Enquest's H1 core earnings rise, capex guidance lifted

13th Aug 2014 10:00

Enquest, the North Sea-focused oil producer, increased its production in the first half by 18% year-on-year, the company announced on Wednesday.The group's revenue was $503.8m (£299.6m), while earnings before interest, tax, depreciation and amortisation rose 3.6% to $284m (£168.7m).Enquest produced 3,837 barrels of oil equivalent per day more than it did in the same period in 2013, while earnings were boosted by the price per barrel rising 1.2% to $110.However, the company saw its profit before tax and net finance costs fall 11% to $149.4m as a result of the expenses related to the acquisition of the Greater Kittiwake Area fields in the first quarter.The company also revealed it expects its capital expenditure to reach $1.2bn this year, higher than the $1bn the group had originally forecast, and it will include investments in new projects in the North and the Malaysian sea."In 2014 so far, Enquest has again delivered good growth in reserves and production," said Enquest chief executive officer Amjad Bseisu."Production was up 18% in the first half of 2014 and acquisitions, combined with the new development contract award in Malaysia are expected to result in an incremental increase of approximately 20 million barrels of oil equivalent in net proven plus probable reserves."Mark Henderson, analyst at Westhouse Securities, said the full impact of the delay in the Alma/Galia development will be felt in 2015, meaning estimates for the next 12 months are likely to go down.Enquest shares were down 4.09% to 119.6p at 10:38 on Wednesday.DC