subsidiary	Country of incorporation / registered office	Principal activities	Shareholding At 30 June 2026 (%)	Shareholding At 31 December 2025 (%)
Energean Israel Transmission Ltd	121, Menachem Begin St. Azrieli Sarona Tower, POB 24, Tel Aviv 6701203 Israel	Gas transportation license holder	100	100
Energean Israel Finance Ltd		Financing activities	100	100

d.   The Group's core assets as of 30 June 2026 comprised:

Country	Asset	Working interest	Field phase
Israel	Karish including Karish North (1)	100%	Production
Israel	Tanin (1)	100%	Development
Israel	Katlan (Block 12) (2)	100%	Development
Israel	Blocks 23, 31 (3)	100%	Exploration

(1) The concession agreement expires in 2044.

(2) The concession agreement expires in 2054.

(3) Refer to note 8.

e.   There have been no significant changes to related parties since 31 December 2025, refer to note 22 in the 2025 Group's annual consolidated financial statements for more information.

NOTE 2- Accounting policies and basis of preparation

a.   The interim consolidated financial information included in this report has been prepared in accordance with IAS 34 "Interim Financial Reporting". The results for the interim period are unaudited and, in the opinion of management, include all adjustments necessary for a fair presentation of the results for the period ended 30 June 2026. All such adjustments are of a normal recurring nature. The unaudited interim consolidated financial statements do not include all the information and disclosures that are required for the annual financial statements and must be read in conjunction with the Group's annual consolidated financial statements for the year ended 31 December 2025.

These financial statements are presented in U.S. Dollars and all values are rounded to the nearest thousand dollars except where otherwise indicated.

The financial information presented herein has been prepared in accordance with the accounting policies expected to be used in preparing the Group's annual consolidated financial statements for the year ended 31 December 2026 which are the same as those used in preparing the annual consolidated financial statements for the year ended 31 December 2025.

NOTE 2- Accounting policies and basis of preparation (Cont.)

b.   The directors consider it appropriate to adopt the going concern basis of accounting in preparing these interim consolidated financial statements. The Going Concern assessment covers the period up to 31 December 2027, "the forecast period".

Since 7 October 2023, regional geopolitical risk has remained elevated. The intensification of tensions in the Middle East has increased the security risks to essential infrastructure, including the Energean Power FPSO offshore Israel, which may be exposed to missile fire or sabotage. Any event affecting production from the Karish and Karish North fields could have a material adverse impact on the Group's business, results of operations, cash flows, financial condition and prospects.

On 28 February 2026, the Ministry of Energy and Infrastructure ordered the temporary suspension of production and activities of the Energean Power FPSO following further escalation of geopolitical tensions in the region at the time of the notice. On 9 April 2026, the Ministry of Energy and Infrastructure instructed the safe restart and resumption of production and operations of the Energean Power FPSO, and Energean acted in accordance with those instructions. Production of the Energean Power FPSO was resumed and the FPSO became fully operational on 10 April 2026.

Throughout 2026 and subsequent to the reporting period, Energean has maintained all necessary measures to support the continuity of business operations (subject to any governmental instructions), including the mobility of its people and the security of its information.

The going concern assessment is based on a Board-approved cashflow forecast covering a "Base Case" and a "Reasonable Worst Case" ("RWC") scenario, with additional stress tests on production, pricing, and a prolonged suspension of Israeli production due to geopolitical risk, taking into account the Group's latest production forecasts, budgeted expenditure, forward commodity price curves and headroom under its debt facilities. Under both the Base Case and, after mitigation, the RWC, sufficient liquidity is maintained throughout the assessment period, including under the prolonged production suspension scenario, which the Board considers remote but has nonetheless modelled across the full horizon with adequate liquidity and covenant headroom maintained throughout. Reverse stress testing confirms that the conditions required to eliminate liquidity headroom are remote, with prudent mitigating strategies available within the necessary timeframe if required.

