Latest news with #NorthSea-focused
The Herald Scotland
27-05-2025
- Business
- The Herald Scotland
EnQuest slams windfall tax as Aberdeen oil and gas jobs lost
In an operations update, the company told stock market investors: 'We remain focused on delivering a material UK transaction in the short term,' adding that it is in 'ongoing discussions with multiple UK counter-parties'. The company released the update weeks after abandoning a bid to acquire North Sea-focused Serica Energy, which has a stock market capitalisation of £565m. EnQuest has seen its valuation fall to £212m following a drop of around a third in the price of the company's shares since March amid the volatility triggered by Donald Trump's tariff threats. READ MORE: Israeli-owned firm takes control of UK's biggest gas field Against that backdrop, the company said the windfall Energy Profits Levy was an increasingly unfair burden on firms which could have disastrous unintended consequences. "The recent stepdown in commodity prices has further amplified calls for the UK government to remove the Energy Profits Levy and return the North Sea to a position of global competitiveness,' said chief executive Amjad Bseisu in the update. 'The status quo, which sees the UK as the only country levying a windfall tax on homegrown energy producers, where no windfall profits exist, is resulting in irreversible damage to this strategic national industry and is driving job losses across the sector.' Earlier this month one of the biggest North Sea producers, Harbour Energy, announced plans to shed 250 jobs citing the continued challenging domestic fiscal and regulatory environment. In the update, EnQuest said it had launched a drive to cut costs to boost efficiency 'commensurate with a low commodity price environment'. The company did not elaborate on the implications for jobs in the North Sea operations it runs from Aberdeen. It has been approached for comment. READ MORE: SNP Government oil hypocrisy shocking amid Scottish jobs cull All the same, the update made clear that EnQuest still sees plenty of potential in the UK North Sea. 'We are resolute in our belief that our relative advantages, both operational and fiscal, see us ideally placed as a North Sea consolidator," said Mr Bseisu in the update. EnQuest became a significant force in the area after investing in assets it acquired amid tough times in the industry from firms that appeared to have lost interest in them, such as BP. EnQuest started production from the Kraken field off Shetland in 2017 (Image: EnQuest) The company's directors appear confident that the strategy makes sense amid the current downturn. This may create opportunities to acquire assets on attractive terms. Mr Bseisu's comment highlights the fact that EnQuest has accumulated historic losses that it can use to reduce the tax bills it will have to pay on the profits generated by its North Sea production operations. EnQuest incurred the losses amid moves to increase production from the assets it acquired. This has involved it drilling additional wells to help boost the recovery of reserves from existing fields and developing new ones such as Kraken. The company has continued with the strategy since the windfall tax was first introduced by the former Conservative Government in 2022. Mr Bseisu noted that EnQuest recently increased output from the Magnus field north east of Shetland to the highest level since 2022. The success reflected 'strong reservoir management and good infill drilling results'. EnQuest expects to start production from a further infill well on Magnus next month. The company acquired Magnus and related assets from BP in deals worth $385m in total in 2018, amid the slump in the area that started after oil prices plunged in 2016 as growth in supplies ran ahead of demand. READ MORE: North Sea drilling curb plans look mad amid Trump trade threats EnQuest acquired control of the undeveloped Bressay oil field east of Shetland from Equinor in July 2020 for an initial £2m, following the plunge in oil prices caused by the pandemic. In January EnQuest acquired Harbour Energy's Vietnam business in an $84m (£62m) deal. It has long had a presence in Malaysia. The company said it sees 'significant upside across its existing Asia portfolio, and is in advanced discussions around a further new country entry'. EnQuest made $94m profit after tax in 2024 on sales of $1.2bn. When EnQuest and Serica ended takeover talks early this month the companies said that market volatility had made it impossible to agree the terms concerned. READ MORE: North Sea oil giant plans $500m investor payouts as it cuts jobs Serica announced in March that it was in talks with EnQuest regarding a deal that would have created a company with increased scale, unlocked significant synergies and created a stronger platform for further growth. It was expected then that EnQuest would make an all-share offer for Serica.
