
At the other end of the lifecycle of our
asset portfolio, EnQuest plugged and
abandoned (‘P&A’) another 22 wells, and
the Group remains on track to complete
well P&A work on both Heather and Thistle
in 2025. Although we have delivered more
than 35% of the total well P&A work in the
North Sea over the last three years, our
exposure to the cost of this work remains
one of the lowest in the basin, as these
costs have mostly been left behind with
the original owners of the assets. We
continue to deliver P&A activities at a per
well cost that is significantly below the
North Sea Transition Authority (‘NSTA’)
industry benchmark, and in recognition
of our decommissioning expertise,
in 2024 Shell transferred to EnQuest
its decommissioning management
role of the Greater Kittiwake Area.
Having produced c.14 MMboe of
hydrocarbons in 2024, we almost
fully replaced these volumes through
2P reserve additions in South East
Asia, with Group 2P reserves totalling
168.6 MMboe at 31 December 2024
(2023: 174.9 MMboe). 2C resources also
remained robust, totalling c.354 MMboe,
Bressay and Bentley each holding more
than 100 MMboe of net resource.
Post the period end, EnQuest
added a further 7.5 MMboe of 2P
and reserves and 4.9 MMboe of 2C
resource through the acquisition of
Harbour’s Vietnam operations.
Financial performance
The Group’s continued solid financial
and operating performance in the
period drove further strengthening of
EnQuest’s balance sheet and enabled
the focus of the business to pivot to
shareholder distributions and growth.
We reduced our EnQuest net debt by
a further $95.1 million, to $385.8 million
(31 December 2023: $480.9 million)
and we were delighted to execute our
first shareholder return programme,
repurchasing $9.0 million of capital via
a share buyback.
Lower commodity prices, production and
the Magnus crossover gas component
reduced Group revenue to $1,180.7 million
(2023: $1,487.4 million). The Magnus
crossover gas also drove a reduction in
cost of sales, with production costs flat
year-on-year. Adjusted EBITDA fell by 18.5%,
to $672.6 million (2023: $824.7 million) but
EnQuest’s effective tax rate fell to 43.7%
(2023: 113.3%) due to the recognition of
additional carried forward tax losses. As a
result, the Group reported a post-tax profit
of $93.8 million (2023: $30.8 million loss).
Chief Executive’s report
continued
“Our top quartile
operating capability
and differentiated tax
position make EnQuest
the right operator to
maximise the value of
mature assets in the
North Sea and beyond.”
Capital expenditure in the period rose to
$252.9 million, primarily relating to the
Magnus five-yearly rig recertification,
Golden Eagle drilling, decarbonisation
projects at SVT, and the emission-reducing
Magnus Flare Gas Recovery project
(2023: $152.2 million). Decommissioning
expenditure totalled $60.5 million
(2023: $58.9 million). In the period, we
also received repayment of a vendor
loan that was provided to RockRose as
part of the 2023 Bressay farm-down.
We used our financial strength to
make $130.6 million of net repayments
on our loans and borrowings (2023:
$237.1 million), repaying our RBL facility
in full ($140.0 million) in Q1 2024 and,
in Q4 2024, repaying the entire $150.0
million term loan facility through a
$160.0 million tap of EnQuest’s high
yield bond, which has simplified
transaction-ready access to our RBL.
Following the RBL redetermination process
at the end of 2024 and with no further
drawdowns in the first quarter of 2025,
$237.1 million of the RBL facility remains
available to EnQuest for future drawdown.
We understand the importance of
distributions to our shareholders and,
having ended 2024 with a strong financial
position, EnQuest is pleased to propose
its maiden dividend, which for 2025 will
be 0.616 pence per share, equivalent to
c.$15 million.
Environmental, Social
and Governance
Against the 2018 baseline established
by the NSTA’s North Sea Transition Deal,
we have reduced our absolute UK Scope
1 and Scope 2 emissions by over 40%,
providing a strong foundation for our
commitment to reach net zero in Scope
1 and Scope 2 emissions by 2040.
Work continues to decarbonise existing
portfolio infrastructure. Examples of these
initiatives include the Magnus Flare Gas
Recovery project, which was sanctioned
in 2024, and development of the Bressay
gas cap, for which we target regulatory
approval later this year. At the Sullom
Voe Terminal (‘SVT’) on Shetland, we are
progressing two significant projects: the
New Stabilisation Facility (‘NSF’) and the
long-term power solution, which together
will reduce SVT’s carbon footprint by c.90%.
