(Alliance News) - EnQuest PLC shares climbed on Thursday as it declared a dividend for 2024 as net debt fell, but reported lower revenue and profit for 2024.
The London-based oil and gas company with operations in the UK and Malaysia said pretax profit fell 27% to USD166.6 million in 2024 from USD231.8 million in 2023.
Revenue and other operating income was down 21% to USD1.18 billion from USD1.49 billion.
Enquest proposed a final dividend of 0.616 pence per share for 2024, compared to none declared in 2023.
Enquest shares climbed 10% to 14.68 pence in London on Thursday morning.
"Having continued to reduce EnQuest net debt and optimise the debt structure, EnQuest is now positioned to balance deploying capital for growth and returns to shareholders," the company said.
Net debt fell 20% to USD385.8 million at the end of 2024 from USD480.9 million.
The company reported average production of 40,736 barrels of oil equivalent per day, down 6.0% from 43,813 boepd in 2023.
Looking ahead, EnQuest said 2025 is a "pivotal year" and it is focused on "delivering a transformational UK deal and accelerating its growth in South East Asia".
EnQuest has recently acquired Harbour Energy PLC's Vietnam business, where it expects around 5,300 boepd of pro forma production in 2025.
The company expects net group production between 40,000 and 45,000 boepd on a pro forma basis, including Vietnam volumes in 2025. Production from the current portfolio, excluding Vietnam, averaged 43,037 boepd in the twelve months to the end of February 2025.
Chief Executive Amjad Bseisu said: "The group delivered another outstanding year of operational performance in 2024, with production efficiency at 90% across the asset portfolio, representing a continuation of the excellence that defines our status as a top-quartile operator and expert in late-life asset management.
"Our entry into Vietnam, through the Block 12W acquisition, and our increased presence in Malaysia, with the enhancement of our Seligi gas agreement and the DEWA gas development PSC award, are all underpinned by leveraging our differentiated operating capability to create asset value. As EnQuest continues to pursue growth in the UK North Sea and further potential new country entries in South East Asia, these transactions underscore our commitment to growth, a disciplined approach to M&A, and a strategy to invest capital where we identify the most favourable returns."
By Michael Hennessey, Alliance News reporter
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