North Sea-focused oil producer stuck to its full-year production forecast on Wednesday encouraged by its operational strength, despite reporting a first-half post-tax loss due to lower output and higher taxes.
The company, like its peers, is grappling with Britain’s extended windfall tax on oil and gas producers, which raised the headline tax rate to 78%, one of the highest globally, inviting criticism from several industry players.
“We remain very clear that we are committed to continued investment in our UK business,” EnQuest CEO Amjad Bseisu said in a statement.
“Our near-term pivot to investment outside of the UK underlines, however, how successive UK governments have made the UK North Sea globally uncompetitive through fiscal policy.”
The company is investing in gas exploration and production in Southeast Asia, alongside major energy firms, to meet the growing power demand.
EnQuest posted a loss after tax of $173.5 million, for the six months ended June 30, compared with a $30.3 million profit last year, after booking a $123.9 million non-cash adjustment related to the higher levies.
Still, analysts at Peel Hunt and J.P.Morgan were upbeat about the company’s first-half performance and highlighted its robust and strong operations.
First-half production stood at 38,257 barrels of oil equivalent per day (boepd), excluding Vietnam, lower than last year’s 42,771 boepd, following a third-party driven outage at EnQuest’s Magnus oil field for nearly five weeks.
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