Reuters
02-05-2025
- Business
- Reuters
EnQuest bows out of Serica deal as market jitters hinder agreement on terms
May 2 (Reuters) - North Sea-focused oil producer EnQuest (ENQ.L), opens new tab will not make an offer for UK's Serica Energy (SQZ.L), opens new tab, the companies said on Friday, as the two could not agree on favourable terms in time amid market volatility. EnQuest shares were down about 5% at 13.14 pence, while Serica shares were up 0.3% at 127 pence at 1623 GMT. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. Serica said in March it was in talks with EnQuest about a possible deal. The termination occurs amid a broader wave of economic uncertainty fueled by sweeping global tariffs imposed by U.S. President Donald Trump. The energy sector has been particularly rattled in early 2025, as recessionary concerns have weighed heavily on oil demand expectations, dragging prices lower as investors brace for a slowdown in global consumption. Simultaneously, the OPEC+ alliance has been ramping up oil output, adding to global supply and compounding the downward pressure on prices. The ripple effects of the trade tensions extend beyond energy. U.S. crop commodities trader Bunge Global 's (BG.N), opens new tab planned $34 billion merger with Glencore-backed (GLEN.L), opens new tab Viterra is being stalled due to escalating U.S.-China trade friction, Bloomberg News reported on Friday, citing people familiar with the matter. The trade tensions have also significantly narrowed the window for initial public offerings. Among the companies that have recently put their IPO plans on hold are Swedish fintech firm Klarna (KLAR.N), opens new tab, San Francisco-based Chime, and ticketing platform StubHub. EnQuest's decision came hours ahead of a "put up or shut up" deadline on Friday for the proposal, which would have given Serica shareholders a majority stake in the combined company and returned capital to investors. Serica said it was confident in its "standalone ability to generate significant cash flow and deliver shareholder value and highly competitive shareholder returns."
Reuters
27-03-2025
- Business
- Reuters
Britain's EnQuest swings to profit in 2024
March 27 (Reuters) - Britain's EnQuest (ENQ.L), opens new tab swung to annual profit on an after-tax basis, the North Sea-focused oil producer said on Thursday, benefiting from strong production and higher oil prices.
Reuters
20-02-2025
- Business
- Reuters
UK's Ithaca Energy's shares jump 8% on higher 2024 production
Feb 20 (Reuters) - Shares of Ithaca Energy (ITH.L), opens new tab jumped nearly 8% in morning trade after the North Sea-focused company reported higher 2024 oil and gas production, driven by the recently acquired UK assets of Eni ( opens new tab. Ithaca bought nearly all of Eni's UK oil and gas producing assets last year in an all-stock deal worth around 754 million pounds ($950.87 million), as it aims to become one of the biggest independent North Sea energy companies. By 0911 GMT, Ithaca's London-listed shares were up 7.9% at 141.60p. "Our 2024 performance exceeded expectations and the combination of the business with Eni's UK assets is demonstrating its value. The integration is progressing well, with both operational and systems aspects well on track," Ithaca CEO Luciano Vasques said. In a trading update ahead of full-year results on March 26, Ithaca reported 2024 production of 80.2 thousand barrels of oil equivalent per day (boepd), 14.2% higher than in the previous year. "We continue to see material opportunity in our home basin, with an eye on international expansion, providing a range of strategic options for growth," executive chairman Yaniv Friedman said. ($1 = 0.7930 pounds)
Reuters
12-02-2025
- Business
- Reuters
UK energy firm EnQuest forecasts higher production in 2025
Feb 12 (Reuters) - British energy group EnQuest (ENQ.L), opens new tab forecast higher annual production on Wednesday, helped by its recently announced deal to buy Vietnamese assets from London-listed Harbour Energy (HBR.L), opens new tab. The group's net production from its existing portfolio averaged 44,200 barrels of oil equivalent per day in January, and it expects pro forma 2025 production to be between 40,000 and 45,000 boped. The firm's production in 2024 averaged 40,736 boped, it said. Advertisement · Scroll to continue Last month, EnQuest said it would acquire Harbour Energy's business in Vietnam as the North Sea-focused company aims to expand outside its home market. "EnQuest is successfully delivering its strategy to grow its international footprint, with successive transactions in South East Asia providing geographic and commodity diversification within the portfolio," EnQuest CEO Amjad Bseisu said on Wednesday. The company will announce its final audited results in March.
