EnQuest (ENQ) H2 2025 earnings summary

Executive summary

• Achieved 5.4% year-over-year production growth in 2025, exceeding guidance, and expanded in Southeast Asia through acquisitions in Vietnam, Brunei, and Indonesia.

• Maintained high production efficiency at 89% despite third-party outages, and extended asset lives by 10+ years on average.

• Demonstrated leadership in decommissioning, completing 84 wells in the UK and 21 in Malaysia since 2022, and won multiple industry awards for operational and decommissioning excellence.

• Advanced decarbonization, reducing emissions by 45% from 2018 baseline, and launched electrification projects.

• Declared and paid a maiden dividend of $15 million in June 2025, with an increase to $20 million planned for 2026.

Financial highlights

• Revenue for 2025 was $1.1 billion, with 5% production growth offsetting a 15% decline in Brent prices; realized oil price averaged $68.8/bbl.

• Adjusted EBITDA reached $504 million; unit OpEx fell 2% to $25/bbl; operating costs remained flat year-over-year.

• Net profit, excluding a one-off non-cash tax charge, was $126 million; reported net profit was $2 million after tax charge.

• Operating cash flow was $498 million; free cash flow was $9 million.

• Net debt at year-end was $434–$435 million; cash and undrawn facilities totaled $679 million.

Outlook and guidance

• 2026 production guidance: 41,000–45,000 BOE/d, including impact of third-party outages and ongoing drilling.

• Operating expenditure guidance: $450 million, with $30 million FX buffer; CapEx guidance: $160 million, focused on drilling and NCP bypass.

• Decommissioning cost guidance: $60 million; continued focus on cost discipline and FX hedging.

• Dividend of $20 million planned for June 2026, supported by a sustainable capital allocation framework.

• Southeast Asia production expected to double to 35,000 BOE/d by decade's end, with UK production stable.