14th Aug 2019 12:56
(Alliance News) - Oil & gas firm Serinus Energy PLC said Wednesday its interim loss widened in the first half of 2019, on higher costs , despite growth in revenue.
Shares in Serinus Energy were 17% lower at 9.15 pence on Wednesday in London.
For the six months to the end of June, Serinus's pretax loss widened to USD3.6 million from USD338,000 a year before.
This was due to higher production expenses at USD2.0 million from USD1.3 million, depletion and depreciation costs of USD2.4 million from USD888,000, and a one-off windfall tax of USD669,000.
Revenue however grew by 40% to USD5.9 million from USD4.2 million, driven by a contribution from natural gas in Romania.
Total group production was 680 barrels of oil equivalent per day, up 87% from 363 boe per day in the prior year.
In Tunisia, production fell to 308 boe from 363 boe, due to declines in crude oil and natural gas.
However, with the start of production from the Moftinu-1003 gas well in April, Romania's total production was 372 boe per day for the period, versus none a year before.
Despite the commencement of production, Serinus remains in a tight cash position due to production delays, and as a result has breached financial covenants associated with its debt held will the European Bank of Reconstruction & Development.
Serinus has USD2.7 million of senior debt due on September 30, and convertible debt to be repaid in four instalments staring from June 30, 2020.
As at June 30, Serinus had a working capital deficit of USD20.8 million, widened from USD15.4 million as at December 31.
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