Results for the period ended 31 December 2023
Summary production statistics and key financials
| 2023 | 2022 | Change % | |
| Production (Boepd) | 43,812 | 47,259 | (7.3) |
| Revenue and other operating income ($m)1 | 1,459.0 | 1,839.1 | (20.7) |
| Realised oil price ($/bbl)1,2 | 81.4 | 88.9 | (8.4) |
| Average unit operating costs ($/Boe)2 | 21.9 | 22.7 | (3.5) |
| Adjusted EBITDA ($m)2 | 824.7 | 979.1 | (15.8) |
| Cash expenditures ($m) | 211.1 | 174.8 | 20.8 |
| Capital2 | 152.2 | 115.8 | 31.4 |
| Abandonment | 58.9 | 59.0 | (0.0) |
| Free cash flow ($m)2 | 300.0 | 518.9 | (42.2) |
| 2023 | 2022 | ||
| Net (debt)/cash ($m)2 | (480.9) | (717.1) | (32.9) |
| Statutory measures | 2023 | 2022 | Change % |
| Reported revenue and other operating income ($m)3 | 1,487.4 | 1,853.6 | (19.8) |
| Reported gross profit ($m) | 540.7 | 652.9 | (17.2) |
| Reported profit/(loss) after tax ($m) | (30.8) | (41.2) | 25.2 |
| Reported basic earnings/(loss) per share (cents) | (1.6) | (2.2) | 27.3 |
| Cash generated from operations ($m) | 754.2 | 1,026.1 | (19.0) |
| Net increase/(decrease) in cash and cash equivalents ($m) | 12.9 | 39.1 | (67.0) |
Notes:
1 Including realised losses of $11.3 million (2022: realised losses of $203.7 million) associated with EnQuest’s oil price hedges
2 See reconciliation of alternative performance measures within the 'Glossary - Non-GAAP measures'. Note, EnQuest defines net debt as excluding finance lease liabilities
3 Including net realised and unrealised gains of $17.2 million (2022: net realised and unrealised losses of $189.3 million) associated with EnQuest's oil price hedges
2023 key performance indicators
2023 performance improved versus 2022 with respect to Lost Time Incident (‘LTI’) performance but the Group was disappointed to see LTIs during the year. EnQuest remained in the upper quartile for this metric and has engaged in a programme of intervention, working closely with contractors to ensure that all people working on EnQuest installations are aligned with our safety culture.
The decrease in production was primarily driven by natural declines across the portfolio partially offset by strong uptime and well programme activities at Magnus and additional gas production from Seligi.
Average unit operating costs were primarily impacted by work programme optimisation across the portfolio, combined with higher lease charter credits and lower diesel costs at Kraken, partially offset by the strengthening of Sterling against the US Dollar.
Cash generated from operations reflected lower production and lower commodity prices partially offset by effective cost control.
Increased cash capital and decommissioning expense reflected well programmes at Magnus and Golden Eagle, in addition to well plug and abandonment decommissioning activities at Heather/Broom, and Thistle/Deveron.
Strong free cash flow generation was utilised to deleverage the Group’s balance sheet. During 2023, the Group aligned debt maturities to 2027 following a new term loan being agreed and the settlement in full of the 7.00% Sterling retail bond.
During the year, the Group produced c.16 MMboe of its year-end 2022 2P reserves base.
Total CO2e emissions were marginally lower, reflecting lower fuel gas and diesel usage.
Notes:
1 Lost Time Incident frequency represents the number of incidents per million exposure hours worked (based on 12 hours for offshore and eight hours for onshore).
2 See reconciliation of alternative performance measures within the ‘Glossary – Non-GAAP measures’ starting on page 193 of the 2023 Annual Report and Accounts.