(Alliance News) - EnQuest PLC on Thursday reported a swing to profit in the first half of 2021 but warned full-year production may be at the lower end of the guidance range.
The oil and gas production company, which has operations in the UK's North Sea and Malaysia, booked pretax profit of USD49.1 million in the six months to June 30, swung from a loss of USD373.4 million last year.
Revenue was up 9.7% at USD481.3 million from USD438.7 million. EnQuest said revenue grew on the back of materially higher oil prices being partially offset by lower production.
The company's net debt reduced to USD1.18 billion at June 30 from USD1.27 billion at December 31 due to strong free cash flow generation. Total cash and available facilities was USD303.4 million at June 30 compared to USD284.1 million at December 31.
"The group delivered strong free cash flow in the first half which reduced net debt," said Chief Executive Amjad Bseisu.
"Performance at Kraken has been good with the FPSO performing well, while production at PM8/Seligi has been better than expected as a result of the acceleration of initial restoration activities following the riser detachment."
Looking forward, EnQuest expects 2021 average net production to be at the lower end of the guidance range of 46,000 to 52,000 barrels of oil equivalent per day. This reflects expected performances at Magnus, the Greater Kittiwake Area and PM8/Seligi over the course of the second half of the year, it says.
The oil and gas producer declared no interim dividend.
Shares were down 8.9% at 23.00 pence in London on Thursday.
By Josie O'Brien; josieobrien@alliancenews.com
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Enquest (ENQ)