Under the management of Veri Energy,
a wholly owned subsidiary of EnQuest,
we are also supporting the UK’s
transition ambitions by progressing
several scalable renewable energy
and decarbonisation projects.
The health, safety and wellbeing of our
employees remains our top priority.
In 2024, our Lost Time Incident (‘LTI’)
performance fell short of our expectations
and was out of line with the Group’s
recent safety record. EnQuest aims
to be in the upper quartile for safety
performance and is working closely with
all contractors to ensure that everyone
working at our sites is aligned with
EnQuest’s commitment to SAFE Results.
2024 saw a number of changes to the
EnQuest Board, with Jonathan Copus,
our Chief Financial Officer, formalising his
Board position and Rosalind Kainyah MBE
and Marianne Daryabegui joining the
Board as Non-Executive Directors. With
Salman Malik, Rani Koya and Liv Monica
Stubholt stepping down as Directors
at the Annual General Meeting (‘AGM’),
I would like to thank them for their diligent
contributions to EnQuest over the years. I
look forward to working with the refreshed
Board as we execute our growth strategy.
2025 performance and outlook
In 2025, our focus is to maximise the
value of our existing assets, while using
our operating expertise and advantaged
UK tax position to grow our business
through acquisition. Success in these
goals is expected to deliver a step-
change in our operations, which will
expand cash flow and enable us to
boost shareholder distributions and
accelerate our growth in South East Asia.
Group production to the end of February
from the current portfolio, excluding
Vietnam, was 43,037 Boepd. At the same
date, following the Group’s year-end RBL
redetermination, cash and available
facilities had risen to $549.0 million.
Our full-year 2025 net production
guidance of between 40,000 and 45,000
Boepd includes pro forma volumes from
our Vietnam acquisition (due to complete
during the second quarter of 2025) and
the expected impact of drilling and
well work at Magnus and PM8/Seligi.
Pro forma operating costs are expected
to be c.$450.0 million, while capital
expenditures are expected to be c.$190.0
million. Decommissioning expenditures
are expected to total c.$60.0 million.
In 2025, we are working to advance
several important projects toward
Final Investment Decisions (‘FID’).
Development of Bressay’s gas cap will
lower Kraken costs and emissions, whilst
de-risking the pathway to development
of significant oil volumes on the Bressay
and Bentley fields (together c.250 MMboe
of the Group’s 2C Resources).
EnQuest operates the Sullom Voe Terminal
on Shetland, which is the focus of the
Group’s decarbonisation and renewable
energy projects.
1
See Glossary – Non-GAAP Measures on Page 189
2
This includes pro forma Vietnam volumes
EnQuest’s Kraken FPSO
EnQuest net debt
1
at
31 December 2024
$ million
385.8
2025 pro forma production
guidance
2
Boepd
40,000
45,000
Following encouraging testing, we also
aim to progress the Kraken Enhanced Oil
Recovery (‘EOR’) project to a FID within the
next 12 months. Initial estimates suggest
that this has potential to unlock 30 to 60
MMbbls gross of additional recoverable oil.
Our position as a top quartile operator,
alongside our advantaged UK tax
position, enhances our M&A credentials
as a responsible owner and operator
of existing assets and infrastructure
as we transition to a lower-carbon
energy system, offering our people
long-term opportunities. We also
believe that our core capabilities and
top quartile operating performance
can be replicated and deployed across
other geographies as we continue to
grow and diversify internationally.
Reflecting on 2024, I am proud of the
resilience, adaptability, and commitment
that have defined our performance.
Despite a dynamic and volatile global
energy landscape, EnQuest has delivered
diversified growth, demonstrated
operational excellence, and returned
capital to our shareholders. Our
employees remain the cornerstone
of our success and, together, we
recognise the responsibility we share
in shaping the future of energy.
As we look to execute a transformative
transaction in the UK, and further
diversification of our portfolio, we will
continue to be guided by a commitment
to generating value for our shareholders.
Amjad Bseisu
Chief Executive
EnQuest PLC Annual Report and Accounts 2024
Strategic Report
Corporate Governance
Financial Statements
14—15