After careful consideration, the Directors are satisfied that the Group has sufficient financial resources to continue in operation for the foreseeable future, for the assessment period from the date of approval of these unaudited interim consolidated financial statements to 31 December 2027. For this reason, they continue to adopt the going concern basis in preparing these financial statements.

c.   From H1 2026, the Group has changed the presentation of movements in restricted cash relating solely to debt servicing (specifically, cash restricted under the terms of the senior secured notes ahead of scheduled coupon payments) from investing activities to financing activities in the Statement of Cash Flows. Previously, such movements were presented within investing activities as a movement between cash and cash equivalents and restricted cash. The Group considers this change provides more relevant and reliable information, as the restriction has no substance separate from the financing activity - debt servicing - that it supports, and better reflects the nature of the underlying cash flow. In accordance with IAS 8, the comparative period has been restated. There is no impact on total net increase/decrease in cash and cash equivalents, profit for the period, or the Statement of Financial Position for any period presented.

NOTE 3- Revenues

		30 June 2026 (Unaudited) $'000		30 June 2025 (Unaudited) $'000
Revenue from gas sales (1)		323,828		345,718
Revenue from hydrocarbon liquids sales (2)		155,696		136,909
Hedging income (note 15(B))		1,810		-
Total revenue		481,334		482,627

NOTE 3- Revenues (Cont.)

⁽¹⁾ Sales gas for six months ended 30 June 2026 totaled approximately 2.13 bcm (billion cubic meters) and for six months ended 30 June 2025 totaled approximately 2.29 bcm.

⁽²⁾ Sales from hydrocarbon liquids for six months ended 30 June 2026 totaled approximately 1,878 kbbl (kilo barrel) and for six months ended 30 June 2025 totaled approximately 2,057 kbbl.

See also Note 2(b) regarding the temporary suspension of production of the Energean Power FPSO.

NOTE 4- Operating profit

		30 June 2026 (Unaudited) $'000		30 June 2025 (Unaudited) $'000
Cost of sales
Staff costs		11,645		9,000
Energy cost		1,911		1,222
Royalty payable		84,857		85,406
Depreciation (note 7)		109,234		109,239
Maintenance, insurance and other operating costs		42,034		52,889
Oil stock movement		133		(1,023)
Total cost of sales		249,814		256,733
General and administrative expenses
Staff costs		4,276		3,065
Share-based payment charge		761		614
Depreciation and amortisation (note 7, 8)		1,048		899
Auditor fees		176		145
Other general & administrative expenses (1)		7,778		6,024
Total general and administrative expenses		14,039		10,747
Impairment of exploration and evaluation asset (Block 21)		-		1,994
Loss from disposal of property, plant and equipment		(524)		-
Insurance compensation due to remedial work on auxiliary piping systems		-		9,500
Other operating income, net		-		285

⁽¹⁾ Other general & administrative expenses mainly refer to legal expenses, intercompany management fees and external advisors' fees.

NOTE 5- Net finance costs

		30 June 2026 (Unaudited) $'000		30 June 2025 (Unaudited) $'000
Interest expense on senior secured notes (note 12)		68,705		86,930
Interest expense on bank loans (note 12)		31,950		-
Less amounts included in the cost of qualifying assets (note 7(a))		(32,635)		(15,498)
		68,020		71,432
Charges for parent company guarantees		686		1,378
Other finance costs and bank charges		3,040		2,367
Unwinding of discount on trade payable (note 13(1))		2,346		5,146
Unwinding of discount on provision for decommissioning		2,100		3,026
Unwinding of discount on lease liability		377		277
Less amounts included in the cost of qualifying assets (note 7(a))		(370)		(541)
		8,179		11,653
Total finance costs		76,199		83,085
Interest income from related parties		-		(224)
Interest income from time deposits		(1,924)		(2,355)
Income from derivatives instruments		(117)		(134)
Other interest income		(25)		-
Total finance income		(2,066)		(2,713)
Net foreign exchange losses		15,016		11,814
Net finance costs		89,149		92,186

NOTE 6- Taxation

a.   Corporate Tax rates applicable to the Company:

Israel:

The Israeli corporate tax rate is 23% in 2026 and 2025.

United Kingdom:

Starting from 1 January 2024, the company's control and management was transferred from the Republic of Cyprus to the United Kingdom ("UK") and as such the company's tax residency migrated from Cyprus to UK from the first day of the accounting period. The applicable tax rate in the UK is 25%.

