3rd Sep 2020 10:20
(Alliance News) - Enquest PLC on Thursday put its poor financial performance in the first half down to a drop in oil prices this year, though maintained its production guidance.
The UK-focused petroleum exploration and production company swung to a pretax loss for the half year ended June 30 of USD373.4 million from a USD38.7 profit million a year prior.
Revenue was down 48% to USD439.4 million from USD815.4 million a year before. The drop in revenue was driven mostly by the reduction in the oil price.
The company's revenue is predominantly derived from crude oil sales and for the first half, crude oil sales totaled USD375.5 million compared with USD761.9 million a year prior.
Revenue from the sale of gas and condensate was also down to USD27.6 million from USD79.9 million the year before, reflecting significantly lower market prices for gas.
Total production was 66,055 barrels of oil equivalent per day, only slightly down from 68,548 barrels of oil equivalent per day a year prior. The full year production guidance of 57,000 to 63,000 barrels of oil equivalent per day was maintained.
"During the second half of 2020, the strong production performance from the first half of the year is expected to be partially offset by planned maintenance shutdowns, the cessation of production at Alma/Galia in June, lower expected production from the Don's and natural field declines," Enquest said.
The company did not mention an interim dividend.
Chief Executive Amjad Bseisu said: "Looking further ahead, I am delighted we have agreed the acquisition of a material operating interest in the Bressay field. The addition of up to 115 million barrels of net 2C resources materially increases our 2C resource base and provides Enquest an opportunity to demonstrate further its proven capabilities in low-cost drilling and heavy oil."
Enquest shares were down 8.9% at 11.96 pence each on Thursday morning in London.
By Greg Roxburgh; [email protected]
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