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UK oil company EnQuest is back on steadier ground.
The company, which went through a financial restructuring last year to secure its future, today said that it successfully cut costs and boosted profits over 2016, and a key new project in the Kraken oilfield is on track to be delivered more cheaply than expected.
Gross profits for the year were 13.2 per cent higher than in 2015, at $196.1m.
It reiterated today it was on track to report its first delivery from the Kraken oil field in the North Sea in the second quarter of this year, despite a more than 11 per cent slide in its realised price of oil.
EnQuest cut capital expenditure down to $609.2m, even lower than the $620m-to-$670m range it had indicated.
Chief executive Amjad Bseisu said:
2016 saw the successful restructuring of our balance sheet, designed to strengthen EnQuest’s liquidity position, to reduce the level of its cash debt service obligations and to enable it to bring the Kraken development onstream.