EnQuest reports revenue drop amid UK windfall tax impact

Published 24/09/2025, 09:30
© REUTERS

Investing.com - EnQuest PLC on Wednesday reported a 6% decline in revenue to $549.1 million for the first half of 2025, compared to $586.0 million in the same period last year, as the UK-based energy company faced challenges from a third-party infrastructure outage and continued pressure from the UK’s Energy Profits Levy.

The company posted a statutory net loss of $173.5 million for the first half, compared to a profit of $30.3 million in the same period last year.

Excluding exceptional items, including a $123.9 million non-cash adjustment related to the two-year extension of the UK’s "windfall tax," EnQuest reported an adjusted net loss of $43.1 million, compared to an adjusted profit of $84.2 million in the first half of 2024.

EnQuest’s stock edged down 0.8% following the earnings release.

Net production averaged 43,392 barrels of oil equivalent per day (Boepd), including proforma production from recently acquired assets in Vietnam.

Excluding Vietnam, production was 38,257 Boepd, down from 42,771 Boepd in the first half of 2024. The company maintained its full-year production guidance of 40,000 to 45,000 Boepd.

"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," said Amjad Bseisu, EnQuest’s Chief Executive.

The company’s pre-tax profit fell to $65.6 million from $111.3 million a year earlier, impacted by a 14% drop in Brent crude prices, though this was partially offset by the company’s hedging program and a 37% rise in gas prices.

EnQuest reported free cash flow of $32.7 million, down from $55.5 million in the first half of 2024, and paid its maiden dividend of $15 million during the period. Net debt stood at $376.6 million as of June 30, slightly lower than the $385.8 million reported at the end of 2024.

The company highlighted its expansion in South East Asia, with completed acquisitions in Vietnam and new production sharing contracts in Indonesia and Brunei, as it seeks to grow its production in the region from 8,149 Boepd in 2024 to more than 35,000 Boepd by the end of the decade.

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