REG - Serinus Energy PLC - Q1 2024 Financial Results
13/05/2024 07:00
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RNS Number : 0680O Serinus Energy PLC 13 May 2024
13 May 2024
Press Release
Q1 2024 Interim Financial Results
Jersey, Channel Islands, 13 May 2024 -- Serinus Energy plc ("Serinus" or the
"Company" or the "Group") (AIM:SENX, WSE:SEN) is pleased to announce its
Interim Financial Results for the three months ended 31 March 2024.
Q1 2024 Highlights
Financial
· Revenue for the three months ended 31 March 2024 was $4.6
million (31 March 2023 - $4.9 million)
· EBITDA for the three months ended 31 March 2024 was $0.9
million (31 March 2023 - $0.8 million)
· Gross profit for the three months ended 31 March 2024 was $1.0
million (31 March 2023 - $0.9 million)
· Net loss for the three months ended 31 March 2024 was $0.5
million (31 March 2023 - net loss $1.3 million)
· The Group realised a net price of $80.24/boe for the three
months ended 31 March 2024 (31 March 2023 - $78.87/boe), comprising:
o Realised oil price - $84.27/bbl (31 March 2023 - $80.07/bbl)
o Realised natural gas price - $10.99/Mcf (31 March 2023 - $12.72/Mcf)
· The Group's operating netback decreased for the three months
ended 31 March 2024 and was $33.04/boe (31 March 2023 - $39.52/boe), in line
with lower production volumes in Romania and significantly lower realised gas
prices, comprising:
o Romania operating netback - negative $55.66/boe (31 March 2023 -
$26.59/boe)
o Tunisia operating netback - $40.16/boe (31 March 2023 - $43.92/boe)
· Capital expenditures of $0.3 million for the three months ended
31 March 2024 (31 March 2023 - $2.4 million)
Operational
· Production in Chouech Es Saida continues to increase with the
benefits of artificial lift programme
· Long lead items for the Sabria W-1 sidetrack have been ordered
and are on schedule. Discussions are on-going with Compagnie Tunisienne de
Forage (CTF), the state rig company, regarding availability of rigs to perform
this sidetrack
· The Group completed lifting 62,930 bbl of Tunisian crude oil in
the second half of March 2024 at an average price of $82.76/bbl with the cash
proceeds of $3.2 million received in April 2024 (net of $2.0 million in
monthly prepayments previously received)
· The Moftinu Gas Field continues to produce at naturally
declining rates
· Production for the quarter averaged 635 boe/d, comprising:
o Romania - 49 boe/d
o Tunisia - 586 boe/d
· The Group continued its excellent safety record with no Lost
Time Incidents in first quarter of 2024
· The Group has withdrawn from the Preferred Bidder status in
Angola as it was unable to agree commercial terms with the Angolan authorities
About Serinus
Serinus is an international upstream oil and gas exploration and production
company that owns and operates projects in Tunisia and Romania.
For further information, please refer to the Serinus website
(www.serinusenergy.com) or contact the following:
Serinus Energy plc +44 204 541 7859
Jeffrey Auld, Chief Executive Officer
Calvin Brackman, Vice President, External Relations & Strategy
Shore Capital (Nominated Adviser & Broker)
Toby Gibbs +44 207 408 4090
Lucy Bowden
Forward Looking Statement Disclaimer
This release may contain forward-looking statements made as of the date of
this announcement with respect to future activities that either are not or may
not be historical facts. Although the Company believes that its expectations
reflected in the forward-looking statements are reasonable as of the date
hereof, any potential results suggested by such statements involve risk and
uncertainties and no assurance can be given that actual results will be
consistent with these forward-looking statements. Various factors that could
impair or prevent the Company from completing the expected activities on its
projects include that the Company's projects experience technical and
mechanical problems, there are changes in product prices, failure to obtain
regulatory approvals, the state of the national or international monetary, oil
and gas, financial , political and economic markets in the jurisdictions where
the Company operates and other risks not anticipated by the Company or
disclosed in the Company's published material. Since forward-looking
statements address future events and conditions, by their very nature, they
involve inherent risks and uncertainties, and actual results may vary
materially from those expressed in the forward-looking statement. The Company
undertakes no obligation to revise or update any forward-looking statements in
this announcement to reflect events or circumstances after the date of this
announcement, unless required by law.
