EnQuest shares fall as adjusted earnings grow but statutory falls

EnQuest PLC on Thursday announced higher interim adjusted earnings amid more oil production and a higher oil price, while statutory profit was lower amid a disruption in the UK North Sea.

The oil and gas producer in the UK and Malaysia said pretax profit from operations fell 40% to USD83.8 million in the first half of 2026 from USD138.7 million a year prior.

Adjusted earnings before interest, tax, depreciation and amortisation improved by 13% to USD273.0 million from USD241.6 million.

Revenue fell 3.5% to USD529.9 million from USD549.1 million. The company noted third-party infrastructure disruption in the UK North Sea, which lowered first-half Magnus production by around 4,100 barrels of oil equivalent per day.

The disruption meant that one Magnus cargo was deferred beyond June 30, with a cash flow impact of around USD60 million.

Production rose 8.6% to 41,544 boepd from 38,257 boepd, while the realised oil price jumped 19% to USD84.5 per barrel from USD71.0.

EnQuest reported an unrealised commodity hedge loss of USD79.0 million, compared to a gain of USD33.2 million.

It noted an impairment reversal of USD29.6 million, compared to just USD500,000.

Further, it had a gain of USD4.4 million from the change in fair value of Magnus contingent consideration, compared to a cost of USD14.9 million.

EnQuest said it remained committed to the UK North Sea as it continued to see "significant" opportunities to create value.

Looking ahead, Chief Executive Officer Amjad Bseisu said: "EnQuest enters the second half of 2026 from a position of strength and, looking ahead, 2027 will mark the beginning of a new era for the group. With a larger and more diverse production base, stronger cash generation and an expanded inventory of organic and inorganic growth opportunities, we are creating an EnQuest that is fundamentally different in scale, but which remains true to the disciplined, value-focused approach that has defined our success.

"As we complete the Malaysia transaction and begin integrating these world-class assets, we believe the years ahead have the potential to be the most exciting and value-creating in the company's history."

EnQuest shares fell 4.0% to 26.26 pence each on Thursday afternoon in London.

Copyright 2026 Alliance News Ltd. All Rights Reserved.