Oil firm profit falls
Enquest ‘performing well’ in testing conditions
Kraken: ‘strong performance’
North Sea oil explorer Enquest said lower prices caused revenue and profit to fall but it continues to perform well in challenging conditions.
Turnover in the six months to end June 2020 came in at $450.7 million (2019: $858.2m) and EBITDA at $274.9m (2019: $525.9m).
Net production averaged 66,055 Boepd; full year production guidance range of 57,000 Boepd to 63,000 Boepd maintained, although currently expects to be towards the upper part of this range.
There was a strong performance from Kraken with gross production of 38,967 Bopd (net 27,472 Bopd), c.19% higher than the same period in the prior year.
Operations were “materially unaffected” by COVID-19.
Chief executive, Amjad Bseisu, said: “With our ongoing focus on operational excellence, we have continued to exceed our operational targets, including production of around 66,000 Boepd in the first half of 2020.
“Our difficult and early decisions to shut down our higher cost assets have resulted in a substantial cost reduction programme, which is on track. We remain confident that we will achieve our 2020 targets, with free cash flow breakeven for the full year at c.$33/Boe.”
The company has acquired a material operating interest in the Bressay field.