2025 Half Year Results
Unless otherwise stated, all figures are in US Dollars. Comparative figures for the Income statement relate to the period ended 30 June 2024 and the Balance sheet as at 31 December 2024. Alternative performance measures are reconciled within the ‘Glossary – Non-GAAP measures’ at the end of the Financial Statements.
EnQuest Chief Executive, Amjad Bseisu, said:
“Consistent with our top-quartile performance over several years, EnQuest has again delivered exemplary production efficiency - which averaged 89% across the portfolio in the first half of 2025, with production in line with guidance. Production-enhancing scopes of work and major maintenance campaigns were all completed on schedule, and it has been pleasing to see Magnus hitting a five-year production peak in recent months. We continue to demonstrate sector leadership in decommissioning, exemplified by the 15,300-tonne Heather topsides lift in August, which is the heaviest such lift in the North Sea in 2025.
“In South East Asia, EnQuest continues to deliver diversified growth. Building upon the DEWA PSC awards and the expansion of the Seligi gas agreement in late 2024, the Group has since completed the Vietnam acquisition; signed PSC agreements alongside the bp Tangguh partnership in Indonesia; and been awarded a PSC agreement in Brunei Darussalam. EnQuest is well respected in the region and, having been named Malaysia Upstream Operator of the Year for a second successive year, we have a robust platform from which to add further value-adding growth in South East Asia.
“We remain very clear that we are committed to continued investment in our UK business, targeting material, value-enhancing growth. Our near-term pivot to investment outside of the UK underlines, however, how successive UK governments have made the UK North Sea globally uncompetitive through fiscal policy. The UK remains the only country worldwide levying a windfall tax on energy profits, in an environment where even the Office of Budget Responsibility acknowledges that prices are at, or below, historic norms and therefore no windfall exists. Following a well-run consultation on the future of the UK’s oil and gas fiscal system, we believe that the UK Government now has a tool with which to revitalise this sector; materially increasing investment and tax revenues to Treasury, improving the UK’s energy security in a volatile macro environment, and protecting jobs across the country, which are currently being lost at a rate of 1,000 per month. We implore the government to act now to avoid the accelerated decline of this industry and the resulting death of the UK’s energy transition ambitions.
“EnQuest’s growth strategy remains robust, with a focus on delivering a transformative UK acquisition; utilising our differentiated operating capability and significant tax asset to deliver material incremental value. The progress made over the past eight years to strengthen our balance sheet provides us with strategic choices and, following the payment of the Group’s maiden dividend, we will continue to make disciplined, value-adding strategic decisions for the benefit of our shareholders.”
H1 2025 performance
- Net production averaged 43,392 Boepd, including proforma 1H production from Vietnam. Excluding Vietnam, Group production was 38,257 Boepd (2024: 42,771 Boepd); strong uptime across the portfolio and a successful Magnus infill drilling campaign being offset by a third-party infrastructure outage that shut Magnus in for almost five weeks.
- This outage lowered Group H1 production by c.3,500 barrels per day, equivalent to the deferral of one cargo sale out of the period. Strong underlying asset performance, optimised production at Magnus and confidence in the second half outlook mean that full year production guidance remains unchanged at 40 to 45 Kboed.
- Revenue and other operating income fell c.6% (2025: $549.1 million, 2024: $586.0 million); cost of sales rose c.10%; and the Group reported a pre-tax profit of $65.6 million (2024: $111.3 million).
- A 14% fall in Brent was largely offset by the Group’s active portfolio of hedging and a 37% rise in gas prices. Underlying operating costs were held flat, despite an 11% weakening in USD.
- A $123.9 million non-cash adjustment (due to the two-year extension of the EPL ‘windfall tax’) distorts the H1 tax charge. Adjusting for this and other exceptional items, EnQuest reported a net loss of $43.1 million (2024: adjusted net profit $84.2 million); which, inclusive of these items, rises to a statutory net loss of $173.5 million (2024: statutory net profit $30.3 million).
- Free cash flow totalled $32.7 million (2024: $55.5 million) and after payment of a $15 million dividend, Net Debt at 30 June totalled $376.6 million (end 2024: $385.8 million). Cash and undrawn facilities rose to $577.8 million (end 2024: $474.5 million).
- Post the balance sheet date, in July, EnQuest paid $104.1 million in relation to the UK Energy Profits Levy, as well as a $22.2 million completion payment associated with the acquisition of Block 12W in Vietnam.
- EnQuest remains fully focused on delivering its base operations and securing transformational transactional growth within its North Sea business, enhanced by the Group’s advantaged UK tax position.
2025 guidance and outlook
EnQuest remains on track to deliver net production within the guidance range of 40,000 to 45,000 Boepd communicated at the start of the year (inclusive of Vietnam, with full year pro forma production of c.5 Kboed). During the unscheduled Magnus production shut-in, EnQuest proactively accelerated maintenance work, and the next planned maintenance shutdown at the field will be in 2026.