Translation: This news release has been translated into Polish from the
English original.
Operational Update and outlook
Serinus Energy plc (the "Company" or "Serinus") is an oil and gas exploration,
appraisal and development company which is incorporated under the Companies
(Jersey) Law 1991. The Company, through its subsidiaries (together the
"Group"), acts as the operator for all of its assets and has operations in two
business units: Romania and Tunisia.
The Group is currently focused on enhancing production from its Tunisian
assets. The large underdeveloped Sabria field offers significant
opportunities in a well identified oilfield. Investments in artificial lift
and, in time, new wells offer near term production growth. The Satu Mare
Concession in Romania has excellent exploration potential that can offer the
Company another Moftinu style shallow gas development. Work continues and
exploration targets have been identified. The Moftinu gas field is a shallow
gas field that has initial high production rates followed by natural declines.
ROMANIA
In Romania the Group currently holds the 2,950 km(2) Satu Mare Concession.
The Satu Mare Concession area includes the Moftinu Gas Project which was
brought on production in April 2019 and has produced approximately 9.4 Bcf and
$93.4 million of revenue to the end of 2023. The Moftinu gas field is now
nearing the end of its natural life. The field has identified existing gas
in uncompleted zones that can be economically completed and produced with
higher gas prices and reduced windfall tax.
In addition to the Moftinu Gas Development Project the Satu Mare Concession
holds several highly prospective exploration plays. Serinus' recently
completed block wide geological review has highlighted the potential of
multiple plays that have encountered oil and gas on the block. Focus is on
proven hydrocarbon systems, known productive trends that need further data,
and studies of over 40 legacy wells on the concession area that have
encountered oil and gas. The concession is extensively covered by legacy 2D
seismic, augmented by the Group's own 3D and 2D acquisition programs that have
further refined the identified prospects. Putting this extensive
evidence-based analysis together in a block wide review has allowed the Group
to identify a pathway towards future exploration growth.
In October 2023, the Group was granted an exploration phase extension to the
Satu Mare Concession in Romania. The Moftinu gas field has been declared a
Commercial Area, all other areas of the Concession remain Exploration Area.
The exploration period extension is in two phases. The first phase of the
extension is mandatory and is two years in duration starting on 28 October
2023. The work commitment for the first phase is the reprocessing of 100
kilometres of legacy 2D seismic as well as a 2D seismic acquisition program of
100 kilometres including processing the acquired seismic data. The second
phase of the extension is optional and is two years in duration starting on 28
October 2025 with a work commitment of drilling one well within the concession
area with no total drilling depth requirement stipulated.
Tunisia
The Group's Tunisian operations are comprised of two concession areas.
The largest asset in the Tunisian portfolio is the Sabria field, which is a
large oilfield with an independently estimated original in-place volume of 445
million barrels-of-oil-equivalent of which 1.6% has been produced to date.
Serinus considers this historically under-developed field to be an excellent
asset for development work to significantly increase production in the
near-term. The Group has embarked on an artificial lift programme whereby
the first pumps in the Sabria field will be installed. Independent
third-party studies suggest that the use of pumps in this field can have a
material impact on production volumes.
The Chouech Es Saida concession in southern Tunisia holds a producing oilfield
that produces from four wells, three of which are produced using artificial
lift. Chouech Es Saida is a mature oilfield that benefits from active
production management. Underlying this oilfield are significant gas
prospects. These prospects lie in a structure that currently produces gas in
an adjacent block. Exploration of these lower gas zones became commercially
possible with the recent construction of gas transportation infrastructure in
the region. Upon exploration success these prospects can be developed in the
medium term, with the ability to access the near-by under-utilised gas
transmission capacity.
Financial Review
Liquidity, Debt and Capital Resources
During the three months ended 31 March 2024, the Group invested a total of
$0.3 million (2023 - $2.4 million) on capital expenditures before working
capital adjustments, out of which Romania incurred $nil million (2023 - $0.6
million) and Tunisia invested $0.3 million (2023 - $1.8 million).
The Group's funds from operations for the three months ended 31 March 2024
were $1.2 million (2023 -funds used in operations of $0.8 million).
