Full Year Results
Results for the year ended 31 December 2017 and 2018 outlook
20 March 2018
Unless otherwise stated, all figures are on a Business performance basis and are in US Dollars.
- Kraken first oil delivered in Q2; full cycle gross project capital expenditure further reduced
- Acquisition of interests in Magnus and the Sullom Voe Oil Terminal completed in December
- Group production averaged 37,405 Boepd in 2017, down 5.9% on 2016
- Revenue of $635.2 million (2016: $849.6 million) and EBITDA of $303.6 million (2016: $477.1 million); lower realised prices, reflecting the favourable impact of commodity hedges in 2016
- Cash generated from operations of $327.0 million (2016: $408.3 million)
- Cash capital expenditure of $367.6 million (2016: $609.2 million)
- Cash* and available bank facilities amounted to $244.4 million at 31 December 2017, with net debt of
$1,991.4 million. Excluding Payment in Kind interest, net debt was $1,900.9 million
- Reported post-tax non-cash impairments of $107.2 million
- Net 2P reserves of 210 MMboe at the end of 2017
* Excluding $26.5 million of cash from the ring fenced working capital facility associated with SVT.
- Guidance range of c.50,000 to 58,000 Boepd; Kraken gross production has averaged around 38,000 Bopd in the first two months of the year
- Unit opex expected to be c.$24/Boe, including costs associated with planned workovers
- Cash capital expenditure expected to be c.$250 million; includes drilling programmes at Kraken (DC4), PM8/Seligi and Heather
- Kraken full cycle gross project capital expenditure further reduced to c.$2.3 billion, more than 25% lower than originally sanctioned
- The Group has hedged c.7.5 MMbbls of oil at an average price of c.$62/bbl
EnQuest Chief Executive, Amjad Bseisu, said:
"2017 was a transformational year for EnQuest. The Group delivered the complex Kraken project on schedule and expects full cycle gross capital expenditure to be significantly below budget, while the acquisition of the Magnus oil field and Sullom Voe Oil Terminal is aligned with the Group’s asset life extension capabilities and provides further opportunities for synergies and growth.
"Production performance in January and February was strong and the Group expects a material increase in production in 2018. This growth, combined with a focus on cost control and a substantially reduced cash capital expenditure programme, should see the Group generate increased cash flow, enabling it to manage its liquidity and reduce debt.
"Beyond 2018, the Group has significant potential within the existing portfolio, in particular at Magnus and PM8/Seligi, but also with potential future developments at Kraken, positioning EnQuest to deliver long-term sustainable growth."
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