Results for the year ended 31 December 2024 and 2025 outlook
Unless otherwise stated, all figures are in US Dollars. Comparative figures for the Income Statement relate to the year ended 31 December 2023 and the Balance Sheet as at 31 December 2023. Alternative performance measures are reconciled within the ‘Glossary – Non-GAAP measures’ at the end of the Financial Statements.
EnQuest Chief Executive, Amjad Bseisu, said:
“The Group delivered another outstanding year of operational performance in 2024, with production efficiency at 90% across the asset portfolio, representing a continuation of the excellence that defines our status as a top-quartile operator and expert in late-life asset management. After producing 40.7 Kboed in 2024, year-to-date production from our existing portfolio, as of the end of February 2025, was 43.0 Kboed (excluding Vietnam), tracking ahead of our guidance range of 40–45 Kboed, which includes approximately 5 Kboed of pro forma volumes for Vietnam. Demonstrating our differentiated operational capability across the transition lifecycle, we have continued to consolidate our position as a leading exponent of decommissioning activities, having been responsible for more than 35% of the wells plugged and abandoned in the North Sea over the past three years.
“In recent months, the Group has executed successive material growth transactions across South East Asia, providing geographic and commodity diversification within the portfolio. Our entry into Vietnam, through the Block 12W acquisition, and our increased presence in Malaysia, with the enhancement of our Seligi gas agreement and the DEWA gas development PSC award, are all underpinned by leveraging our differentiated operating capability to create asset value. As EnQuest continues to pursue growth in the UK North Sea and further potential new country entries in South East Asia, these transactions underscore our commitment to growth, a disciplined approach to M&A, and a strategy to invest capital where we identify the most favourable returns.
“Our foundation for growth is robust and we are well-positioned to transact, with our transaction ready liquidity increasing to c.$550 million at the end of February, following the latest redetermination of the Group’s reserve-based lending (‘RBL’) facility, which remains fully undrawn. Having consistently delivered against production, operational and cost targets, we have generated material free cash flows across recent years, even during periods of reduced commodity prices. This commitment to delivery, against the backdrop of a challenging fiscal environment in the UK, has seen us reduce EnQuest net debt by more than $1.6 billion since its peak.
“Reflecting the strength of our core business and the Group’s commitment to sustainable shareholder returns, I am pleased that the Board has proposed a final 2024 dividend of $15 million, subject to shareholder approval."
2024 performance
- EnQuest continued to deliver top quartile performance across its asset portfolio, which is 96% operated by the Group.
- Group operated production efficiency c.90%, delivering average production of 40,736 Boepd (2023: 43,812 Boepd).
- 2P reserves 168.6 MMboe (2023: 174.9 MMboe), 14.0 MMboe of production almost fully replaced by South East Asian growth.
- Investment in fast payback projects to diversify production, manage natural field decline, lower costs and reduce emissions.
- $95.1 million reduction in EnQuest net debt, to $385.8 million (31 December 2023: $480.9 million).
- Revenue and other income $1,180.7 million (2023: $1,487.4 million); adjusted EBITDA $672.6 million (2023: $824.7 million); reported profit after tax $93.8 million (2023: $30.8 million loss).
- Capital investment $252.9 million (2023: $152.2 million), inclusive of $65.9 million Magnus Flare Recovery project. Decommissioning expenditure $60.5 million (2023: $58.9 million), focused on well plug and abandonment campaigns.
- Maiden shareholder distribution in 2024, $9 million share buyback completed.
2025 outlook
- 2025 is a pivotal year, with EnQuest focused on delivering a transformational UK deal and accelerating its growth in South East Asia.
- In the UK North Sea 2024 saw transactional activity fall, but with fiscal clarity provided by the UK Autumn Budget statement, the Group continues to progress several UK transaction processes.
- In South East Asia, EnQuest has recently delivered the acquisition of Harbour Energy’s Vietnam business (7.5 MMboe net 2P reserves, c.5.3 Kboed of pro forma 2025 production); secured the Seligi 1b gas sales agreement (13 MMboe net 2P reserves, c.6.0 Kboed from mid-2026); and been awarded the DEWA PSC (c.500 Bscf of gas in place, c.18 Kboed production potential).
- A 34% expansion in the Group’s RBL capacity at year-end redetermination has boosted EnQuest’s transactional liquidity (cash and available facilities) at 28 February 2025 to $549.0 million (31 December 2024: $474.5 million).
- EnQuest is pleased to propose a 2024 final dividend of 0.616 pence per share, equivalent to c.$15 million, payable in June 2025 following shareholder approval at the Group’s Annual General Meeting.
