EnQuest’s stock value fell by 11% after the North Sea oil operator reported a loss for the first half of the year, impacted by the windfall tax on energy earnings.
In the first six months up to June, the company posted a post-tax loss of $21.2m, in contrast to a profit of $203.5m during the same time frame the previous year.
Prior to the windfall tax, formally known as the Energy Profits Levy (EPL), they reported a pre-tax profit of $112.9m (£89.7m), a decline of 38% from $182.6m in 2022.
EnQuest CEO, Amjad Bseisu, commented:
The UK oil and gas sector is currently facing substantial hurdles, with growing concerns over the recent fiscal changes affecting its competitiveness.
We acknowledge the government’s efforts to enhance the appeal of this industry with the Energy Security Investment Mechanism. However, prompt legislative adjustments are essential to re-establish trust in the UK’s oil and gas industry, ensuring job preservation and promoting both energy stability and decarbonization.
Amid the challenges brought on by the EPL, our priority remains to bolster our financial standing. We aim to capitalize on both organic and inorganic growth avenues, leveraging our unique tax benefits, to expand our operations and provide returns for our investors.
