EnQuest pays its first dividend after a swing to an annual profit

EnQuest, a North Sea oil producer, declared its first ever final dividend of 15 million dollars on Thursday. The higher oil prices helped to boost the company's annual profit after tax.

The shares of the London listed energy group rose by 3.4% at 13.8 pence as of 0830 GMT after it announced that it would pay its first dividend of 0.616 penny per share in June.

It reported a profit after tax of $93.8 millions for 2024. This follows a loss of $30.8 million the year before.

EnQuest has declined to provide an update about the discussions ahead of EnQuest's deadline to submit an offer on April 4.

Serica said previously that the deal would be structured as a full-share offer from EnQuest. This will include a capital return to Serica shareholders and give them a majority in the combined company, with shares listed on the London Stock Exchange.

EnQuest’s net debt dropped to $386 millions at the end last year, from $481million at the end 2023.

EnQuest, like other UK oil producers, is subject to the windfall tax, introduced to counter rising energy prices after Russia invaded Ukraine in 2022. The Labour government increased this tax last October, and extended it until 2030.

Steve Bowyer of EnQuest, the general manager for North Sea operations at EnQuest, says that it is time to review it sooner.

Bowyer said in an interview that "consultation is encouraging, but we need to make a change by 2030."

The headline tax rate for the oil and gas industry has increased to 78%, the highest of any country in the world.

(source: Reuters)