Serinus Energy posts strong first-half financial results

Serinus Energy reported revenue for the first nine months of the year of $41.8m (£34.63m) on Monday, up from $25.7m year-on-year.

The AIM-traded firm said during the period, the Moftinu Gas Plant surpassed produced revenues of $87m since first gas in 2019.

Net income for the nine months ended 30 September totalled $3.4m, up from $0.8m year-on-year, while funds from operations rose to $11.1m from $7.8m.

EBITDA for the first three quarters of the year came in at $11.4m, growing from $8.9m in the same period last year, while gross profit ticked up to $11.8m from $4.4m.

The company said it realised a net price of $162.18 per barrel of oil equivalent for the nine months, comprising a realised oil price of $101.04 per barrel, and a realised natural gas price of $36.66 per million cubic feet.

Its operating netback remained “strong”, the board said, and rose to $120.13 per barrel of oil equivalent from $34.13 per barrel a year ago.

That consisted of a Romania operating netback of $195.73 per barrel equivalent, up from $37.79, and a Tunisia operating netback of $59.11 per barrel equivalent, from $26.05.

Capital expenditures totalled $8.6m for the nine months ended 30 September, up from $9.3m year-on-year, with Romania totalling $6.9m and Tunisia reaching $1.7m.

Serinus said its working capital surplus increased to $0.8m, from $0.6m at the end of the 2021 year, with its cash balance at period end rising to $8.8m from $8.4m over the same period.

“On 5 October, the company announced that the Moftinu Nord-1 well was drilled to a total depth of 1,000 metres, targeting four prospective hydrocarbon zones,” the board said of post-period events.

“Well logging and gas show readings determined that these zones had indications of residual gas, but they do not contain sufficient gas resources to justify proceeding with the testing and completion program for the well.

“Drilling operations were performed without incident.”

At 1335 GMT, shares in Serinus Energy were down 4.76% at 10p.

Reporting by Josh White for Sharecast.com.