Enquest expects to return to growth despite ‘political uncertainty’

North Sea oil operator Enquest has said today that it would return to growth in 2024 despite ongoing political uncertainty in the UK.

The energy firm said ahead of its annual general meeting that the “foundations were set for a pivot to growth” this year through acquisitions and efficiencies.

The group, which is run by the Conservative Party donor Amjad Bseisu, confirmed its production was within its guidance for the year to date and that it had slashed its debt by $137m (£107m) in the same period.

Guidance for its full year results remained unchanged, the energy company said, despite “political uncertainty” hampering its operations.

Bseisu commented: “EnQuest has continued to deliver strong operational performance across our operated portfolio during the early part of the year.

“We continue to achieve top quartile production efficiencies across the portfolio, while our high performing decommissioning team continues to deliver sector leading performance, having completed ten well plug and abandonments in 2024 across Heather and Thistle.”

The update comes just a month after Enquest, which has a market capitalisation of £290m, embarked on a $15m (£11.8m) share buyback programme.

The programme was announced in late March alongside an earnings update in which the company announced a loss after tax of $30.8m (£23m). The loss was an improvement on its 2022 performance in which it suffered losses of $41.2m (£32.3m).

The smaller energy firms operating in the North Sea have been particularly badly affected by the levy placed on their profits in response to the windfall many firms got Russia’s invasion of Ukraine.

Enquest has been a particularly outspoken critic of the tax, which the Labour Party has said it would tighten were it to win the upcoming general election.

Bseisu added: “During this period of political and fiscal uncertainty, we remain actively engaged in efforts to advocate on behalf of the sector and the 200,000 jobs which it supports to create an environment which supports investment in the UK’s delivery of energy security, decarbonisation and a just energy transition.”