The Group's taxable profits arise in Israel through the Israeli branch and are taxed at the Israeli statutory tax rate of 23%. No material taxable income was generated at the UK parent entity level.

Under s.18A of the UK CTA 2009, the Company made an election for the branch of Energean Israel Limited (and any other branches that may open from time to time) to be exempt from UK corporation tax from its first accounting period commencing on 1 January 2024 and all subsequent accounting period.

NOTE 6- Taxation (Cont.)

b.   The Income and Natural Resources Taxation Law, 5771-2011 - Israel- the main provisions of the law are as follows:

In April 2011, the Knesset passed the Income and Natural Resources Tax Law, 5771-2011 ("the Law"), introducing an oil and gas profits levy at a rate calculated as described. The rate of the levy will be calculated according to a proposed R factor mechanism, according to the ratio between the net accrued revenues from the project and the cumulative investments as defined in the law. A minimum levy of 20% will be levied at the stage where the R factor ratio reaches 1.5, and when the ratio increases, the levy will increase gradually until the maximum rate of 50% until the ratio reaches 2.3. In addition, it was determined that the rate of the levy as stated will be reduced starting in 2017 by multiplying 0.64 by the difference between the corporate tax rate prescribed in section 126 of the Income Tax Ordinance for each tax year and the tax rate of 18%. In accordance with the corporate tax rate from 2018 onwards, the maximum rate will be 46.8%.

In addition, additional provisions were prescribed regarding the levy, inter alia, the levy will be recognised as an expense for the purpose of calculating income tax; The limits of the levy shall not include export facilities; The levy will be calculated and imposed for each reservoir separately (Ring Fencing); Payment by the owner of an oil right calculated as a percentage of the oil produced, the recipient of the payment will be liable to pay a levy according to the amount of the payment received, and this amount will be subtracted from the amount of the levy owed by the holder of the oil right. The law also sets rules for the unification or separation or consolidation of oil projects for the purposes of the Law. In accordance with the provisions of the Law, the Group is not yet required to pay any payment in respect of the said levy, and therefore no liability has been recognised in the financial statements in respect of this payment.

c.   Taxation charge:

		30 June 2026 (Unaudited) $'000		30 June 2025 (Unaudited) $'000
Current income tax charge		(21,273)		(22,850)
Prior years income tax credit		2,596		-
Deferred tax relating to origination and reversal of temporary differences (note 9)		(8,123)		(7,414)
Total taxation expense		(26,800)		(30,264)

NOTE 7- Property, Plant and Equipment 

a.   Composition:

		Oil and gas Assets $'000		Leased assets $'000		Furniture, fixtures and equipment $'000		Total $'000
Cost:
At 1 January 2025		3,360,476		18,349		2,741		3,381,566
Additions		390,756		8,988		937		400,681
Lease disposal		-		(11,250)		-		(11,250)
Capitalised borrowing cost		40,144		-		-		40,144
Change in decommissioning provision		547		-		-		547
Total cost at 31 December 2025 (Audited)		3,791,923		16,087		3,678		3,811,688
Additions  (1)		287,279		2,787		532		290,598
Asset disposal		(868)		-		-		(868)
Capitalised borrowing cost		30,416		-		-		30,416
Change in decommissioning provision		(3,769)		-		-		(3,769)
Total cost at 30 June 2026 (Unaudited)		4,104,981		18,874		4,210		4,128,065
Depreciation:
At 1 January 2025		453,452		9,387		1,452		464,291
Charge for the year		271,276		5,755		527		277,558
Lease disposal		-		(7,190)		-		(7,190)
Total depreciation at 31 December 2025 (Audited)		724,728		7,952		1,979		734,659
Charge for the period		105,248		4,403		287		109,938
Asset disposal		(112)		-		-		(112)
Total Depreciation at 30 June 2026 (Unaudited)		829,864		12,355		2,266		844,485
At 31 December 2025 (Audited)		3,067,195		8,135		1,699		3,077,029
At 30 June 2026 (Unaudited)		3,275,117		6,519		1,944		3,283,580

⁽¹⁾ The additions to oil & gas assets in H1 2026 mainly relate to the Katlan development.

Subsequent to the reporting date, the second oil train on the Energean Power FPSO was safely commissioned on 13 July 2026, resulting in an increase in liquids production capacity.