Including changes in non-cash working capital, the cash flow used in operating
activities in 2024 was $0.3 million (2023 - cash flow from operating
activities of $0.01 million). The Group is debt-free and has adequate
resources available to deploy capital into both operating segments.
(US$ 000s) 31 March 31 December 2023
Working Capital
2024
Current assets 10,754 11,341
Current liabilities 16,131 16,926
Working Capital (5,377) (5,585)
The working capital deficit at 31 March 2024 was $5.4 million (31 December
2023 - $5.6 million).
Current assets as at 31 March 2024 were $10.8 million (31 December 2023 -
$11.3 million), a decrease of $0.5 million. Current assets consist of:
· Cash and cash equivalents of $0.6 million (31 December 2023 -
$1.3 million)
· Restricted cash of $1.2 million (31 December 2023 - $1.2 million)
· Trade and other receivables of $8.2 million (31 December 2023 -
$8.1 million)
· Product inventory of $0.8 million (31 December 2023 - $0.7
million)
Current liabilities as at 31 March 2024 were $16.1 million (31 December 2023 -
$16.9 million), a decrease of $0.8 million. Current liabilities consist of:
· Accounts payable of $7.9 million (31 December 2023 - $9.3
million)
· Decommissioning provision of $6.7 million (31 December 2023 -
$6.7 million)
o Canada - $0.8 million (31 December 2023 - $0.8 million) which is offset by
restricted cash in the amount of $1.2 million (31 December 2023 - $1.2
million) in current assets
o Romania - $0.5 (31 December 2023 - $0.6 million)
o Tunisia - $5.4 million (31 December 2023 - $5.3 million)
· Income taxes payable of $1.3 (31 December 2023 - $0.8 million)
· Current portion of lease obligations of $0.2 million (31 December
2023 - $0.1 million)
Non-current assets
Property, plant and equipment ("PP&E") decreased to $55.3 million (31
December 2023 - $56.0 million), as a result of depreciation and depletion.
There were no additions or adjustments to exploration and evaluation assets
("E&E") in the period. Right-of-use assets ("ROU") increased to $0.8
million (31 December 2023 - $0.5 million) due to a new lease in Tunisia for
our office and operating vehicles.
Funds from Operations
The Group uses funds from operations as a key performance indicator to measure
the ability of the Group to generate cash from operations to fund future
exploration and development activities. The following table is a
reconciliation of funds from operations to cash flow from operating
activities:
Period ended 31 March
(US$ 000s) 2024 2023
Cash flows from operations (264) 14
Changes in non-cash working capital 1,471 (813)
Funds from (used in) operations 1,207 (799)
Funds from operations per share 0.01 0.00
Tunisia generated funds from operations of $2.4 million (2023 - $0.5 million)
and Romania used funds in operations of $0.4 million (2023 - generated funds
from operations of $0.1 million). Funds used at the corporate level were
$0.8 million (2023 - $1.4 million) resulting in net funds from operations of
$1.2 million (2023 funds used in operations of $0.8 million).
Production
Period ended 31 March 2024 Tunisia Romania Group %
Crude oil (bbl/d) 494 - 494 78%
Natural gas (Mcf/d) 553 292 845 22%
Condensate (bbl/d) - - -
Total production (boe/d) 586 49 635 100%
Period ended 31 March 2023 Tunisia Romania Group %
Crude oil (bbl/d) 468 - 468 68%
Natural gas (Mcf/d) 361 979 1,340 32%
Condensate (bbl/d) - - - 0%
Total production (boe/d) 528 163 691 100%
For the three months ended 31 March 2024 production volumes were 635 boe/d, a
decrease of 56 boe/d against the comparative period (31 March 2023 - 691
boe/d).
Romania's production volumes were 49 boe/d in the period (31 March 2023 - 163
boe/d). Production continues to reflect the natural decline profile of
shallow gas fields.
Tunisia's production volumes increased to 586 boe/d against comparative period
(31 March 2023 - 528 boe/d) as a result of the ongoing artificial lift
programme at the Chouech es Saida field. The Group's oil fields' maintenance
programme and on-going field management at both the Sabria and Chouech es
Saida oil fields aims to further optimise production.
