Home Money MARKET REPORT: North Sea oil producer Enquest posts loss after hit from windfall tax

MARKET REPORT: North Sea oil producer Enquest posts loss after hit from windfall tax

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Tax burden: Energy company Enquest, founded in 2010 and active in Britain and Malaysia, will launch a £12 million buyback program this year

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North Sea oil producer Enquest will buy back shares from investors for the first time, claiming the windfall tax is hurting the sector.

The energy company, which was founded in 2010 and operates in Britain and Malaysia, is set to launch a £12 million buyback program this year.

Enquest’s finances improved in 2023 as debt fell to £381 million, down from £567 million the year before. It has since fallen to £324 million.

Sales were hit by lower oil and gas prices, while losses fell from £33m to £24m.

Yesterday shares rose 0.7 per cent, or 0.1p, to 14.1p.

Tax burden: Energy company Enquest, founded in 2010 and active in Britain and Malaysia, will launch a £12 million buyback program this year

Tax burden: Energy company Enquest, founded in 2010 and active in Britain and Malaysia, will launch a £12 million buyback program this year

But it warned it is operating in a “challenging UK budget environment” as the chancellor’s decision to extend the energy profits tax for a year until 2029 represented the fourth change in the past two years.

Chief executive Amjad Bseisu said the levy “has led to a number of industry participants accelerating their focus away from the UK North Sea”.

The windfall tax was introduced in 2022. Oil and gas companies pay a 40 percent tax rate. After the levy was increased to 35 percent in January last year, they now pay 75 percent.

Capricorn Energy also wants to return cash to its shareholders.

It has proposed paying a special dividend of £40 million at the end of June. Shares rose 4.8 percent, or 8p, to 175p.

The FTSE 100 rose 0.3 percent, or 20.64 points, to 7,952.62 and the FTSE 250 rose 0.4 percent, or 74.07 points, to 19,884.73.

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Stock watch – Northamber

1711664934 131 MARKET REPORT North Sea oil producer Enquest posts loss after

1711664934 131 MARKET REPORT North Sea oil producer Enquest posts loss after

Shares in a technology distributor fell 22.8 per cent, or 10.5p, to 35.5p after a sector-wide recession.

Northamber, which sells laptops, keyboards and memory cards, said industry data shows UK distribution sales fell 10% in the six months to the end of December.

Inventories rose as demand declined. Revenues fell 14 percent to £29 million in the first half of the financial year, while losses rose from £250,000 to £413,000.

AO World also had a big day after the online electronics retailer said profits for the year to the end of March should be at the top end of the £28m to £33m range.

Shares rose 12.2 percent, or 10.95p, to 100.8p.

Investors in Direct Line should take comfort from new boss Adam Winslow, whose appointment is a “useful step in restoring credibility”, according to Deutsche Bank Research, which urged its clients to buy the insurer’s shares – the price rose by 0.3 percent, or 0.65 percent. p, up to 195.05 p.

Vodafone chairman Jean-Francois van Boxmeer bought more than £500,000 worth of shares in the telecom giant, buying up 823,500 at 69 cents each. Vodafone rose 1.5 percent, or 1.04p, to 70.46p.

Struggling music company Hipgnosis, which owns the rights to songs by artists including Shakira and Blondie, said its portfolio has been independently valued at almost £1.6bn, sending it up 8.3 per cent, or 5.3p to 69p.

It will outline proposals for its future by April 26 and ask shareholders to vote on any decision.

Molecular diagnostics company Genedrive hopes its genetic kit, which could prevent babies from becoming deaf, will be approved by US regulators. It added that it needs to raise new funds as shares rose 3.9 per cent, or 0.13p, to 3p.

Podcast publisher Audioboom has added six shows to its network, including one hosted by Arnold Schwarzenegger’s daughter Katherine – gaining 5.4 percent, or 12.5p, to 245p.

Kitwave, which sells and supplies goods, bought wholesaler Total Foodservice for £21m, rising 4.2 per cent, or 15p, to 371p.

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