Full year expectations for each of operating, cash capital and abandonment expenditures remain unchanged from the Group’s original guidance at c. $450 million, $190 million and $60 million, respectively, all on a full year pro forma basis, including Vietnam.
In the period to 30 June 2025, EnQuest benefited from its steps in H2 2024 to reposition and expand its programme of hedging. For the period September to December 2025, the Group has c.1.6 MMbbls of production hedged, using swaps at an average price of $71/bbl. For 2026, EnQuest has a further c.4.2 MMbbls of production hedged, utilising swaps at an average price of $69/bbl, with an additional 0.1 MMbbls hedged using collars with a floor price of $53/bbl and ceiling price of $81/bbl.
EnQuest’s business development team remains very active in both the UK North Sea and South East Asia, as the Group pursues transformative growth.
Production and financial information
| Alternative performance measures (‘APMs’) | For the period to 30 June 2025 | For the period to 30 June 2024 | Change % |
|---|---|---|---|
| Production (Boepd)1 | 38,257 | 42,771 | (10.6) |
| Realised oil price ($/bbl)2,3 | 71.0 | 83.4 | (14.9) |
| Operating costs ($m)3 | 182.8 | 183.0 | (0.1) |
| Average unit operating costs ($/Boe)3 | 27.8 | 22.8 | 21.9 |
| Adjusted (loss)/profit attributable to shareholders | (43.1) | 84.2 | – |
| Adjusted EBITDA ($m)3 | 234.6 | 367.5 | (36.2) |
| Cash expenditures($m) | 114.6 | 126.5 | (9.4) |
| Capital | 83.2 | 95.0 | (12.4) |
| Abandonment | 31.4 | 31.5 | (0.3) |
| Adjusted free cash flow($m)3 | 32.7 | 55.5 | (41.0) |
| 30 June 2025 | 31 December 2024 | ||
| EnQuest net debt ($m)3 | (376.6) | (385.8) | (2.4) |
| Statutory IFRS measures | For the period to 30 June 2025 | For the period to 30 June 2024 | Change % |
|---|---|---|---|
| Reported revenue and other operating income ($m)4 | 549.1 | 586.0 | (6.3) |
| Cost of sales ($m) | 388.9 | 352.3 | 10.4 |
| Reported gross profit ($m) | 160.2 | 233.7 | (31.5) |
| Reported (loss)/profit after tax ($m) | (173.5) | 30.3 | – |
| Reported basic (loss)/earnings per share (cents) | (9.3) | 1.6 | – |
| Cash generated from operations ($m) | 215.2 | 368.9 | (41.7) |
| Net increase/(decrease) in cash and cash equivalents ($m)5 | 34.8 | 27.0 | 28.9 |
Notes:
1 Production figure for the first half of 2025 includes 2,748 Boepd associated with Seligi gas (2024: 1,614 Boepd)
2 Including realised gains of $1.0 million (2024: realised losses of $10.7 million) associated with EnQuest’s oil price hedges
3 See reconciliation of alternative performance measures within the ‘Glossary – Non-GAAP measures’ starting on page 31. Note, EnQuest defines net debt as excluding finance lease liabilities
4 Including net realised and unrealised gains of $34.2 million (2024: net realised and unrealised losses of $12.6 million) associated with EnQuest’s oil price hedges
5 Excludes foreign exchange impact of $15.6 million (2024: $(3.3) million)
Ends
EnQuest PLC
Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive Officer)
Jonathan Copus (Chief Financial Officer)
Craig Baxter (Head of Investor Relations and Corporate Affairs)
Teneo
Tel: +44 (0)20 7353 4200
Martin Robinson
Harry Cameron
Presentation to Analysts and Investors
A presentation to analysts and investors will be held at 10.30 today – London time. The presentation will be accessible via a webcast by clicking here.
EnQuest’s investor relations team will be hosting a presentation via Investor Meet Company, primarily focused on the Company’s retail investors on 14 October at 14:00 - London time.
The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am the day before the meeting or at any time during the live presentation.
Investors can sign up to Investor Meet Company for free and add the Company to meet ENQUEST PLC via:
https://www.investormeetcompany.com/enquest-plc/register-investor
Investors who already follow ENQUEST PLC on the Investor Meet Company platform will automatically be invited.
Notes to editors
This announcement has been determined to contain inside information. The person responsible for the release of this announcement is Kate Christ, Company Secretary.
ENQUEST
EnQuest is providing creative solutions through the energy transition. As an independent energy company with operations in the UK North Sea and across South East Asia, the Group's strategic vision is to be the partner of choice for the responsible management of existing energy assets, applying its core capabilities to create value through the transition.
EnQuest PLC trades on the London Stock Exchange.
Please visit our website www.enquest.com for more information on our global operations.
Forward-looking statements: This announcement may contain certain forward-looking statements with respect to EnQuest’s expectations and plans, strategy, management’s objectives, future performance, production, reserves, costs, revenues and other trend information. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions and the current regulatory environment. Nothing in this announcement should be construed as a profit forecast. Past share performance cannot be relied upon as a guide to future performance.