North Sea operator EnQuest has become the latest to report sharp gains on the back of high commodity prices as pre-tax profits more than doubled during the first half of the year.
The London-listed firm also enjoyed a slight increase in production during the six months to the end of June with a daily average of 49,726 barrels of oil equivalent, up from 46,187 a year earlier.
Revenues shot up by 82 per cent to $943.5 million (£813m) against $518.3m previously. Profits before tax came in at $416.2m (£359m), up from $175.4m.
"We have a significant work programme to deliver in the second half of the year but remain on track to deliver our operational targets in our core business,” chief executive Amjad Bseisu said.
"We are also committed to supporting the UK's twin objectives of delivering energy security and decarbonisation. Through our Infrastructure and new energy business, we intend to repurpose and utilise existing assets to progress new energy and decarbonisation opportunities, including carbon capture and storage, electrification, and the production of green hydrogen.”
READ MORE: EnQuest pays down debts as North Sea cash flow surges
On this front, EnQuest said it is advancing studies to adapt its Sullom Voe Terminal in Shetland into a carbon capture and storage (CCS) facility. Initial feasibility screening has shown that the site and accompanying pipeline system could support a project of up to 10 million metric tonnes of CO2 per year.
Following the introduction of the UK’s energy profits windfall tax, EnQuest said it expects to pay in for the duration of the levy. This will end when oil falls to $70 per barrel or at the end of 2025, whichever comes first.
EnQuest expects to make its first payment, covering profits from May 26 to the end of June, in the second half of this year. The initial payment is expected to be $5.6m.
Shares in EnQuest closed 1.7p lower yesterday at 29.45p.
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