EnQuest PLC

Good morning, ladies and gentlemen, and welcome to Enquest PLC's results for the first half of 2025. Throughout this webcast, you will have the opportunity to submit questions at any time, and we will look to answer as many of these as possible during the Q&A session at the end of the presentation. Without further ado, I will hand you over to our Chief Executive Officer, Amjad Bezezu.

Thank you very much, Craig, and good morning, ladies and gentlemen. Welcome to our 2025 year half-year results presentations. Thank you very much for the time joining us today. My name is Amjad Biseso. I'm the CEO of Inquest. Joining me today is our Chief Financial Officer, Jonathan Kopis, and Steve Boyer, our UK North Sea Managing Director. Craig Baxter is also joining us, Head of Investor Relations and Corporate Affairs. Steve and Jonathan lead the high-performing teams across our business, and our operational performance has remained very strong in the first half of the year, as you will see. Let's start with the backdrop of the UK. The UK North Sea remains one of the most challenging environments in oil and gas, as evolving fiscal and regulatory pressure continue to undermine global competitiveness. With the sector losing 1,000 jobs every month, according to our industry OEUK outfit, it's crucial that the government urgently reforms the energy profits levy, which now delivers a fraction of the originally projected revenues. Only a fairer, more predictable tax environment can help companies like ours to invest and secure a UK energy supply that protects jobs in this critical energy transition environment and allow success of the business. The opportunity is there now and today to enact positive change in the upcoming autumn budget. We are poised to play a leading part in enhancing the UK's energy security and protecting the jobs that are vital to our country and also the energy transition ambitions. So let's start by looking at our fundamentals which have been strong that underpin the business. For those who are less familiar with Enquest, Enquest is an independent energy company with operations focused on the UK North Sea and Southeast Asia. We listed in 2010 and our foundations are based on acquiring mature underdeveloped assets and from the majors and developing those assets and producing more out of those assets. We've done that in nine hubs and continue now with the new expansion in Southeast Asia to have seven operating assets. We've built a strong expertise in mature asset management, driving efficiencies, optimizing operations to extend lives. Over the years, our capability mix has expanded also to maximize recovery of oil through top quartile drilling and major project executions. We are also now proud to be recognized as we've built a very strong sector-leading decommissioning business. Over the past 12 months, we've also expanded our Southeast Asia business significantly. We are now in four countries, building on a strong reputation that we've forged over 11 years of successful operations in Malaysia, and having been chosen the Operator of the Year two years in a row in Malaysia, something I think is a first to have happened. With the recent acquisition of Harbors Vietnam business, we now have seven assets, as I mentioned, with material reserves and resources in place. And we operate nearly all of our assets, deploying our operating expertise to maximize our value, which is our big business proposition. We also operate the Salonville terminal in the Shetland Island in Scotland, which is a very critical asset for us, both upstream, as well as for our new energy decarbonization and renewable business. which is varied. We've got a number of assets which have also moved into decommissioning over the last few years and have reached the end of their useful economic lives. So we have had, from taking the assets, took a decommissioning of the assets, a full cycle of asset management. As we're all aware, the energy landscape is in transition. And to ensure our long-term success, we recognize that the business must continue to show resilience, creativity, and adaptability. The combination of the core capabilities set for Inquest set us apart from any of our peers. We are able to take these assets and produce more out of these assets and have proven that over the last 15 years. By lowering cost, improving uptime, these assets last for longer and run in the hands of us as a better operator. Since our inception, we've extended the useful life of all nine assets that we've operated. Next slide. Our strategy is underpinned by us being established as a top quartile operating company, both in the UK and in Southeast Asia. This is demonstrable across the whole life cycle, as I mentioned, of the assets from the beginning through decommissioning. During the first half of 2025, our production efficiency was 89% and would have been 94% excluding a third party infrastructure outage in Magnus, which is certainly upper quartile and maybe even best in class. With 96% of our 2P reserves under our operatorship, we maintain control over our asset management, which is a key factor for our excellence over the years. The operational control has been pivotal in our ability to extend the lives of every asset that we've operated and also provide us with a line of sight of material organic opportunities around our assets for optimizing our core assets. We've done that in Magnus, Kraken, P-Mate, Seligi, and our other assets. We can now proudly say that our expertise extends to the decommissioning performance, where we've executed 81 wells since 2022. And the activity has been mostly focused on Thistle and Heather, where we recently completed also the largest lift of top sites in the UK, 15,300 tons in 2025, the heaviest lift planned in 2025. We have now completed the Heather disembarkation and look forward to disembarkation of Thistle in early 2026. And again, as I said, we're very proud to have now the ability to say we are sector leading in the decommissioning area also alongside the other areas like drilling, project execution and operations. This new capability is key enabler for us both to transact in the UK and to maximize the value of our assets. As you will see from Jonathan's presentation, we've had a significant continuing deleveraging path during which we've directed our free cash flow to repay around 1.6 billion of debt. We remain very much ready for our transformative growth and looking to utilize our tax asset. Our net debt, as mentioned, continues to go down and was $377 million on the 30th of June. And our liquidity has increased from $475 million at the end of last year to $578 million at the end of June. We've been clear on our strategic focus on executing transactions, which we have done in Southeast Asia, and using our UK tax asset of 3.3 billion to execute another transaction in the UK. It's a matter of public records that we were in discussions with Sereca earlier this year about a combination, which didn't come to fruition. but we remain engaged in negotiations across several other UK growth opportunities. And everyone at Enquest is motivated to complete a value accretive UK deal in the coming months, similar to the deals that we've done in Southeast Asia. We also remain active outside of the UK, adding scale to our business in Southeast Asia. Next slide. where conditions are conducive to investments across the life cycle. Over the past 12 months, we've executed five growth transactions across Southeast Asia, and we've stated that we see this as part of a business reaching $35,000 oil equivalent production by the end of the decade. We have visibility now on getting to our goal through the acquisitions that we've made. These transactions include a full corporate acquisition in Vietnam, which brings flowing barrels, which have produced over 5,000 barrels in the first half of this year. Development of existing infrastructure to unlock significant gas volumes. That's done in PMH Saligi, where we have signed a gas sales agreement and we will be starting to produce 70 million scuffs a day early next year for production into the system. New developments like Diwa, in Sarawak as well as in Brunei with the joint venture with the government 50-50 joint venture which we've announced recently which will be gas weighed into gas sales agreement and into LNG plants and a significant expiration and appraisal opportunity in Indonesia with us being as operator and BP and the LNG Tenggu Alliance being our very strategically important partner because we have access to the infrastructure there. Our growth in the region sees Enquest in these new areas, adding three new countries to our main hub of Vietnam and emphasizing the strong reputation we've built over 10 years operating in Malaysia. I was extremely proud to see Enquest again named as Operator of the Year in Malaysia, the first of any operator to achieve this accolade. And this is clear that Petronas' recognition of our credentials has opened the doors for us in many other countries. We've also received the award for decommissioning excellence in Southeast Asia, of which I'm extremely proud. The Southeast Asia team continues to deliver against our strategic growth aims, and we intend to build on our recent deal momentum with further M&A activities. I'll hand over to Jonathan to cover the financial performance for the first half of the year.