Borrowing costs capitalised for qualifying assets during the year are calculated by applying a weighted average interest rate of 7.46% for the period ended 30 June 2026 (for the year ended 31 December 2025: 7.02%).

b.   Depreciation expense for the year has been recognised as follows:

		30 June 2026 (Unaudited) $'000		30 June 2025 (Unaudited) $'000
Cost of sales		109,234		109,239
Administration expenses		704		647
Total		109,938		109,886

NOTE 7- Property, Plant and Equipment (Cont.)

c.   Cash flow statement reconciliations:

				30 June 2026 (Unaudited) $'000	30 June 2025 (Unaudited) $'000
Additions and disposals to property, plant and equipment			289,730		239,945
Associated cash flows
Payments for additions to property, plant and equipment			(161,003)		(183,521)
Non-cash movements/presented in other cash flow lines
Right-of-use asset additions			(2,787)		(341)
Asset disposal			868		-
Lease payments related to capital activities			4,753		2,677
Movement in working capital			(131,561)		(58,760)

d.  Details of the Group's rights in petroleum and gas assets are presented in note 1.

NOTE 8- Intangible Assets

a.   Composition:

		Exploration and evaluation assets $'000		Other Intangible assets $'000		Total $'000
Cost:
At 1 January 2025		94,366		2,866		97,232
Additions		1,860		51,498		53,358
Capitalised borrowing cost		-		580		580
31 December 2025 (Audited)		96,226		54,944		151,170
Additions		1,565		10,811		12,376
Capitalised borrowing cost		-		2,219		2,219
At 30 June 2026 (Unaudited)		97,791		67,974		165,765
Amortisation:
At 1 January 2025		-		1,129		1,129
Charge for the year		-		570		570
Impairment of exploration and evaluation assets		1,994		-		1,994
Total Amortisation at 31 December 2025 (Audited)		1,994		1,699		3,693
Charge for the period		-		344		344
Total Amortisation at 30 June 2026 (Unaudited)		1,994		2,043		4,037
At 31 December 2025 (Audited)		94,232		53,245		147,477
At 30 June 2026 (Unaudited)		95,797		65,931		161,728

The additions to other intangible assets in H1 2026 are mainly related to Nitzana pipeline.

NOTE 8- Intangible Assets (Cont.)

For further information regarding Nitzana transmission agreement refer to note 11 to the annual financial statements for the year ended 31 December 2025. As of 30 June 2026, approximately US$62 million had been paid, representing approximately 60% of the total expected investment. The remaining investment will be made in accordance with the milestones set out in the agreement with INGL.

b.   Details on the Group's rights in the intangible assets:

As of 30 June 2026, the Group holds two licences to explore for gas and oil, Block 23 and Block 31, which are located in the economic waters of the State of Israel, and remain effective until 13 January 2027.

NOTE 9- Deferred taxes

The Group is subject to corporation tax on its taxable profits in Israel at the rate of 23%. Capital gains tax rates depend on the purchase date and the nature of the asset. The general capital tax rate for a corporation is the standard corporate tax rate.

Tax losses can be utilised for an unlimited period, and tax losses may not be carried back.

According to Income Tax (Deductions from Income of Oil Rights Holders) Regulations, 5716-1956, the exploration and evaluation expenses of oil and gas assets are deductible in the year in which they are incurred.

Below are the items for which deferred taxes were recognised:

		Property, plant and equipment & intangible assets $'000		Right of use asset IFRS 16 $'000		Deferred expenses for tax $'000		Staff leaving indemnities $'000		Accrued expenses and other short‑term liabilities and other long‑term liabilities $'000		Derivative asset $'000		Total $'000
At 1 January 2025		(73,090)		(2,028)		2,709		292		2,992		79		(69,046)
Increase/(decrease) for the year through:
Profit or loss		(679)		190		(546)		5		58		-		(972)
Other comprehensive income		-		-		-		-		-		(8,469)		(8,469)
Cashflow hedge related to basis adjustment												2,492		2,492
At 31 December 2025 (Audited)		(73,769)		(1,838)		2,163		297		3,050		(5,898)		(75,995)
At 1 January 2026		(73,769)		(1,838)		2,163		297		3,050		(5,898)		(75,995)
Increase/(decrease) for the period through:
Profit or loss		(7,787)		371		(594)		59		(172)		-		(8,123)
Other comprehensive loss		-		-		-		-		-		891		891
Cashflow hedge related to basis adjustment		-		-		-		-		-		1,647		1,647
At 30 June 2026 (Unaudited)		(81,556)		(1,467)		1,569		356		2,878		(3,360)		(81,580)

NOTE 9- Deferred taxes (Cont.)

