Oil producer Enquest saw revenue fall drastically in 2023 but announced a share buyback in a year of trading hampered by lower oil and gas prices and the continuation of the windfall tax on North Sea oil.
Revenue was down 20.7 per cent from $1.84bn (£1.46bn) the previous year to $1.46bn (£1.16bn), while gross profit was down 17.2 per cent to $540.7m (£428.9m).
After tax, the company operated at a loss of $30.8m (£24.4m), lower than the $41.2m (£32.7m) it posted in 2022.
The firm attributed its struggles to the “challenging” fiscal environment in the UK, arguing it had the fundamentals for a return to growth in 2024. Between 2022 and 2023, crude oil and natural gas prices fell by 18 and 51 per cent, respectively,
Its boss also pointed to the inroads it had made to cut debt as a reason for investors to be optimistic, despite the fact that the firm’s share price has languished since the introduction of the windfall tax on North Sea oil.
The firm, which has long operated under a high debt burden, managed to reduce its net debt by $236m (£187.2m) over the course of last year and now owes $481m (£318m).
The debt reduction programme was in part caused by the introduction of the windfall tax on North Sea oil producer, which forced it into a steeper repayment plan.
The 75 per cent levy—introduced by the government after Russia’s invasion of Ukraine sent oil and gas prices rocketing—reduced the cap on Enquest’s borrowing capacity.
The company has previously criticised the tax.
Amjad Bseisu, EnQuest’s Chief Executive, said: “EnQuest achieved its 2023 targets, delivering strong operational performance across the operated portfolio and continuing to de-lever its balance sheet.
“We have set the foundations for a pivot to growth during 2024 and continue to perform well against our full year targets.”
Alongside the results, the company announced a share buyback throughout this year of $15m.
EnQuest also reported progress in its transition and decarbonisation efforts, which focus on carbon capture and green hydrogen. Last year, the firm launched its specialist decarbonisation subsidiary Veri Energy, and was named among the 12 firms to take part in the UK’s first ever North Sea carbon capture licencing round.