Enquest on course to meet full-year targets

The oil and gas production company said it expected full-year production to come in around the mid-point of its forecast range, of between 44,000 and 51,000 barrels of oil equivalent per day (boepd).

Chief executive Amjad Bseisu added: "Building on our excellent operational performance and deleveraging during the first half of the year, we are on track to deliver on our 2022 targets.

"We continue to progress towards our net debt to earnings before interest, tax, depreciation and amortisation of 0.5x, which will enable us to consider our broader capital allocation priorities, including potential returns to shareholders in the longer term."

Average net group production in the 10 months to 31 October was 46,593 boepd, up 5.2% on the same period a year previously.

Inflationary pressures, meanwhile, were offset by "disciplined" cost management and the weaker pound. Around 80% of EnQuest’s cost base is in sterling. Although it also operates in Malaysia, the vast majority of EnQuest’s assets are in the North Sea.

As at 30 September, net debt was $750m, down from $880m at 30 June.

Shares in EnQuest were down 2% as at 0915 GMT, at 23.95p.