EnQuest Reports Turnaround Profit Amid Rising Oil Prices

Oil and gas producer EnQuest reported a profit of $30.3 million for the first half of 2024, recovering from last year's loss. The recovery attributed to higher oil prices while criticizes the UK's incremental Energy Profits Levy.

Oil and gas producer EnQuest on Thursday reported a profit for the first six months of 2024, helped by higher oil prices, recovering from a year-ago loss when the UK's windfall tax for energy companies wiped out most of its earnings.

The company posted a profit after taxation of $30.3 million for the six months ended June 30, compared with a loss of $21.2 million last year. It reported realised oil prices of $83.40 per barrel for the period, compared to $75.80 last year.

Following a spike in energy prices in 2022, Britain imposed an energy profit levy on oil and gas producers, raising the tax rate to 75%, which wiped out most of their profits. The company said it was disappointed by the implementation of the ongoing EPL, after the Labour government last month announced a further 3 percentage point hike to the levy, bringing the headline rate to 78%, effective from Nov. 1.

"We are disappointed with the ongoing application of the Energy Profits Levy despite operating in an environment where no windfall conditions exist," said EnQuest CEO Amjad Bseisu in a statement. "The UK energy industry needs a progressive tax regime that recognizes the maturity of the North Sea and re-establishes the UK as a globally competitive investment basin," Bseisu added.

The London-listed company's gross profit for the first half of 2024 stood at $233.7 million, compared with last year's $287.1 million.

(With inputs from agencies.)