Markets News

UPDATE 1-EnQuest's H1 cash flow falls to $88 mln amid writedowns

(Adds detail on H1 results)

LONDON, Sept 3 (Reuters) - North Sea focused oil producer EnQuest generated $87.5 million in free cash flow in the first half of the year compared with $138 million a year ago, it said on Thursday, as it wrote down $252 million of its assets due to lower oil prices.

EnQuest, which has net debt of around $1.35 billion compared with a market capitalisation of $298 million, reiterated it expected to generate cash over the full year if the oil price averages $33 a barrel this year and $27 a barrel next year.

EnQuest, which has $270 million to spend from cash and loans, reduced its net debt from $1.41 billion at the end of 2019. It said it had sought and received from its lenders a pre-emptive waiver of its liquidity test for the rest of 2020.

It hedged 11.4 million barrels of its output this year, with the bulk at a floor price of $43 a barrel. It made $35 million on its hedge programme in the first half, realising an average price of $43.6 a barrel.

Reporting by Shadia Nasralla; Editing by Mark Potter