14th Aug 2020 09:51
(Alliance News) - Serinus Energy PLC on Friday noted production and revenue increased in the first half of 2020 and pretax loss widening significantly, but warned on its ability to repay a loan due next year.
The oil company with operations in Romania and Tunisia posted a net loss before tax in the first half ended June 30 of USD12.9 million, widening from USD3.6 million a year prior.
Impairment expenses were up to USD9.6 million, no such accounting hit a year prior.
Revenue was up in the six months however to USD13.3 million from USD6.4 million a year before.
Average production increased to 2,495 barrels of oil per day, up from 680 barrels of oil per day a year before, with operations in both Romania and Tunisia making significant progress.
Production increases in Tunisia however were lower than expected due to the effects of Covid-19.
Realised crude oil price per barrel averaged USD31.96 over the half, down from USD63.07 per barrel a year prior.
The company doesn't pay a dividend.
Serinus Energy said: "In the first half of 2020, the price of oil has been affected by the global spread of Covid-19 and the resultant reduction in oil demand, compounded by the collapse in oil and gas prices.
"Although global oil prices have partially recovered since April, there remains significant uncertainty over the impact of Covid-19 on future global oil demand and the outlook for commodity prices including gas prices in Romania.
Serinus Energy noted that its base-case cashflow forecast indicates that, under current assumptions, it will not be able to repay the remaining USD6.4 million it owes to the European Bank for Reconstruction & Development, due on June 30, 2021. The company said it is in discussions with the EBRD about restructuring the loan. Back in June, Serinus paid USD2.0 million of the total USD8.4 million convertible loan, with the remaining USD6.4 million deferred for 12 months.
"Accordingly, this represents a material uncertainty that may cast significant doubt on the ability of the group to continue as a going concern."
Serinus Energy shares were up 4.4% at 6.00 pence each on Friday morning in London.
By Greg Roxburgh; [email protected]
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