19th Aug 2015 06:33
LONDON (Alliance News) - Enquest PLC Wednesday said it swung to a pretax loss in the first half of 2015 after revenue fell on the back of lower oil prices and its finance costs rose due to its rising debt but the company reaffirmed its full year guidance as more projects are expected to come online in the second half.
The oil and gas development and production company reported a first half pretax loss of USD34.6 million, swinging from a USD78.6 million profit a year earlier as revenue fell to USD414.6 million from USD503.6 million.
The loss was caused by the drop in revenue and finance costs rising to USD102.6 million from only USD31.0 million. Oil prices were down 29.5% to around USD77.5 per barrel from USD110.0 per barrel a year earlier.
The loss before impairments and exceptional items was USD46.0 million, compared to a USD41.1 million loss a year earlier.
Net debt rose to USD1.28 billion at the end of June compared to USD932.8 million at the end of June 2014.
Capital expenditure for the full year remains on track to be in the region of USD600 million and operating expenses continue to fall. Unit operating costs in the first half averaged USD39.0 per barrel comapred to USD45.9 per barrel and this is expected to fall to around USD38 per barrel for the full year.
"Cost reductions are being achieved through substantial direct cost savings and also through the addition of lower cost barrels coming onstream from our successful drilling programme," it said.
Production in the period was up 17% to 29,665 barrels of oil equivalent per day and its full year guidance remains in place in the range of 33,000 to 36,000 barrels of oil equivalent per day as the Alma and Galia fields are expected to produce first oil "in the coming weeks".
The Kraken project in the UK North Sea also remains on budget and on schedule to produce first oil in 2017.
"EnQuest achieved continuing high levels of operating efficiency in the North Sea and a good production performance in Malaysia, with PM8/Seligi's first first half contribution. Our two major developments are progressing well and we expect first oil from Alma/Galia within a few weeks," said Chief Executive Amjad Bseisu.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Enquest