(Sharecast News) - Oil and gas independent EnQuest reported a strong set of results for 2022 on Wednesday, with net production coming in at an average of 47,259 barrels of oil equivalent per day, up from 44,415 equivalent daily barrels in 2021.
The London-listed company put the growth down to improved performances at Magnus and PM8-Seligi, and the contribution from Golden Eagle.
Its revenue and other operating income increased to $1.84bn from $1.32bn year-on-year, while adjusted EBITDA ticked up to $979.1m from $742.9m, due to higher oil prices and production.
Cash generated from operations totalled $1.03bn, rising from $756.9m in 2021, with the firm's free cash flow generation jumping to $518.9m, compared to $396.8m in the prior year.
EnQuest's cash and available facilities totalled $348.9m at the end of 2022, with net debt reduced to $717.1m from $1.22bn in 2021.
However, the company reported a statutory loss after tax of $41.2m, swinging from a profit after tax of $377m in 2021, which the board put down to a non-cash deferred tax liability associated with the UK energy profits levy.
As for 2023, EnQuest reported that year-to-date March production averaged around 47,800 barrels of oil equivalent per day, while net debt totalled $624.3m at the end of February.
During the first quarter, the firm repaid $118m of its reserves-based lending facility, with drawings reduced to $282m.
The company also had hedges in place for around 7.9 million barrels of oil, mainly through the combination of puts and costless collars, with an average floor price of $58 per barrel, and a ceiling associated with the 3.3 million barrels of costless collars at $75 per barrel.
For 2023, EnQuest said it expected its full-year average net group production to be between 42,000 and 46,000 barrels of oil equivalent per day, with full-year operating costs expected to be around $425m.
The firm's cash capital expenditure was expected to be about $160m, and cash decommissioning expenditure was expected to be around $60m.
"Throughout 2022, we continue to demonstrate progress against our strategic priorities of 'deliver, de-lever and grow'," said chief executive officer Amjad Bseisu.
"We continue to progress our new energy and decarbonisation ambitions at the Sullom Voe Terminal and delivered a 24-well abandonment programme, the largest multi-asset well decommissioning campaign seen in the UK Northern North Sea, demonstrating strong capability as a transition company.
"Our integrated, capability-led business model and our advantaged tax position in the UK enhance our ability to pursue accretive mergers and acquisitions."
Bseisu said the company had continued to perform well against its full-year targets, with production to the end of March averaging around 47,800 barrels of oil equivalent per day, as it further reduced its net debt.
"Throughout 2023, we will remain focused on driving performance in our upstream and decommissioning businesses while pursuing our decarbonisation and new energy opportunities in a capital-light manner.
"We also intend to pursue balanced and disciplined capital allocation that will include shareholder returns in the near future.
"With our differentiated business model and the resilience, creativity and adaptability of our people, we are well positioned to deliver on our plans for the future."
At 0911 BST, shares in EnQuest were up 2.34% at 19.28p.
Reporting by Josh White for Sharecast.com.
Enquest (ENQ)