EnQuest PLC on Thursday announced lower interim profit as revenue fell amid lower oil production.

The oil and gas company with operations in the UK and Malaysia said pretax profit fell 7.4% to $208.6 million in the first half of 2024 from $225.2 million a year prior.

Revenue dived 20% to $587.9 million from $732.7 million.

Production declined 6.0% to 42,771 barrels of oil equivalent per day from 45,480. For all of 2024, the company expects to produce in the guidance range of 41,000 to 45,000 boepd that it set at the start of the year.

The realised oil price rose by 10% to $83.4 per barrel in the first half of 2024, from $75.8 a year ago.

Chief Executive Officer Amjad Bseisu said: ‘We are disappointed with the ongoing application of the [UK] energy profits levy despite operating in an environment where no windfall conditions exist. The current fiscal regime is causing irreversible damage to an indigenous and strategically important UK industry. The UK energy industry needs a progressive tax regime that recognises the maturity of the North Sea and re-establishes the UK as a globally competitive investment basin.’

Looking ahead, Enquest cautioned that full-year production is expected in the lower half of the guided range of 41,000 to 45,000 boepd, noting that ‘remedial works meant Magnus drilling and well interventions recommenced later than planned.’

Enquest shares were down 1.3% to 12.14 pence each midday Thursday in London.

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