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Performance highlights

Results for the period ended 30 June 2023

Summary production statistics and key financials

Business performance measures
H1 2023H1 2022Change %
Production (Boepd)145,48049,726(8.5)
Revenue and other operating income ($m)2732.7943.5(22.3)
Realised oil price ($/bbl)2,375.889.9(15.7)
Operating costs ($/m)162.7208.4(21.9)
Average unit operating costs ($/Boe)319.722.7(13.2)
Adjusted EBITDA ($m)3399.2536.3(25.6)
Cash expenditures ($m)    
Free cash flow ($m)3140.0332.1(57.8)
 30 June 2023 31 December 2022 
EnQuest net debt ($m)3(592.1)(717.1) (17.4)
Statutory measures
H1 2023H1 2022Change %
Reported revenue and other operating income ($m)4770.4838.8(8.2)
Reported gross profit ($m)287.1252.813.6
Reported profit/(loss) after tax ($m)(21.2)203.5-
Reported basic earnings/(loss) per share (cents)(1.2)(11.1)-
Cash generated from operations ($m)370.4522.7(29.1)
Net increase/(decrease) in cash and cash equivalents ($m)5(18.1)99.5-

1 Production figure for first half of 2023 includes 660 Boepd associated with Seligi gas
2 Including realised losses of $22.2 million (2022: realised losses of $162.3 million) associated with EnQuest's oil price hedges
See reconciliation of alternative performance measures within the ‘Glossary – Non-GAAP measures’ starting on page 32. Note, EnQuest defined net debt as excluding finance lease liabilities
4 Including net realised and unrealised gain of $15.4 million (2022: net realised and unrealised losses of $267.0 million) associated with EnQuest’s oil price hedges

5 Excludes foreign exchange impact of $(0.3) million (2022: $(16.4) million


2022 key performance indicators

In occupational safety, the Group’s excellent track record with respect to Lost Time Incident ('LTI') performance was challenged but remained in the upper quartile. The increase in 2022 primarily occurred throughroutine activities and the Group has taken steps to re-emphasise the need for increased focus on situational awareness and dynamic risk assessment.

The increase in productionwas primarily driven by the full-year contribution from Golden Eagle and improved performances at Magnus and PM8/Seligi, reflecting successful well programmes, while production at Kraken was at the top end of its guidance range.

Average unit operating costs were primarily impacted by the Golden Eagle aquisition and higher fuel and emission trading allowance costs due to higher market prices, partially offset by increased production and the weakening of Sterling against the US Dollar.

Strong cash generated by operations reflected higher adjusted EBITDA, driven by the combination of increased production, supportive commodity prices and effective cost control.

Increased cash capital and abandonment expense reflected significant production enhancing well programmes at Magnus, PM8/Seligi and Golden Eagle, in addition to well plug and abandonment decomissioning activities at Heather/Broom, and Thistle/Deveron.

Strong free cash flow generation was utilised to deleverage the Group’s balance sheet. During 2022, the Group refinanced its debt, rebalancing its capital structure between secured and unsecured debt and extending maturities until 2027.

During the year, the Group produced c.17 MMboe of its year-end 2021 2P reserves base. Other revisions and transfers from 2C resources added a net c.2 MMboe to 2P reserves.

Total CO2e emissions were lower, reflecting lower emissions in Malaysia primarily as a result of sustained periods of single compressor operations.

1 Lost Time Incident frequency represents the number of incidents per million exposure hours worked (based on 12 hours for offshore and eight hours for onshore)
2 EnQuest has updated its reporting of proven and probable reserves to be on an equity working interest basis for alignment and consistency with its peer group, having previously reported on an entitlement basis. Previously, 2021 was reported as 194 MMboe with 2020 reported as 189 MMboe
3 Prior periods have been restated to reflect alignment of reporting methodologies for independent verification of 2022 data in Malaysia. Previously, 2021 was reported as 1,145.3 ktCO2e and 2020 as 1,342.8 ktCO2e