EnQuest back into profit as it finalises the Kraken

EnQuest back into profit as it finalises the Kraken

Independent UK oil producer EnQuest (LSE:ENQ) has returned to the black this year after a US$1.2 billion write-down to the value of its assets contributed to losses of $1.3 billion in 2015.

The company resorted to a $400 million refinancing package last October, which seems to have paid off as a pre-tax profit of $217.2 million for 2016 was announced.

EnQuest increased output by 8.7% over the year, pushing production up to 39,751 barrels per day, its highest ever annual production figure.

The North Sea-focused firm said that cost-cutting measures allowed it to offset lowered oil prices over the course of the last financial year.

However, with oil prices slowly returning and the news that its Kraken oil field is set to come online, EnQuest has reasons to be optimistic as it looks to build on its latest financial results.

The Kraken is one of the largest oil fields in the North Sea, and is currently running under budget and on-time, with the firm expecting the project to come on stream during the second quarter.