Shares in EnQuest PLC fell 14% to 15p in early trading on Tuesday after it reported a first-half loss and said it had applied to delist from Nasdaq Stockholm.
The oil and gas producer posted half-year results showing reported profit before tax of US$112.9 million, down 38% as revenue fell 22% to US$732.7 million but costs declined.
A post-tax loss of US$21.2 million was reported, compared to a profit a year earlier of US$203.5 million, which it said was driven by the impact of the UK Energy Profits Levy.
However, it still generated US$140 million of free cash flow, helped by working capital movements, though down from US$332.1 million a year ago, which enabled net debt to be cut to US$592.1 million from US$717.1 million at the end of 2022.
During the period, production averaged just under 45,500 barrels of oil equivalent per day, down from just over 49,700 this time last year, and the company was awarded four carbon storage licences by the North Sea Transition Authority.
Chief executive Amjad Bseisu said: "The UK's oil and gas sector faces significant challenges and loss of competitiveness due to uncertainty following the adverse changes to the fiscal regime. While we appreciate the government's intentions to improve the attractiveness of the sector through the Energy Security Investment Mechanism, we believe timely legislative reform is required to restore confidence in the UK oil and gas sector to protect jobs and deliver both energy security and decarbonisation.”
On the plans to delist from Stockholm, the company said it was a legacy of its early history and made sense before Brexit but now, as it has no legal or physical presence in Sweden, it has "created a source of additional unexpected compliance cost".
A formal application for delisting will be submitted no earlier than three months from now.