EnQuest has made a loss for the second year in a row due to the Energy Profits Levy (EPL).
The impact the windfall tax on oil and gas profits is having was reflected in the $30.8m (£24.41m) post-tax loss made by the energy company, after a $41.2m (£32.65) loss was made in 2022.
A 20% decline in revenue nearly mirrored the 18.2% decline in the oil price, while production also fell by more than 7%.
The Group paid a $77.2m (£61.17m) net EPL charge, which contributed to the $262.6m (£208.08m) total tax charge, representing an effective tax rate of 113.3%.
Signs of a green future?
EnQuest Chief Executive, Amjad Bseisu, said: "Against the backdrop of a challenging UK fiscal environment, EnQuest has reduced net debt by c.$1.5bn (£1.19bn) since its peak and with significant tax assets remaining, the business has a strong base, and successful track record of executing quick payback, life-extending acquisitions, from which to pursue value-accretion and production growth through M&A.
"As we further enhance our position as a key player in the energy transition, we continue to progress our new energy and decarbonisation ambitions at the Sullom Voe Terminal under the management of our newly established subsidiary, Veri Energy.
"We have already reduced our total UK emissions by more than 40% from the 2018 benchmark, significantly ahead of the UK's North Sea Transition Deal targets, while our credible net zero transition plan was a key factor in EnQuest securing a B rating in the 2023 CDP Climate Change Survey.
“We have set the foundations for a pivot to growth during 2024 and continue to perform well against our full year targets, with production to 29 February 2024 averaging around 44,500 Boepd."
Boardroom shuffle
The Group has made a number of changes at the top as Salman Malik steps down from the board to focus his time in Veri Energy.
Veri, a wholly owned subsidiary of EnQuest, is initially focussing on progressing world scale decarbonisation and new energy projects, including carbon capture and storage, green hydrogen, and electrification, at the Sullom Voe Terminal.