21st Nov 2019 10:01
(Alliance News) - Oil and gas producer EnQuest PLC is on track for annual guidance, it said Thursday, with production growth "strong".
Average production for the ten months to the end of October was 68,501 barrels of oil equivalent per day, up 26% from the same period a year before.
The rise in output comes from a 64% increase in northern North Sea production mainly due to an increased stake in the Magnus field. Central North Sea production rose 12%, and output from the Kraken field was 9.1% higher.
In Malaysia, EnQuest's production increased marginally to 8,390 barrels of oil equivalent per day.
London-based EnQuest has reiterated 2019 production guidance of 63,000 barrels of oil equivalent per day to 70,000 barrels per day. In 2018, the figure was 55,447 barrels per day, a 48% rise on the year before.
On the financial front, EnQuest reduced net debt as at October to USD1.56 billion, 4.9% lower than the end of June, and it aims to have that below USD1.5 billion by the end of 2019.
"The group has continued to deliver on its targets for the year against its strategic priorities of deliver, de-lever and grow. Production at the end of October was 68,501 barrels of oil equivalent per day, with Kraken in particular performing strongly. Production efficiency at Kraken has been over 90% in the last few months," said Chief Executive Amjad Bseisu.
"We have generated strong cash flows in the period and materially reduced our debt, with our net debt to earnings before interest, tax, depreciation, and amortisation ratio at 1.7 times, and we now look to reduce it further to the range of 1.0 times to 1.5 times."
EnQuest shares were up 0.9% at 18.67 pence early Thursday in London.
By George Collard; [email protected]
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