5th Sep 2019 10:33
(Alliance News) - Energy firm EnQuest PLC on Thursday reported a steep rise in interim profit and revenue after strong production growth.
EnQuest, which operates in the North Sea and Malaysia, also said Chair Jock Lennox will be stepping down at the end of September. He will be replaced by former BG Group PLC operations chief Martin Houston.
Pretax profit for the six months to June was USD38.7 million, doubled from a year before. Excluding exceptional items, the figure was a USD158.8 million profit after a USD15.4 million loss a year prior.
EnQuest's earnings before interest, taxes, depreciation, and amortisation rose 69% to USD525.9 million.
Production climbed 27% to 68,548 barrels of oil equivalent per day on average, helping revenue surge 57% to USD858.2 million. Guidance for 2019 of between 63,000 barrels and 70,000 barrels is unchanged.
EnQuest said Kraken efficiency improved during the year, with Magnus, also in the North Sea, meeting expectations while PM8/Seligi in Malaysia beat expectations.
Chief Executive Amjad Bseisu said: "The group has delivered a strong performance in the first half of 2019. Production was towards the top end of our full year guidance range and we continue to control our operating expenditures.
"We have generated strong cash flows in the period and significantly reduced our debt, with our net debt to Ebitda ratio at 1.8 times, ahead of our target to be below 2 times by the end of 2019."
"We continue to assess options to develop the significant potential within our reserves and resources across our portfolio, particularly at Kraken, Magnus and PM8/Seligi," he added.
Commenting on the change of chair, Bseisu said: "On behalf of the board and the management team, I would like to thank Jock for his important contribution to EnQuest during his tenure and our Senior Independent Director Helmut Langanger for running a rigorous and successful succession process.
"I would like to also welcome Martin as our new chair for the next stage of our journey. With his extensive board level and operational experience and deep industry knowledge, Martin will provide invaluable contributions to EnQuest that will help in executing our business strategy."
EnQuest shares were 6.3% higher on Thursday morning at a price of 19.68 pence each.
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