Oil and Gas Revenue
(US$ 000s)
Period ended 31 March 2024 Tunisia Romania Group %
Oil revenue 3,778 - 3,778 82%
Natural gas revenue 585 249 834 18%
Condensate revenue - - - 0%
Total revenue 4,363 249 4,612 100%
Period ended 31 March 2023 Tunisia Romania Group %
Oil revenue 3,360 - 3,360 69%
Natural gas revenue 305 1,210 1,515 31%
Condensate revenue - - - 0%
Total revenue 3,665 1,210 4,875 100%
REALISED PRICE
Period ended 31 March 2024 Tunisia Romania Group
Oil ($/bbl) 84.27 - 84.27
Natural gas ($/Mcf) 11.63 9.74 10.99
Condensate ($/bbl) - - -
Average realised price ($/boe) 81.99 58.45 80.24
Period ended 31 March 2023 Tunisia Romania Group
Oil ($/bbl) 80.07 - 80.07
Natural gas ($/Mcf) 9.39 13.97 12.72
Condensate ($/bbl) - - -
Average realised price ($/boe) 77.36 83.83 78.87
For the three months ended 31 March 2024, the Group generated revenue of $4.6
million, a decrease of $0.3 million against the comparative period (31 March
2023 - $4.9 million). The decrease is due to production decline in Romania
offset by increase in the average realised price to $80.24/boe (31 March 2023
- $78.87/boe).
The Group's average realised oil price increased by $4.2/bbl to $84.27/bbl (31
March 2023 - $80.07/bbl), and average realised natural gas prices decreased by
$1.73/Mcf to $10.99/Mcf (31 March 2023 - $12.72/Mcf).
Under the terms of the Sabria concession agreement the Group is required to
sell 20% of its annual crude oil production from the Sabria concession into
the local market, which is sold at an approximate 10% discount to the price
obtained on its other crude sales. The remaining crude oil production was
sold to the international market.
Royalties
Period ended 31 March
(US$ 000s) 2024 2023
Tunisia 536 457
Romania 11 63
Total 547 520
Total ($/boe) 9.52 8.42
Tunisia oil royalty (% of oil revenue) 12.5% 12.9%
Romania gas royalty (% of gas revenue) 4.4% 5.8%
Total (% of revenue) 11.9% 10.7%
For the three months ended 31 March 2024 royalties remained at $0.5 million
while the Group's average royalty rate increased to 11.9% (2023 - 10.7%).
In Romania, the royalty is calculated using a reference price that is set by
the Romanian authorities and not the realised price to the Group. The
reference gas prices in the first quarter were higher than the realised
prices. Romanian royalty rates vary based on the level of production during
the quarter. Natural gas royalty rates range from 3.5% to 13.0% and
condensate royalty rates range from 3.5% to 13.5%.
In Tunisia, royalties vary based on individual concession agreements. Sabria
royalty rates vary depending on a calculation of cumulative revenues, net of
taxes, as compared to cumulative investment in the concession, known as the "R
factor". As the R factor increases, so does the royalty percentage to a
maximum rate of 15%. During the first quarter of 2024, the royalty rate
remained unchanged in Sabria at 10% for oil and 8% for gas. Chouech Es Saida
royalty rates are flat at 15% for both oil and gas.
Production Expenses
Period ended 31 March
(US$ 000s) 2024 2023
Tunisia 1,689 1,127
Romania 475 764
Canada 1 21
Group 2,165 1,912
Tunisia production expense ($/boe) 31.75 23.79
Romania production expense ($/boe) 111.57 52.88
Total production expense ($/boe) 37.68 30.93
For the three months ended 31 March 2024 production expenses were $2.2
million, an increase of $0.3 million against the comparative period (31 March
2023 - $1.9 million). Per unit production expenses increased by $6.75/boe to
$37.68/boe (31 March 2023 - $30.93/boe).
Tunisia's production expenses increased by $0.6 million compared to the
comparative period of prior year and comprised $1.7 million (31 March 2023 -
$1.1 million), with per unit production expenses increasing to $31.75/boe
(2023 - $23.79/boe) which is consistent with increased production and
remaining high inflationary environment in Tunisia.
Romania's production expense decreased to $0.5 million against the comparative
period (31 March 2023 - $0.8 million), with the per unit expenses increasing
to $111.57/boe (2023 - $52.88/boe) due to naturally declining production and
the impact of inflation in Romania.
