ENQUEST PLC, 14 August 2012
Results for the six months to 30 June 2012
Strong cash flow generation.
2012 production and major projects on track.
Unless otherwise stated, all figures are before exceptional items and depletion of fair value uplift and are in US dollars.
- EnQuest performed well in H1 2012, delivering production of 20,253 Boepd and revenue of $440m
- 2012 production is on track for EnQuest’s full year target of between 20,000 Boepd and 24,000 Boepd, with further drilling in the second half, including S10 and S11 coming on stream at Don Southwest
- Cash flow from operations continued to be strong, with $240m generated in H1 2012
- Cash capex of $504m was mainly invested in the six well drilling programme and the procurement and re-fit of the floating, production, storage and offloading (‘FPSO’) vessel for Alma/Galia
- Profit after tax increased by 87% to $129m, mainly due to a reduction in income tax expense compared with H1 2011
- The Alma/Galia development project is on track for first oil in Q4 2013 as planned. EnQuest entered into an agreement to farm out 35% of the development to KUFPEC
- Significant business development momentum in H1 2012; including agreements to acquire 60% of the proposed Kraken development, a further 20% of the Kildrummy discovery, the remaining 50% of the Cairngorm discovery and an additional 18.5% of the producing West Don field
- A new credit facility of up to $900m was finalised in Q1 2012
EnQuest CEO Amjad Bseisu said:
“In the first six months of the year, EnQuest made significant progress in business development, project execution and production. Strong productivity from Thistle has helped to ensure that our 2012 full year production estimate remains on target, despite adverse weather conditions in Q1 2012 and third party pipeline shutdowns in Q2 2012. Our Alma/Galia development is on track and we entered into an agreement to farm out 35% to KUFPEC. In addition, we are also working well with our partners to advance the Kraken development to Field Development Plan (‘FDP’) submission.
In the first half of 2012, we agreed six asset acquisition transactions and applied for a number of new blocks through the UK’s 27th licensing round. We have grown our development capability significantly, with employee numbers now approaching four times the level of two years ago. We will continue to bring material new development projects to sanction, both from our existing portfolio of discoveries and new ones, where we aim to be the development partner of choice.”
Please see attached PDF for full release.
For further information please contact:
EnQuest PLC Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive)
Jonathan Swinney (Chief Financial Officer)
Michael Waring (Head of Communications & Investor Relations)
RLM Finsbury Tel: +44 (0)20 7251 3801
Presentation to Analysts and Investors
A presentation to analysts and investors will be held at 09:30 today. The presentation and Q&A will also be accessible via an audio webcast – available from the investor relations section of the EnQuest website at www.enquest.com. A conference call facility will also be available at 09:30 on the following numbers:
UK: +44 (0) 20 7784 1036
USA: +1 646 254 3367
Notes to editors
EnQuest is the largest UK independent producer in the UK North Sea. EnQuest PLC trades on both the London Stock Exchange and the NASDAQ OMX Stockholm. It is a constituent of the FTSE 250 index. Its assets include the Thistle, Deveron, Heather, Broom, West Don, Don Southwest and Conrie producing fields and the Alma and Galia development. At the end of June 2012, EnQuest had interests in 29 production licences covering 36 blocks or part blocks in the UKCS, of which 22 licences are operated by EnQuest.
EnQuest believes that the UKCS represents a significant hydrocarbon basin in a low risk region, which continues to benefit from an extensive installed infrastructure base and skilled labour. EnQuest believes that its assets offer material organic growth opportunities, driven by exploitation of current infrastructure on the UKCS and the development of low risk near field opportunities.
Forward looking statements: This announcement may contain certain forward-looking statements with respect to EnQuest’s expectation and plans, strategy, management’s objectives, future performance, production, costs, revenues and other trend information. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in this presentation should be construed as a profit forecast. Past share performance cannot be relied on as a guide to future performance.