EnQuest shares fall on production disappointment

EnQuest shares fell after the oil and gas company cut its production guidance and said spending would be higher than expected.

Announcing interim results, the group said production was likely to be at the lower end of its guidance range of 46-52,000 barrels of oil per day, reflecting expected activity at its Magnus site and others. Operating costs will be about $300m, up from an estimate of $265m in June caused by lower lease charter credits, higher diesel costs, the strong pound and other factors.

Earnings before interest, tax, depreciation and amortisation rose to $345.4m in the six months to the end of June from $320.8m a year earlier as revenue and other operating income increased to $518.3m from $450m. EnQuest said the figures reflected materially higher oil prices partly offset by lower production.

EnQuest's chief executive, Amjad Bseisu, said: "Production at Magnus has been impacted by topside related well performance but our production enhancement programme has partially recovered the well potential and we expect further recovery over the remainder of the year. We remain focused on improving production across our existing portfolio."

Enquest shares fell 8.9% to 23p at 13:20 BST. The shares have almost doubled in 2021.