EnQuest has announced results for the year ended 31 December 2024 and 2025 outlook. The Company delivered another outstanding year of operational performance in 2024, with production efficiency at 90% across the asset portfolio.
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.
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Source: EnQuest
