EnQuest today reported a major jump in profits for 2018, justifying many of its asset purchases last year.
The London-listed firm hit pre-tax profit of almost £220 million in 2018, a significant surge from £35m the previous year.
The firm also saw ETIBA of £541m in 2018, up 135.9% compared to 2017’s result of £229m.
EnQuest chief executive, Amjad Bseisu, said: “In 2018, the Group met its financial and operational targets.
“Production increased by 48%, just above the midpoint of our guidance, which, along with strong cost control, drove a significant improvement in cash generation allowing the Group to reduce net debt.
“FPSO performance has been the main limiting factor in achieving Kraken’s full production potential. As such, our clear operational priority is to improve Kraken’s FPSO uptime and efficiency. We are working with the FPSO operator on a number of improvement initiatives.
“We are committed to further reducing our debt, and expect our net debt to EBITDA ratio to trend towards 2x this year and intend to operate within our 1-2x target in the future.
“The acquisition of Magnus has added material value to the business through significant production and reserve growth, and the application of our production enhancing capabilities are already improving performance above original expectations.”
EnQuest reported a near-50% increase in production across the group last year, and predicted a 20% jump in 2019.
London-listed EnQuest pumped out 55,447 barrels of oil equivalent per day (boepd) last year, in line with expectations.
The company revised its full-year production guidance range to 54-56,000 boepd at the start of December, from 50-58,000 previously.
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