		30 June 2026 (Unaudited) $'000		31 December 2025 (Audited) $'000
Deferred tax liabilities		(86,383)		(81,424)
Deferred tax assets		4,803		5,429
		(81,580)		(75,995)

NOTE 10- Trade and other receivables

		30 June 2026 (Unaudited) $'000		31 December 2025 (Audited) $'000
Financial items    Trade receivables
Trade receivables		99,769		121,006
Accrued Income		4,245		-
Accrued interest income		15		968
Other receivables		6,335		5,743
		110,364		127,717
Non-financial items
Prepayments		8,413		10,231
Refundable excise		16,061		7,954
VAT receivable		9,209		-
		33,683		18,185
Total trade and other receivables		144,047		145,902

NOTE 11- Inventories

		30 June 2026 (Unaudited) $'000		31 December 2025 (Audited) $'000
Hydrocarbon liquids		802		1,031
Natural gas		492		506
Raw materials and supplies		21,024		19,454
Total		22,318		20,991

NOTE 12- Borrowings

Senior secured notes (the "notes"):

As of 30 June 2026, the Group has three senior secured notes series with an aggregate principal amount of US$2,000 million, issued by Energean Israel Finance Ltd (a 100% subsidiary of the Company) there have been no changes to the composition of the notes since 31 December 2025.

NOTE 12- Borrowings (Cont.)

US$750 million Term Loan:

Energean Israel Finance Ltd holds a 10-year, senior-secured term loan with a banking corporation in Israel as the facility agent and arranger for US$750 million (the "Term Loan"), which used for refinance its 2026 senior secured notes and provided additional liquidity for the Katlan development. The Term Loan is secured on the assets of the Group (including the Company's shares), non-recourse to Energean plc and has a bullet repayment in 2035. As at 30 June 2026, the Term Loan was fully drawn (US$750 million), unchanged since 31 December 2025.

US$70 million Unsecured Term Loan:

The Company has an unsecured term loan facility agreement with a banking corporation in Israel for US$70 million ("Unsecured Term Loan"), to fund the development of the Nitzana pipeline (see note 8(a)). As at 30 June 2026, US$33.2 million had been drawn under the facility and US$36.2 million was drawn as a letter of credit in favor of INGL, unchanged since 31 December 2025.

a.   Composition:

Series	Type	Maturity	Annual Interest rate	30 June 2026 (Unaudited) Carrying value  $'000	31 December 2025 (Audited) Carrying value  $'000
Non-current
US$ 625 million	Senior secured notes	30 March 2028	5.375%	621,946	621,144
US$ 625 million	Senior secured notes	30 March 2031	5.875%	619,188	618,673
US$ 750 million	Senior secured notes	30 September 2033	8.5%	736,345	735,990
Total senior secured notes				1,977,479	1,975,807
US$ 275 million	Secured term Loan	26 February 2035	3.1%+ BOI	299,845	279,850
US$ 475 million	Secured term Loan	26 February 2035	4.25%+ SOFR	456,643	456,580
US$ 33.2 million	Unsecured term Loan	30 September 2034	3.9%+ SOFR	32,075	31,848
Total bank loans				788,563	768,278
Total borrowings				2,766,042	2,744,085

Interest on each series of the notes and loans is paid semi-annually, on 30 March and on 30 September of each year.

The notes are listed on the TACT Institutional of the Tel Aviv Stock Exchange Ltd. ("TASE").

