EnQuest's (ENQ) shares slipped a couple of percentage points on the back of these fairly mixed half-year figures. Disappointingly, the North Sea operator has pushed back first oil production from the Alma/Galia redevelopment project to the first quarter of 2014 instead of later this year, citing extra refurbishment work needed on existing infrastructure.
This means 2013's average oil production is likely to come in at the lower end of guidance, between 22,000 and 27,000 barrels of oil-equivalent per day (boepd). First-half production averaged 21,455 boepd, slightly up on the comparable period last year. However, gross profit fell 14 per cent to $175m (£114m), reflecting a lower oil price, a change in the production mix and a number of one-off operating costs.
Still, EnQuest remains on course to increase production by around 60 per cent next year, or by 13,000 boepd, when Alma/Galia comes on stream. "We'll have four of the wells ready rather than two, so I think the production will start off at a higher rate", said Enquest's chief executive, Amjad Bseisu, in a Reuters interview. EnQuest also announced that it has submitted a field development plan for the Kraken oilfield and expects to receive approval for it later this year.
Broker Westhouse Securities forecasts EPS of 25¢ in the current year, rising to 47¢ in 2014 (from 46¢ in 2012).
ENQUEST (ENQ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 124p | MARKET VALUE: | £995m | |
| TOUCH: | 123-124p | 12-MONTH HIGH: | 146p | LOW: 109p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 4 | |
| NET ASSET VALUE: | 173¢* | NET DEBT: | 7% | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 440 | 185 | 16.1 | nil |
| 2013 | 456 | 141 | 12.2 | nil |
| % change | +4 | -24 | -24 | - |
Includes intangible assets of $218m, or 27¢ a share £1=$1.53 | ||||