Thanks, Amjad. So just moving to my first slide, I think the first thing to say here is that, financially speaking, the foundation of everything we do is our capital structure, and we are committed to maintaining both a strong and flexible capital structure. Now, to that end, in the last 12 months, we have taken steps to simplify our balance sheet as well as continue paying down or reducing our net debt. At the moment, we have a structure that is built primarily around our flexible RBL and also our foundation of bonds as well. When we think about capital discipline, we are focused on A few things. First of all, fast payback investment. That is where we can see opportunity organically within the portfolio. And alongside that, of course, we're also focused on growth, diversification and internationalization. And Amjad spoke about our transactional activity in Vietnam, but also ambitions both in the North Sea and Southeast Asia. And of course, we also paid our maiden dividend in June of this year. If we move on to the income statement, Amjad mentioned that in the first half we had third party disruption at the Ninian facility. And that meant that we lost about three and a half thousand barrels a day of production in the first half. Now, that's equivalent to about one cargo deferred. And the value of that at prevailing prices would have been something like 40 to $50 million. We also saw a 14% year on year reduction in Brent. However, we have a strong commodity hedge position and gains on that hedge book mean that in the period we reported revenue of $549 million, which was a strong delivery. Cost of sales totaled $389 million. And within that, we held operating costs flat year on year. And that was despite an 11% weakening in the US dollar. So again, a strong performance here in terms of costs. On a unit basis, of course, the numbers are again impacted by the Magnus outage. And including hedging, our unit OPEX for the period was $26.4 per BOE. Our adjusted EBITDA was $235 million. And the other number that jumps out of the income statement is our tax charge, which is significantly distorted by the two-year extension to EPL and the deferred tax impact that we see coming through the income statement. So within that $239 million tax charge, 50 of it was current and 189 was deferred, 124 of that figure being this two-year extension to EPL, which has impacted our numbers and you'd have seen that impact across the sector as well. However, if you move to free cash flow, we delivered free cash flow in the period of $33 million and And from that, we paid our $15 million dividend and we reduced our net debt to $377 million. CapEx in the period was $83 million. We spent $31 million on decommissioning. And at the 30th of June, our cash and available facilities decreased. had increased to $578 million, which is about a $100 million rise on the position at the end of 2024. Now, driving that increase was a positive redetermination outcome on our RBL, which we detail on the next slide. So through our year end redetermination, we saw a 34 percent uplift in terms of our capacity on the RBL. And that reflects the tangibility, but also the consistent delivery and high levels of uptime on our assets as well. As Amjad mentioned, you can see that in recent years, we have reduced our net debt position by $1.6 billion. And that has taken very significant focus and very significant discipline. And it's something we're proud of. We have no debt maturities before 2027. And of course, the other key asset that we have as well are our tax assets. And those at the 30th of June total of $2 billion in the recognized category with a further $1.2 billion that are yet to be recognized. Finally, turning to our guidance, we're reiterating all of our guidance points today. These are given on a pro forma basis. Production, 40,000 to 45,000 BOE a day. Operating expenditure, $450 million for the year, capex of $190 million, decommissioning of $60 million. And of course, as I said, we paid our maiden dividend of $15 million. Looking to 2026, organic growth is our focus in terms of the core portfolio. And we have projects such as the Kraken EOR project and the optimization of Magnus productions. In terms of operating expenditure, we are consistently focused on maintenance and maximizing our asset uptime and continuing the excellent production efficiencies, which we continue to see across the portfolio, both in the North Sea and Southeast Asia. And in terms of capex, we remain very focused on low cost, quick payback opportunities. And in terms of shareholder returns, these sit within our capital priorities and we aim to deliver every year a sustainable capital allocation framework that builds value for our shareholders. So now, just handing over to Steve, who will cover the operations.