With regards to the indenture document, signed on 24 March 2021 with HSBC BANK USA, N.A (the "Trustee"), no indenture default or indenture event of default has occurred and is continuing.

b.   Collateral:

The Company has provided/undertakes to provide the following collateral in favor of HSBC BANK USA, N.A, which serves as the "Collateral Agent" under both the notes and the Term Loan:

1)    First rank fixed charges over the shares of Energean Israel Limited, Energean Israel Finance Ltd and Energean Israel Transmission Ltd, the Karish & Tanin Leases, the gas sales purchase agreements ("GSPAs"), several bank accounts, operating permits, insurance policies, the Company's exploration licences and the INGL Agreement.

2)    Floating charge over all of the present and future assets of Energean Israel Limited and Energean Israel Finance Ltd (except specifically excluded assets).

3)    The Energean Power FPSO.

c.   Restricted cash:

As of 30 June 2026, the Company had short-term restricted cash of US$1.9 million (31 December 2025: US$97.6 million), which will be used for the September 2026 interest payment.

NOTE 12- Borrowings (Cont.)

d.   Credit rating:

The senior secured notes have been assigned a Ba3 rating by Moody's and a BB- rating by S&P Global.

NOTE 13- Trade and other payables

		30 June 2026 (Unaudited) $'000		31 December 2025 (Audited) $'000
Current:
Financial items
Trade accounts payable (1) NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS		239,051		159,638
Payables to related parties		31,608		14,812
Other creditors (2)		36,342		36,803
Short term lease liabilities		4,073		5,002
		311,074		216,255
Non-financial items
Accrued expenses		80,806		29,457
Other finance costs accrued		49,447		49,275
Deferred revenues		5,891		5,530
VAT payable		-		9,677
Social insurance and other taxes		754		940
		136,898		94,879
Total current trade and other payables		447,972		311,134
Non-current:
Financial items
Long term lease liabilities		3,421		4,008
		3,421		4,008
Non-financial items
Accrued expenses to related parties		611		409
		611		409
Total non-current trade and other payables		4,032		4,417

⁽¹⁾ The amount includes payables relating to the EPCIC (Engineering, Procurement, Construction, Installation and Commissioning) contract to Technip. According to the agreement with the EPCIC contractor, the last US$210 million of the consideration will be paid in 12 equal quarterly deferred payments started in March 2024 and as such has been discounted at 8.67% per annum (being the yield rate of the senior secured loan notes, matured in 2026, as at the date of agreeing the payment terms). As at 30 June 2026, 10 installments have been paid and the remaining outstanding payable is US$ 34 million (2025: US$67 million).

⁽²⁾ The amount mainly comprises royalties payable to the Israeli government and third parties with regards to the Karish Lease, including US$13.1 million (2025: US$13.1 million) of royalties payable to third parties. Contractual royalties are payable to third-party holders at a total rate of 7.5%, increasing to 8.25% after the date at which the lease in question starts to pay the oil and gas profits levy. The royalty payable to third-party holders under the SPA )Sale and Purchase Agreement( is calculated on the value of the total amount of natural gas and condensate produced at the wellhead without any deduction (except for natural gas and Petroleum (as defined under the Petroleum Law) used in the production process). No contractual royalties under the SPA will be payable on future discoveries that were not part of the original acquisition of the Karish and Tanin leases.

NOTE 14- Equity

Interim dividends:

Dividends of US$39.0 million were declared and paid during H1 2026 (H1 2025: US$95.85 million).

NOTE 15- Financial Instruments

a.   Fair Values of other financial instruments

The following financial instruments are measured at amortised cost and are considered to have fair values different to their book values.

	30 June 2026 (Unaudited)		31 December 2025 (Audited)
	Book Value $'000	Fair value $'000	Book Value $'000	Fair value $'000
Senior secured notes (note 12)	1,977,479	2,015,000	1,975,807	2,026,375

The fair value of the senior secured notes is within level 1 of the fair value hierarchy. The bank loans bears floating interest rates reset periodically to current market rates and its carrying amount is therefore considered to approximate its fair value. The fair values of other financial instruments not measured at fair value includes cash and short-term deposits, trade receivables and trade and other payables equate approximately to their carrying amounts.

b.   Cash Flow Hedging

The Company's cash flow hedge relationships during the six months ended 30 June 2026 comprised the following:

·      Foreign exchange risk - capital expenditure

In January 2025 the Group entered into forward contracts with a bank in Israel to manage the foreign currency risk related to EUR, NOK and GBP payments to suppliers under the Katlan EPCI contract. The forward contracts are subject to different maturity dates and are designed to match the Katlan subsea development milestones completion payments under the host contract and are effective from April 2025 to August 2027. The hedge relationship was deemed effective at inception, and in accordance with the Group's accounting policy, the transaction was subject to cash flow hedge accounting.

