EnQuest's annual revenues fall on production drop

Oil and gas company EnQuest saw revenues fall in 2012 as production dropped.

Revenue fell by 5.0% to $889.5m from $936m in 2011 as output declined by 3.8% to 22,802 barrels of oil equivalent per day (boepd) from 23,698.

EnQuest generated $593.9m in cash flow from operations, 9.5% down from the previous year's $656.3m.

Nevertheless, profit before tax grew 3.8% to $405.1m from $390m due to cost control and strong operational performance. The company achieved a decrease in the cost of sales and operating expenses.

"In 2012, our successful drilling programme and strong operational performance produced 22,802 Boepd, above the mid-point of our guidance," said Chief Executive Officer, Amjad Bseisu.

"This was driven by five production wells being brought onstream and by strong operations execution at Thistle and the Dons."

Average production guidance for the full year 2013 is between 22,000 boepd and 27,000 boepd, as about 1,000 Boepd has been lost due to a third party closure of the North Sea's Brent pipeline in January.

The Brent pipeline was shut down for eight days because of a leak at an offshore platform.

It affected production at Dunlin, Thistle, Northern Producer, Murchison, North Alwyn, Tern, Eider and North Cormorant platforms.

Enquest plans to deliver 12 wells this year of which include six production wells, three injection wells and three exploration wells.

RD