EnQuest Keeps 2026 Production View as UK Windfall Tax Hits Profit

(Credit: EnQuest)

North Sea-focussed oil producer EnQuest maintained its 2026 production outlook on Wednesday, banking on investments in Britain and South East Asia, after Britain's windfall levies hit last year's post-tax profit.

Like its rivals, EnQuestcontinues to face challenges from the UK's Energy Profits Levy, which has raised concerns around the competitiveness of North Sea producers. The company has been working to lift output from mature assets to counter third-party outages.

The Middle East war had not caused material disruption to its operations so far, EnQuest said, but noted the volatility in oil prices caused by supply disruptions stemming from the conflict.

Oil prices fell about 4% on Wednesday after reports that the United States had sent Iran a 15-point proposal aimed at ending the Middle East war, raising prospects of a ceasefire.

Shares in the company fell 4.4% to 17.74 pence at 0818 GMT.

The company reported a 98.3% slump in post-tax profit to $1.6 million for 2025, hurt by the two-year extension of the windfall tax. Underlying profit, excluding items, would be $125.5 million, it said.

EnQuest reiteratedthat it expects 2026 production in the range of 41,000-45,000 barrels of oil equivalent per day (boepd), after last year's output of 45,606 boepd exceeded its expectations.

(Reuters - Reporting by Ankita Bora and Nithyashree R B in Bengaluru; Editing by Rashmi Aich and Sumana Nandy)