20th Mar 2018 09:24
Production in 2017 dipped by 5.9% to 37,405 barrels of oil equivalent per day. The drop, it said, was due to the performance of the electrical submersible pump at the Alma/Galia field in the North Sea as well as lower contributions from the Scolty/Crathes and Kraken developments.
However, EnQuest is guiding for a sharp increase in production in 2018 of between 50,000 boepd and 58,000 boepd. Kraken, which achieved first oil in the second quarter of 2017 and was a major focus in the year, averaged around 38,000 boepd in the first two months of 2018.
Revenue and other income for the year was
EnQuest has swung to a pretax loss in 2017 of
Overall revenue, profit, and cash generation were affected by lower realised prices due to the forward prices available at the time EnQuest implemented its hedging programme.
Cash capital expenditure fell to
EnQuest is not planning on paying a dividend in the near future.
The company said 2018 will be a "new phase". Kraken is going well, it said, and with further drilling programmes underway a period of heavy capital investment has now passed. The aim in future will be to maximise cash flow to reduce debt, EnQuest said.
Chief Executive Amjad Bseisu said: "2017 was a transformational year for EnQuest. The group delivered the complex Kraken project on schedule and expects full cycle gross capital expenditure to be significantly below budget, while the acquisition of the Magnus oil field and Sullom Voe oil terminal is aligned with the group's asset life extension capabilities and provides further opportunities for synergies and growth."
EnQuest shares were up 6.1% on Tuesday at
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