North Sea firm posts loss after hit from windfall tax

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

the energy firm, which was set up in 2010 and operates in the UK and Malaysia, is to launch a £12m repurchase programme this year.

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

revenue was hit by lower oil and gas prices while its losses narrowed to £24m from £33m.

Yesterday its shares rose 0.7pc, or 0.1p, to 14.1p. But it warned that it is operating in a ‘challenging UK fiscal environment’ as the Chancellor’s decision to extend the energy profits levy by a year to 2029 represented the fourth change in the last two years.

Chief executive Amjad Bseisu said the levy ‘ has resulted in a number of industry participants accelerating their shift in focus away from the UK North Sea’.

the windfall tax was introduced in 2022. oil and gas firms pay a 40pc tax rate. With the levy raised to 35pc in January last year, they now pay 75pc.

Capricorn Energy also wants to return cash to its shareholders.

It has proposed paying a special £40m dividend by the end of June. Shares rose 4.8pc, or 8p, to 175p.

the FTSE 100 was up 0.3pc, or 20.64 points, to 7952.62 and the FTSE 250 was up 0.4pc, or 74.07 points, to 19,884.73.

AO World also had a stellar day after the online electrical retailer said its profit for the year to the end of March should be at the top end of its £28m to £33m range.

Shares surged 12.2pc, or 10.95p, to 100.8p.

Investors in Direct Line should be comforted by new boss Adam Winslow whose appointment is a ‘useful step in re- establishing credibility’, according to Deutsche Bank research, which urged its clients to buy the insurer’s stock – it climbed 0.3pc, or 0.65p, to 195.05p.

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

troubled music firm Hipgnosis, which owns the rights to songs by artists such as Shakira and Blondie, said that its portfolio has been independently valued at nearly £1.6bn, lifting it 8.3pc, or 5.3p, to 69p.

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

Molecular diagnostics firm Genedrive is hoping its genetic kit that can prevent babies going deaf will be approved by US regulators. It added that it need to raise fresh funds, as shares rose 3.9pc, or 0.13p, to 3p.

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

Kitwave, which sells and delivers goods, bought wholesaler total Foodservice for £21m, and rose 4.2pc, or 15p, to 371p.