- Net Group production is expected to average between 40,000 and 45,000 Boepd (pro forma basis, including Vietnam volumes).
- Production from the current portfolio, excluding Vietnam, averaged 43,037 Boepd to the end of February 2025.
- Operating expenditure expected to total c.$450 million; capital investment expected to total c.$190 million; Decommissioning expenditure expected to total c.$60 million, all on a pro forma basis.
- Kraken FPSO lease rate reduces by c.70% from 1 April 2025.
- Kraken FPSO lease rate reduces by c.70% from 1 April 2025.
Production and financial information
| Macro conditions | 2024 | 2023 | Change |
|---|---|---|---|
| Brent oil price4 ($/bbl) | 80.5 | 82.5 | -2.4% |
| Natural gas price5 (GBp/Therm) | 83.6 | 98.9 | -15.5% |
| Alternative performance measures (‘APMs’) | 2024 | 2023 | Change |
|---|---|---|---|
| Production (Boepd) | 40,736 | 43,812 | -7.0% |
| Realised oil price ($/bbl)1,2 | 80.2 | 81.4 | -1.5% |
| Average unit operating costs ($/Boe)2 | 25.3 | 21.9 | 15.5% |
| Adjusted EBITDA ($m)2 | 672.6 | 824.7 | -18.4% |
| Cash expenditures ($m) | 313.4 | 211.1 | 48.5% |
| Capital2 | 252.9 | 152.2 | 66.2% |
| Decommissioning | 60.5 | 58.9 | 2.7% |
| Adjusted free cash flow ($m)2 | 53.2 | 300.0 | -82.3% |
| End 2024 | End 2023 | Change | |
|---|---|---|---|
| EnQuest net (debt)/cash ($m)2 | (385.8) | (480.9) | -19.8% |
| Statutory measures | 2024 | 2023 | Change |
|---|---|---|---|
| Reported revenue and other operating income ($m)3 | 1,180.7 | 1,487.4 | -20.6% |
| Cost of sales ($m) | (787.4) | (946.8) | -16.8% |
| Reported gross profit ($m) | 393.3 | 540.7 | -27.3% |
| Reported profit/(loss) after tax ($m) | 93.8 | (30.8) | n/a |
| Reported basic earnings/(loss) per share (cents) | 5.0 | (1.6) | n/a |
| Net cash flow from operating activities ($m) | 508.8 | 754.2 | -32.5% |
| Net increase/(decrease) in cash and cash equivalents ($m) | (27.7) | 12.9 | n/a |
Notes:
1 Including realised losses of $12.9 million (2023: realised losses of $11.3 million) associated with EnQuest’s oil price hedges
2 See reconciliation of alternative performance measures within the ‘Glossary – Non-GAAP Measures’ starting on page 70.
3 Including net realised and unrealised losses of $9.8 million (2023: net realised and unrealised gains of $17.2 million) associated with EnQuest’s oil price hedges
4 Source is Reuters Factset
5 Source is ICIS Heren NBP day-ahead
Ends
For further information please contact:
EnQuest PLC
Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive Officer)
Jonathan Copus (Chief Financial Officer)
Craig Baxter (Head of Investor Relations and Corporate Affairs)
Teneo
Tel: +44 (0)20 7353 4200
Martin Robinson
Martin Pengelley
Harry Cameron
Presentation to Analysts and Investors
A presentation to analysts and investors will be held at 10:00 today – London time. The presentation will be accessible via a webcast by clicking here.
The EnQuest team will be hosting a presentation via Investor Meet Company, primarily focused on the Company’s retail investors on 24 April at 10:00 - London time.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add to meet ENQUEST PLC via:
https://www.investormeetcompany.com/enquest-plc/register-investor
Investors who already follow ENQUEST PLC on the Investor Meet Company platform will automatically be invited.
Notes to editors
This announcement has been determined to contain inside information. The person responsible for the release of this announcement is Kate Christ, Company Secretary.
ENQUEST
EnQuest is providing creative solutions through the energy transition. As an independent energy company with operations in the UK North Sea and Malaysia, the Group's strategic vision is to be the partner of choice for the responsible management of existing energy assets, applying its core capabilities to create value through the transition.
EnQuest PLC trades on the London Stock Exchange.
Please visit our website www.enquest.com for more information on our global operations.
Forward-looking statements: This announcement may contain certain forward-looking statements with respect to EnQuest’s expectations and plans, strategy, management’s objectives, future performance, production, reserves, costs, revenues and other trend information. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in this announcement should be construed as a profit forecast. Past share performance cannot be relied upon as a guide to future performance.