Serinus Energy H1 losses widen on Covid-19 hit

Pre-tax losses widened 258% to $12.9m despite the group more than doubling interim revenues to $13.3m, as the improved income performance was offset by higher royalty and production costs and asset depletion and depreciation.

Funds from operations surged 207% to $4.3m.

The AIM-listed company lowered production expenses per barrel throughout the period to an average of $8.68, almost half of what it was a year earlier, as a result of a significant decline in commodity prices during the half.

While capex ballooned 93% to $3.1m, Serinus noted that the "ongoing uncertainty" around Covid-19 and the difficulty in moving personnel and equipment, all future capital investment pl ans had been postponed and would only be allocated to ensure "safe and continued" operations at its production facilities.

Operationally, Serinus' Romanian 3D acquisition programme, due to be completed in the first half of 2020, has been postponed due to Covid-19 restrictions, while production increases in Tunisia were "lower than anticipated" as a result of lockdowns stemming from the pandemic.

As of 0840 BST, Serinus shares were up 4.35% at 6.0p.