Canadian production expenses relate to the Sturgeon Lake assets, which are not
producing and are incurring minimal operating costs to maintain the property.
Operating Netback
Serinus uses operating netback as a key performance indicator to assist
management in understanding Serinus' profitability relative to current market
conditions and as an analytical tool to benchmark changes in operational
performance against prior periods. Operating netback consists of petroleum
and natural gas revenues less direct costs consisting of royalties and
production expenses. Netback is not a standard measure under IFRS and
therefore may not be comparable to similar measures reported by other
entities.
($/boe)
Period ended 31 March 2024 Tunisia Romania Group
Sales volume (boe/d) 585 47 632
Realised price 81.99 58.45 80.24
Royalties (10.08) (2.54) (9.52)
Production expense (31.75) (111.57) (37.68)
Operating netback 40.16 (55.66) 33.04
Period ended 31 March 2023 Tunisia Romania Group
Sales volume (boe/d) 526 160 687
Realised price 77.36 83.83 78.87
Royalties (9.65) (4.36) (8.42)
Production expense (23.79) (52.88) (30.93)
Operating netback 43.92 26.59 39.52
The Group's operating netback decreased to $33.04/boe (31 March 2023 -
$39.52/boe) due to lower production volumes in Romania and significantly lower
realised gas prices.
The Group however generated a gross profit of $1.0 million (31 March 2023 -
$0.9 million) due to increased production volumes in Tunisia complimented by
favourable oil prices in the first quarter of 2024.
Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA")
Serinus uses EBITDA as a key performance indicator to assist management in
understanding Serinus' cash profitability. EBITDA is computed as net
profit/loss and adding back interest, taxation, depletion & depreciation,
and amortisation expense. EBITDA is not a standard measure under IFRS and
therefore may not be comparable to similar measures reported by other
entities. For the three months ended 31 March 2024, the Group's EBITDA was
$0.9 million (31 March 2023 - $0.8 million).
Period ended 31 March
(US$ 000s) 2024 2023
Net loss (491) (1,269)
Finance costs, including accretion 36 421
Depletion and amortization 800 1,289
Gain on disposal of right-of-use assets (37) -
Decommissioning provision recovery (11) (17)
Tax expense 628 372
EBITDA 925 796
Windfall Tax
Period ended 31 March
(US$ 000s) 2024 2023
Windfall tax 70 286
Windfall tax ($/Mcf - Romania gas) 2.64 3.24
Windfall tax ($/boe - Romania gas) 16.44 19.79
During first quarter of 2024, the Group incurred windfall taxes in Romania of
$0.1 million (2023 - $0.3 million). The decrease is directly related to
lower average realised gas price which decreased to $9.74/Mcf in the first
quarter of 2024 from an average of $13.97/Mcf in the same period of last
year.
In Romania, the Group is subject to a windfall tax on its natural gas
production which is applied to supplemental income once natural gas prices
exceed 47.53 RON/MWh. This supplemental income is taxed at a rate of 60%
between 47.53 RON/MWh and 85.00 RON/MWh and at a rate of 80% above 85.00
RON/MWh. Expenses deductible in the calculation of the windfall tax include
royalties and capital expenditures limited to 30% of the supplemental income
below the 85.00 RON/MWh threshold.
Depletion and Depreciation
Period ended 31 March
(US$ 000s) 2024 2023
Tunisia 732 864
Romania 37 394
Corporate 31 31
Total 800 1,289
Tunisia ($/boe) 13.74 18.25
Romania ($/boe) 8.80 27.27
Total ($/boe) 13.92 20.85
For the three months ended 31 March 2024 depletion and depreciation expense
decreased to $0.8 million (31 March 2023 - $1.3 million), being a per unit
decrease of $6.93/boe to $13.92/boe (31 March 2023 - $20.85/boe). The
decrease is primarily due to lower depletable base on the Group's assets and
declining production in Romania.
General and Administrative ("G&A") Expense
Period ended 31 March
(US$ 000s) 2024 2023
G&A expense 905 1,360
G&A expense ($/boe) 15.75 22.01
G&A costs decreased during the first quarter of 2024 to $0.9 million (31
March 2023 - $1.4 million) despite the ongoing high inflationary environment.
