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 £12million repurchase programme this year.
Enquest’s finances improved in 2023 as debt fell to £381million, from £567million the year before. It has since fallen to £324million.
Revenue was hit by lower oil and gas prices while its losses narrowed to £24million from £33million.
Yesterday its shares rose 0.7 per cent, or 0.1p, to 14.1p.
Tax squeeze: Energy firm Enquest, which was set up in 2010 and operates in the UK and Malaysia, is to launch a £12m repurchase programme this year
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 40 per cent tax rate. With the levy raised to 35 per cent in January last year, they now pay 75 per cent.
Capricorn Energy also wants to return cash to its shareholders.
It has proposed paying a special £40million dividend by the end of June. Shares rose 4.8 per cent, or 8p, to 175p.
The FTSE 100 was up 0.3 per cent, or 20.64 points, to 7952.62 and the FTSE 250 was up 0.4 per cent, or 74.07 points, to 19,884.73.
Stock Watch – Northamber
Shares in a technology distributor plunged 22.8 per cent, or 10.5p, to 35.5p after an industry-wide downturn.
Northamber, which sells laptops, keyboards and memory cards, said industry data showed that UK distribution sales fell 10pc in the six months to the end of December.
Stock levels increased as demand weakened. Revenues fell 14 per cent to £29million in the first half of its financial year while losses rose from £250,000 to £413,000.
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 £28million to £33million range.
Shares surged 12.2 per cent, 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 0.3 per cent, 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 1.5 per cent, 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 £1.6billion, lifting it 8.3 per cent, 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 3.9 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 – and gained 5.4 per cent, or 12.5p, to 245p.
Kitwave, which sells and delivers goods, bought wholesaler Total Foodservice for £21million, and rose 4.2 per cent, or 15p, to 371p.
