EnQuest pumps up profits

Enquest, the North Sea-focused oil and gas group, saw profits soar in the first half of the year thanks to higher oil prices and increased production.

The company was also able to shrug off the impact of the UK government's tax hike on oil producers as it said it would be able to offset the increased charge against its ongoing investment in developing oil fields.

Pre-tax profits before finance costs increased by 145 per cent to $215.2 million (132m) in the six months to 30 June compared with $87.8m in the same period last year.

EnQuest said it had net cash of $265.7m and would continue to consider acquisition opportunities in addition to the organic growth potential offered by its Alma and Crawford projects.

While the firm is considering expanding into other exploration areas, chief executive Amjad Bseisu said the North Sea would remain its main focus.

EnQuest's oil output averaged 25,210 barrels of oil equivalent per day (boepd) in the period, 35 per cent higher than last year.

Brokerage JP Morgan Cazenove described the results as "decent". "EnQuest is efficiently progressing several developments which ought to enable it to meet its 10 per cent production growth per annum," JP said in a note. The shares closed up 6.7p or 6.2 per cent at 114.7p.