EnQuest total revenue for 2015 was $906.6 million compared to $1,009.9 million for 2014.
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The overall decrease in revenue was due to the lower oil price offset partially by the higher production.
The blended average realised price per barrel of oil sold was $50.9 for the year ended 31 December 2015, significantly below the $100.6 per barrel received for 2014, reflecting the steep decline in the oil price in 2015.
Revenue is predominantly derived from crude oil sales and for the year ended 31 December 2015 crude oil sales totalled $634.3 million compared with $970.5 million in 2014.
Within revenue in 2015, there is $261.2 million of realised income relating to oil commodity hedges, call options and swaps. There was an overlift of $23.9 million of revenue in 2015, compared to an overlift of $8.2 million in 2014.
EBITDA for the year ended 31 December 2015 was $464.8 million compared with $581.0 million in 2014. The lower EBITDA is mainly due to the lower oil price in H2 2015, which was partially mitigated through the contribution of $261.2 million from the commodity hedge portfolio.
EnQuest’s average unit production and transportation cost in 2015, decreased by $12.4 per barrel, or by 29.5% compared to 2014. Total operating costs for the year ended 31 December 2015 totalled $390.7 million compared to $399.4 million in 2014.
Production costs of $318.5 million were $28.7 million lower than 2014 reflecting EnQuest’s cost reductions, partly offset by a full year of costs on PM8 and initial production costs on Alma/Galia. Transportation costs decreased from $107.5 million to $69.1 million for the year ended 31 December 2015, primarily driven by lower SVT costs.
Profit after tax and net finance costs was $127.8 million, reflecting a tax credit for the year of $129.3 million more than offset by increased finance costs of $176.4 million. The tax credit for the year, excluding exceptional items, is due primarily to an increase in the Ring Fence Expenditure Supplement on UK activities.
The increased finance costs included $80.2 million of bond and loan interest payable and $70.0 million relating to the time value of amortisation of the closed oil puts.
EnQuest’s funding facilities include c.$900 million of bonds and a committed credit facility of $1.2 billion, plus an accordion of up to a further $500 million.
2015 year end net debt was $1,548.0 million, including cash and cash equivalents of $269.0 million and $902.3 million drawn on the credit facility. Cash and undrawn facilities therefore totalled $496.0 million.
Exceptional items include a non-cash post-tax impairments of $626.2 million, due to lower near term oil price assumptions.
As a result of the continued capital investment, UK corporate tax losses at the end of the year increased to approximately $2,535.8 million. ■