A strong performance in 2012, including a 262 per cent reserves replacement ratio, enabled EnQuest (ENQ) to deliver a substantial uplift in oil reserves. However, this year's production guidance has been restricted by the temporary closure in January of the North Sea's Brent pipeline.
Five production wells were brought on-stream in 2012, which brought production to an average of 22,802 barrels of oil equivalent per day (boepd) - 3.8 per cent down on 2011, but above mid-point guidance. That inevitably hit revenues, although it was partially offset by higher realised oil prices and cash profit was roughly flat year on year at $626m (£412m). A $176m one-off gain on disposing of an interest in the Alma/Galia field was cancelled by an impairment charge on the Heather/Broom field, while the dramatic earnings per share hike was attributable to tax adjustments.
The Brent pipeline problems mean that guidance in 2013 is 22,000-27,000 boepd, which includes the additional production linked to the acquisition of an 8 per cent stake in the North Sea Alba field. EnQuest also boosted its proved and probable (2P) reserve base by 11.5 per cent in 2012 after the partial booking of the Kraken field, which extended its overall reserve life to 15.6 years.
| ENQUEST (ENQ) | ||||
|---|---|---|---|---|
| ORD PRICE: | 139p | MARKET VALUE: | £1.1bn | |
| TOUCH: | 138.6-139p | 12-MONTH HIGH: | 143p | LOW: 104p |
| DIVIDEND YIELD: | nil | PE RATIO: | 5 | |
| NET ASSET VALUE: | 161¢* | NET CASH: | $89.9m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2009 | 234 | 11.0 | 1.90 | nil |
| 2010 | 583 | 56.0 | 4.00 | nil |
| 2011 | 936 | 363 | 7.60 | nil |
| 2012 | 890 | 403 | 46.2 | nil |
| % change | -5 | +11 | +508 | - |
*Includes intangible assets of $205m, or 26¢ a share £1=$1.52 | ||||