Per unit G&A costs decreased by $6.26/boe to $15.75/boe (31 March 2023 -
$22.01/boe).
Share-Based Payment
Period ended 31 March
(US$ 000s) 2024 2023
Share-based payment - 1
Share-based payment ($/boe) - 0.02
No share-based payment expense was recognised in first quarter of 2024 (31
March 2023 - $1 thousand) since no options were granted during the period and
those options which are outstanding at 31 March 2023 to executive directors
and employees vested in prior periods.
Net Finance Expense
Period ended 31 March
(US$ 000s) 2024 2023
Interest on leases 32 -
Accretion on decommissioning provision 425 387
Foreign exchange and other (421) 34
36 421
For the three months ended 31 March 2024 net finance expenses decreased to
$0.04 million against the comparative period (31 March 2023 - $0.4 million)
predominantly due to foreign exchange gains arising from monetary assets and
liabilities denominated in foreign currencies.
Taxation
For the three months ended 31 March 2024 tax expense was $0.6 million (31
March 2023 - $0.4 million). The change in income tax expense is due to
increased taxable income of the Group's operations in Tunisia.
Share Data
As at the date of issuing this report, the following are the Directors stock
options outstanding, Long Term Incentive Program ("LTIP") awards, and shares
owned up to the date of this report.
Share Options LTIP Awards Shares
Executive Directors:
Jeffrey Auld 2,230,000 3,153,603 1,338,875
Non-Executive Directors:
Lukasz Redziniak - - 302,000
Jim Causgrove - - 290,000
Jon Kempster 1 - - 60,261
2,230,000 3,153,603 1,991,136
As of the date of issuing this report, management is aware of the following
shareholders holding more than 3% of the ordinary shares of the Group, as
reported by the shareholders to the Group:
Xtellus Capital Partners Inc 10.02%
Crux Asset Management 8.42%
Michael Hennigan 7.94%
Quercus TFI SA 7.18%
Marlborough Fund Managers 4.15%
Spreadex LTD 4.10%
The Directors are responsible for the maintenance and integrity of the
corporate and financial information on the Group's website. Legislation in
Jersey governing the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
Going Concern
The Group's business activities, together with the factors likely to affect
its future development and performance are set out in the Operational Update
and Outlook. The financial position of the Group is described in these
condensed consolidated interim financial statements and in the Financial
Review.
The Directors have given careful consideration to the appropriateness of the
going concern assumption, including cashflow forecasts through the going
concern period and beyond, planned capital expenditure and the principal risks
and uncertainties faced by the Group. This assessment also considered
various downside scenarios including oil and gas commodity prices and
production rates. Following this review, the Directors are satisfied that
the Group has sufficient resources to operate and meet its commitments as they
come due in the normal course of business for at least 12 months from the date
of these condensed consolidated interim financial statements. Accordingly,
the Directors continue to adopt the going concern basis for the preparation of
these condensed consolidated interim financial statements.
Declarations of the Board of Directors Concerning Accounting Policies
The Board of Directors of the Company confirms that, to the best of their
knowledge, the condensed consolidated interim financial statements together
with comparative figures have been prepared in accordance with applicable
accounting standards and give a true and fair view of the state of affairs and
the financial result of the Group for the period ended 31 March 2024.
The Financial Review in this report gives a true and fair view of the
situation on the reporting date and of the developments during the period
ended 31 March 2024, and include a description of the major risks and
uncertainties.
Serinus Energy plc
Condensed Consolidated Interim Statement of Comprehensive Loss
(US$ 000s, except per share amounts)
Three months ended
31 March
Note 2024 2023
Revenue 4,612 4,875
Cost of sales
Royalties (547) (520)
Windfall tax (70) (286)
Production expenses (2,165) (1,912)
Depletion and depreciation (800) (1,289)
Total cost of sales (3,582) (4,007)
Gross profit 1,030 868
Administrative expenses (905) (1,360)
Share-based payment expense - (1)
Total administrative expenses (905) (1,361)
Decommissioning provision recovery 11 17
Gain on sale of assets 37 -
Operating income (loss) 173 (476)
Finance expense (36) (421)
Net income (loss) before tax 137 (897)
Taxation expense (628) (372)
Income (loss) after taxation attributable to equity owners of the parent (491) (1,269)
Other comprehensive (loss) income
Other comprehensive (loss) income to be classified to profit and loss in
subsequent periods:
Foreign currency translation adjustment - (211)
Total comprehensive income (loss) for the period attributable to equity owners (491) (1,480)
of the parent
Income (loss) per share:
Basic 4 (0.00) (0.01)
Diluted 4 (0.00) (0.01)
The accompanying notes on pages 15 to 16 form part of the condensed
consolidated interim financial statements.
