23rd Jan 2015 07:41
LONDON (Alliance News) - EnQuest PLC on Friday said its full-year production rose in 2014 towards the top end of its guidance, but revenue and earnings are both set to be lower year-on-year.
The oil and gas explorer, which was relegated from the FTSE 250 earlier this year following a sharp decline in its shares on the back of the declining oil price, said its provisional production total for calendar 2014 was 28,267 barrels of oil equivalent per day, up 17% on its 2013 total.
It gave guidance for production of between 33,000 and 36,000 boepd for 2015.
But Enquest said revenue is set to fall year-on-year on the back of the lower oil price towards the end of the year, down to around USD950 million, against USD961 million last year, while earnings before income, taxation, depreciation and amortisation is expected to be USD530 million to USD580 million, down from USD621.3 million last year.
For 2015, the company has hedged around 8 million barrels at prices in the high USD80s per barrel, meaning it expects revenue in the coming year to face only a minimal impact from oil price volatility. The group added its lenders have relaxed the covenants on its debt facilities owing to the lower oil price, and the group's decision to cut its capital expenditure plan for 2015 to around USD600 million, down 40% from its plan prior to the oil price collapse.
"The rapid change in the macro environment with respect to the oil price has affected all in the industry, not least EnQuest," said Chief Executive Amjad Bseisu.
By Sam Unsted; [email protected]; @SamUAtAlliance
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