·      Commodity price risk

During the period, Energean plc entered into Brent crude oil derivative contracts to hedge the price exposure on a single cargo of the Company's liquids production. The economic benefit of these hedging arrangements was passed through to the Company under corresponding intercompany arrangement, and the hedge relationship is reflected in these financial statements on that basis.

The Group is holding the following foreign exchange forward contracts on 30 June 2026:

	Less than 1 month	1 to 3 months	3 to 6 months	6 to 9 months	9 to 12 months	13 to 24 months	3 to 5 years	Total
Foreign exchange forward contracts highly probable forecast purchases:
- Notional amount (in $'000)	38,246	47,410	79,989	43,835	-	3,633	-	213,113
- Average forward rate (USD/EUR)	1.07	1.08	1.08	1.09	-	-	-
- Average forward rate (USD/GBP)	1.24	1.24	1.24	1.24	-	1.24	-
- Average forward rate (USD/NOK)	11.20	11.19	11.18	11.16	-	-	-

NOTE 15- Financial Instruments (Cont.)

The impact of hedging instruments on the interim consolidated statement of financial position is as follows:

	Notional amount	Carrying amount	Line item in the statement of financial position	Change in fair value used for measuring ineffectiveness for the period
30 June 2026 ($'000)
Foreign exchange forward contracts	3,633	239	Derivative financial instruments- long term	-
Foreign exchange forward contracts	209,480	14,363	Derivative financial instruments- short term	-

The effect of the cash flow hedge in the interim consolidated statement of profit or loss and other comprehensive income is as follows:

Hedged Item	Total hedging gain/(loss) recognised in OCI	Amount reclassified from OCI to profit or (loss) / statement of financial position	Line item in the statement of profit or (loss)
30 June 2026 ($'000)
Highly probable forecast purchases	(3,730)	7,161	Basis adjustment to PPE
Highly probable forecast purchases	(26)	117	Finance income
Highly probable forecast liquids sales	1,810	1,810	Hedging income

No hedge ineffectiveness was recognised in profit or loss during the reporting period.

Set out below is the summary of changes to the cash flow hedge reserve during the reporting period:

($'000)	Cashflow hedge reserve
As at 1 January 2026	19,740
Effective portion of changes in fair value arising from:
Commodity forward contracts - forecast liquids sales	1,810
Foreign exchange forward contracts - forecast purchases	(3,756)
Amount reclassified to profit or loss	(1,927)
Basis adjustment to property, plant and equipment	(7,161)
Tax effect	2,538
As at 30 June 2026	11,244

c.   Financial risk management objectives

In addition to the risks discussed in the consolidated annual financial statements, due to the Term Loan (refer to note 12), the Company has some exposure to interest rate risk. The management carefully considers the future impact of the floating interest fluctuation and will consider mitigation plans as needed and implement accordingly.

NOTE 16- Subsequent events

a.   Commissioning of the second oil train on its Energean Power FPSO was safely completed on 13 July 2026, expanding the Energean Power FPSO's total liquids processing capacity.

b.   Post-period end, in September 2026, the Company signed a new GSPA with Sorek Energy Power Plant Ltd ("Sorek"). The contract is for the supply of gas to Sorek's new H-class power station, which is estimated to be operational in late 2029.

The GSPA is for a term of approximately 15 years for a total contracted quantity of up to approximately 7.7 bcm, representing approximately $1.4 billion in revenues over the life of the contract. The GSPA is for the supply of up to 0.5 bcm/yr once the Sorek is operational, expected from around the end of 2029, rising to up to 0.6 bcm/yr from September 2035 onwards, and includes interruptible volumes during the summer months between late 2029-2035. The contract contains provisions regarding floor pricing, take-or-pay and price indexation and has been signed at terms in line with Energean's other large, long-term gas contracts.

 

END