Serinus Energy plc
Condensed Consolidated Interim Statement of Financial Position
(US$ 000s, except per share amounts)
As at 31 March 31 December 2023
2024
Non-current assets
Property, plant and equipment 55,314 56,032
Exploration and evaluation assets 10,633 10,703
Right-of-use assets 839 498
Total non-current assets 66,786 67,233
Current assets
Restricted cash 1,160 1,171
Trade and other receivables 8,274 8,137
Product inventory 767 698
Cash and cash equivalents 553 1,335
Total current assets 10,754 11,341
Total assets 77,540 78,574
Equity
Share capital 401,426 401,426
Share-based payment reserve 25,560 25,560
Treasury shares (458) (458)
Accumulated deficit (399,869) (399,378)
Cumulative translation reserve (3,372) (3,372)
Total Equity 23,287 23,778
Liabilities
Non-current liabilities
Decommissioning provision 23,885 24,004
Deferred tax liability 12,200 12,125
Lease liabilities 720 424
Other provisions 1,317 1,317
Total non-current liabilities 38,122 37,870
Current liabilities
Current portion of decommissioning provision 6,748 6,720
Current portion of lease liabilities 153 137
Accounts payable and accrued liabilities 9,230 10,069
Total current liabilities 16,131 16,926
Total liabilities 54,253 54,796
Total liabilities and equity 77,540 78,574
The accompanying notes on pages 15 to 16 form part of the condensed
consolidated interim financial statements.
These condensed consolidated interim financial statements were approved by the
Board of Directors and authorised for issue on 10 May 2024.
Serinus Energy plc
Condensed Consolidated Interim Statement of Changes in Equity
(US$ 000s, except per share amounts)
Share capital Share-based payment reserve Treasury Shares Accumulated deficit Accumulated other comprehensive loss Total
Balance at 31 December 2022 401,426 25,557 (455) (386,356) (3,372) 36,800
Comprehensive income for the period - - - (1,269) - (1,269)
Other comprehensive loss for the period - - - - (211) (211)
Total comprehensive loss for the period - - (1,269) (211) (1,480)
Transactions with equity owners
Share-based payment expense - 1 - - - 1
Shares purchased to be held in Treasury - - (12) - - (12)
Balance at 31 March 2023 401,426 25,558 (467) (387,625) (3,583) 35,309
Balance at 31 December 2023 401,426 25,560 (458) (399,378) (3,372) 23,778
Comprehensive loss for the period - - - (491) - (491)
Other comprehensive loss for the period - - - - - -
Total comprehensive loss for the period - - (491) - (491)
Transactions with equity owners
Balance at 31 March 2024 401,426 25,560 (458) (399,869) (3,372) 23,287
The accompanying notes on pages 15 to 16 form part of the condensed
consolidated interim financial statements.
Serinus Energy plc
Condensed Consolidated Interim Statement of Cash Flows
(US$ 000s, except per share amounts)
Three months ended
31 March
2024 2023
Operating activities
Income (loss) for the period (491) (1,269)
Items not involving cash:
Depletion and depreciation 800 1,289
Accretion expense on decommissioning provision 425 387
Share-based payment expense - 1
Decommissioning provision (recovery) expense (11) (17)
Unrealised foreign exchange gain (122) -
Other income 15 (19)
Gain on disposal of assets (37) -
Taxation 628 372
Income taxes paid - (1,543)
Funds (used in) from operations 1,207 (799)
Changes in non-cash working capital 5 (1,471) 813
Cashflows from (used in) operating activities (264) 14
Financing activities
Lease payments (108) (49)
Shares purchased to be held in treasury - (12)
Cashflows used in financing activities (108) (61)
Investing activities
Capital expenditures 5 (387) (2,084)
Cashflows used in investing activities (387) (2,084)
Change in cash and cash equivalents (759) (2,131)
Cash and cash equivalents, beginning of period 1,335 4,854
Impact of foreign currency translation on cash (23) (3)
Cash and cash equivalents, end of period 553 2,720
The accompanying notes on pages 15 to 16 form part of the condensed
consolidated interim financial statements.
