Profit up at EnQuest despite oil production dipping

Oil producer EnQuest this morning posted a rise in full-year profits despite revenues and production falling.

EnQuest – which was spun-out from energy services giant Petrofac in 2010 – grew its pre-tax profits by 3.8 per cent to $405.1 million (£267.3m) in 2012 thanks to “strong” cost control.

The rise in profits came despite turnover dipping by 5 per cent to $889.5m following a 3.8 per cent fall in production to the equivalent of 22,800 barrels of oil per day (BOEPD).

EnQuest chief executive Amjad Bseisu said: “In 2012, our successful drilling programme and strong operational performance produced 22,802 BOEPD, above the mid-point of our guidance.

“This was driven by five production wells being brought on-stream and by strong operations execution at Thistle and the Dons.”

He added: “The execution of our major new development projects is on track; Alma-Galia is set to produce first oil in the fourth quarter of this year and we are planning to submit our field development plan for the new Kraken development in the second quarter of 2013.

“With the Kraken and Alba acquisitions and through the 27th UK licensing round, we have further expanded our asset base.

“In 2012, EnQuest doubled the number of UK continental shelf blocks in which it has an interest and established a presence in oil basins outside the UK North Sea.”