26th Mar 2014 09:00
LONDON (Alliance News) - EnQuest PLC Wednesday said its pretax profit fell in its full year 2013 despite an increase in revenues, as costs and expenses hit the company.
The oil and gas development and production company, with operations in the UK Continental Shelf said its pretax profit fell 18% to USD330.9 million from USD403.4 million in the previous year despite an 8.1% increase in revenues to USD961.2 million from USD889.5 million in 2012.
The company said its revenues jumped as production increased 6.2% to 24,222 barrels of oil equivalent per day from 22,802 barrels per day the previous year, due to additional production from its Heather and Broom sites as well as its newly acquired Alba field offsetting marginally lower production from its Thistle site.
However, EnQuest added that its cost of sales also increased 18% to USD540.8 million from USD458.4 million the previous year, leading to a 2.5% fall in gross profit for the company to USD420.4 million from USD431.1 million in 2012.
The company said its cost of sales increased due to a change in its lifting position, increased transportation costs, and the purchase of interest in the Alba field during the period.
EnQuest also said its general and administrative expenses increased to USD25.0 million from USD6.7 million during the period, and its other expenses increased to USD20.5 million from USD6.4 million in 2012.
The company noted that its Alma and Galia production start-ups are anticipated in the second half and it set production guidance for 2014 at a positive 25,000 to 30,000 barrels of oil equivalent per day.
EnQuest shares were down 5.3% to 136.50 pence, making it the biggest FTSE 250 faller in early trading Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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