EnQuest PLC Preliminary Results
ENQUEST PLC, 21 March 2017. Results for the year ended 31 December 2016*.
Kraken on track and 2017 guidance reiterated
Magnus/SVT acquisition progressing to plan
2016 results highlights
- Production averaged 39,751 Boepd in 2016, up 8.7% on 2015
- 2016 unit operating costs of $24.6/bbl compared to $29.7/bbl in 2015
- 2016 cash capex of $609.2 million compared to $751.1 million in 2015
- Revenue of $849.6 million and EBITDA** of $477.1 million, reflecting EnQuest’s strong operational performance and hedging activities
- Cash generated from operations of $408.3 million, up from $221.7 million in 2015
- Net 2P reserves of 215 MMboe at the end of 2016, 5.9% up on the 203 MMboe at the end of 2015
- Comprehensive financial restructuring significantly improved EnQuest’s liquidity position
- Net debt at the year end, was $1,796.5 million, compared to $1,548.0 million at the end of 2015
2017 update and outlook
- The Kraken development continues under budget and on track for first oil in Q2 2017
- EnQuest’s confirms 2017 average production guidance, in the range of 45,000 Boepd to 51,000 Boepd for the full year – dependent on the timing of Kraken first oil
- EnQuest also remains on course to reduce average unit opex further in 2017 to be within the range of $21/bbl to 25/bbl including Kraken production, driven by further cost reductions across the supply chain. Cash capex is set to be in the range $375 million to $425 million in 2017, the majority of which is being invested in the Kraken development
- Hedging of c.6 million barrels for 2017, at an average of c.$51/bbl
- Total debt facilities of c.$2.1 billion remain in place
- The proposed EnQuest acquisition of interests in the Magnus oil field and the Sullom Voe terminal was announced on 24 January. Transition activities have begun and are ongoing; the process is expected to take 6-12 months, with no cash outlay for EnQuest
* Unless otherwise stated, all figures are on a business performance basis and are in US dollars.
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