Results for the year ended 31 December 2021

Summary production statistics and key financials

 20212020Change %
Production (Boepd)44,41559,116(24.9)
Revenue and other operating income ($m)1,21,320.3855.154.4
Realised oil price ($/bbl)1,368.641.366.1
Average unit operating costs ($/Boe)320.515.234.9
Adjusted EBITDA ($m)3742.9550.634.9
Cash expenditures ($m)    117.6173.0(32.0)
Free cash flow ($m)2,3396.8210.588.5
Net (debt)/cash ($m)3(1,222.0) (1,279.7)   (4.5)
Statutory measures20212020Change %
Reported revenue and other operating income ($m)2,41,265.8863.946.5
Reported gross profit ($m)358.264.8452.8
Reported profit/(loss) after tax ($m)2377.0(469.9)-
Reported basic earnings/(loss) per share (cents)221.7(29.0)-
Cash generated from operations ($m)2756.9567.233.4
Net increase/(decrease) in cash and cash equivalents2 ($m)67.4(0.2)-

1 Including realised losses of $67.7 million (2020: realised losses of $6.1 million) associated with EnQuest’s oil price hedges
2 Comparative information for 2020 has been restated
See reconciliation of alternative performance measures within the 'Glossary - Non-GAAP measures'. Cash capital expenditure includes $13.2 million associated with the PM8/Seligi riser replacement. Note, EnQuest defines net debt as excluding finance lease liabilities                                                                                        

Including net realised and unrealised losses of $122.2 million (2020: net realised and unrealised gains of $2.7 million) associated with EnQuest's oil price hedges

2021 key performance indicators

In occupational safety, Lost Time Incident ('LTI') performance was good, with many assets recording an LTl-free year. 

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)

Production at Kraken and PM8/Seligi was in line with expectations, but Group performance was impacted by well integrity and topside issues at Magnus, outages due to planned maintenance and a subsea power umbilical failure at the Greater Kittiwake Area, the impact of the detached riser at PM8/Seligi and natural declines across the Upstream portfolio. This was partially offset by the contribution from Golden Eagle. 

Average unit operating costs were primarily impacted by lower production. Absolute operating costs were broadly in line with 2020, with increased maintenance and integrity spend at Magnus, lower lease charter credits at Kraken and higher emissions trading scheme costs offset by lower tariff and transportation costs.

2 See reconciliation of alternative performance measures within the 'Glossary- Non-GAAP measures'

Strong cash generated by operations was driven by higher revenue reflecting higher realised oil prices. 

Cash capital expenditure in 2021 primarily related to licence to operate activities, the Magnus production enhancement campaign and pipeline replacement costs at PM8/Seligi.

Cash abandonment expenditure increased, reflecting decommissioning activities at Heather, Thistle and the Dons.

2 See reconciliation of alternative performance measures within the 'Glossary- Non-GAAP measures'

Strong free cash flow generation was partially offset by consideration paid for the acquisition of Golden Eagle and the early voluntary repayment of the BP vendor loan. The Group has continued voluntarily to make early repayments of its senior secured credit facility.

2 See reconciliation of alternative performance measures within the 'Glossary- Non-GAAP measures'

During the year, the Group produced 8.2% of its year-end 2020 2P reserves base. This reduction was more than offset by the 2P reserves added through the Golden Eagle acquisition. 

With power generation and flaring major sources of emissions, lower production does not always lead to reduced emissions. In 2021, emissions were reduced through operational improvements, such as: compressor remapping at Kittiwake reducing flaring; and the commissioning of a waste heat recovery unit at Kraken reducing diesel usage. 

3 tCO2e: tonnes of co2 equivalent