EnQuest 2015 interim results

DividendMax Ltd.

EnQuest 2015 interim results


Production averaged 29,665 Boepd, up 17.3%, on H1 2014, reflecting a strong operational performance and continued  high levels of production efficiency. EnQuest's Malaysian assets contributed 7,777 Boepd.

2015 full year guidance is maintained at an average of between 33,000 Boepd and 36,000 Boepd, including first  production from Alma/Galia.

Revenue of $444.0 million and EBITDA of $226.7 million reflected the decline in the oil price, partially offset by the positive  impact of the hedging programme.

Alma/Galia: Commissioning of subsea and topside systems is largely complete, with first oil expected within a few weeks.

Kraken: The project continues to be on budget and on schedule for first oil in 2017. Batch drilling of the top-holes at the  first drill centre has been completed. The Floating Production, Storage and Offloading vessel ('FPSO') continues to be on  track for delivery in 2016.

The programme of cost reduction initiatives continues and is on track for unit opex of an average of c.$38/bbl in 2015, and  average unit opex in the low $30s/bbl is now anticipated in 2016


EnQuest CEO Amjad Bseisu said:

"EnQuest has responded well to the lower oil price environment, delivering a strong performance driven by production gains and cost reductions, both core areas of expertise, and by a well executed hedging programme. EnQuest now anticipates that 2016 full year unit opex will be in the low $30s/bbl.

"EnQuest achieved continuing high levels of operating efficiency in the North Sea and a good production performance in Malaysia, with PM8/Seligi's first H1 contribution. Our two major developments are progressing well and we expect first oil from Alma/Galia within a few weeks. 

"EnQuest delivered an H1 2015 EBITDA of $226.7 million, approximately 20% lower than in H1 2014; a strong performance, given the almost 50% drop in the oil price.

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