(Alliance News) -Â EnQuest PLC on Tuesday said its full-year production is expected to be "slightly below" the midpoint of its guidance range.
Production averaged 60,777 barrels of oil equivalent per day in the first ten months of 2020. Full-year output is expected to be slightly below the midpoint of its 57,000 to 63,000 barrels per day guidance.
EnQuest is a production and development company with operations in the UK North Sea and Malaysia.
"As previously guided, group production is lower in the second half compared to the first half of the year, reflecting the maintenance shutdown schedule as well as an unplanned outage at PM8/Seligi" offshore Malaysia, the firm noted.
A strong production performance at Kraken offshore the UK resulted in average gross production of 37,783 barrels of oil per day. Full year production is expected to be "slightly above" the 30,000 to 35,000 barrels per day guidance range.
Operations continue to be "materially unaffected" by Covid-19, EnQuest added.
Free cash flow generation was USD95 million for the ten months to October 31.
"The group has delivered production in line with guidance year to date, with Kraken continuing to perform well. We expect production to be slightly below the mid-point of the 57,000 to 63,000 Boepd guidance range for the full year 2020, reflecting the impact of the unplanned outage at PM8/Seligim," said Chief Executive Amjad Bseisu.
Bseisu added: "We have continued to generate positive free cash flows in the period and have again made a voluntary early payment of USD40 million against the April 2021 scheduled amortisation of our senior credit facility. We remain focused on cost control and capital discipline to maintain free cash flow breakeven at around USD33/Boe in 2020."
Shares in EnQuest were up 4.2% at 12.30 pence in London on Tuesday.
By Lucy Heming;Â firstname.lastname@example.org
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