Serinus Energy plc
Notes to the Condensed Consolidated Interim Financial Statements
(US$ 000s, except per share amounts)
1. General information
Serinus Energy plc and its subsidiaries are principally engaged in the
exploration and development of oil and gas properties in Tunisia and
Romania. Serinus is incorporated under the Companies (Jersey) Law 1991.
The Group's head office and registered office is located at 2(nd) Floor, The
Le Gallais Building, 54 Bath Street, St. Helier, Jersey, JE1 1FW.
Serinus is a publicly listed company whose ordinary shares are traded under
the symbol "SENX" on AIM and "SEN" on the WSE.
2. Basis of presentation
The condensed consolidated interim financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS") and their
interpretations issued by the International Accounting Standards Board
("IASB") as adopted by the United Kingdom applied in accordance with the
provisions of the Companies (Jersey) Law 1991. The directors have elected to
prepare accounts under IFRS as adopted by the United Kingdom for all purposes
except for the financial statements for the purposes of the Warsaw Stock
Exchange filing which are prepared under European Union ("EU") endorsed
IFRS. No material differences have been noted between EU IFRS and UK IFRS
for the period ended 31 March 2024.
These condensed consolidated interim financial statements are expressed in
U.S. dollars unless otherwise indicated. All references to US$ are to U.S.
dollars. All financial information is rounded to the nearest thousands,
except per share amounts and when otherwise indicated.
Information about significant areas of estimation uncertainty and critical
judgements in applying accounting policies that have the most significant
effect on the amounts recognised in the condensed consolidated interim
financial statements are described in Note 5 to the consolidated financial
statements for the year ended 31 December 2023. There has been no change in
these areas during the three months ended 31 March 2024.
Going concern
The Group's business activities, together with the factors likely to affect
its future development and performance are set out in the Operational Update
and Outlook. The financial position of the Group is described in these
condensed consolidated interim financial statements and in the Financial
Review.
The Directors have given careful consideration to the appropriateness of the
going concern assumption, including cashflow forecasts through the going
concern period and beyond, planned capital expenditure and the principal risks
and uncertainties faced by the Group. This assessment also considered
various downside scenarios including oil and gas commodity prices and
production rates. Following this review, the Directors are satisfied that
the Group has sufficient resources to operate and meet its commitments as they
come due in the normal course of business for at least 12 months from the date
of these condensed consolidated interim financial statements. Accordingly,
the Directors continue to adopt the going concern basis for the preparation of
these condensed consolidated interim financial statements.
3. Significant accounting policies
The condensed consolidated interim financial statements have been prepared
following the same basis of measurement, accounting policies and methods of
computation as described in the notes to the consolidated financial statements
for the year ended 31 December 2023.
4. Earnings (Loss) per share
Period ended 31 March
(US$ 000s, except per share amounts) 2024 2023
Income (loss) for the period (491) (1,269)
Weighted average shares outstanding:
Basic and diluted shares (000s) 113,513 114,686
Income (loss) per share:
Basic and dilutive (0.00) (0.01)
In determining diluted net loss per share, the Group assumes that the proceeds
received from the exercise of "in-the-money" stock options are used to
repurchase ordinary shares at the average market price. Diluted loss per share
for the current and comparative periods is equivalent to basic loss per share
since the effect of all dilutive potential Ordinary Shares is anti-dilutive.
5. Supplemental Cash Flow Disclosure
Period ended 31 March
2024 2023
Cash provided by (used in):
Trade and other receivables (117) (1,402)
Product inventory (85) 127
Accounts payable and accrued liabilities (1,240) 2,082
Restricted cash (29) 7
Changes in non-cash working capital from operating activities (1,471) 813
The following table reconciles capital expenditures to the cash flow
statement:
Period ended 31 March
2024 2023
PP&E additions 308 2,373
E&E additions - -
Total capital additions 307 2,373
Changes in non-cash working capital from investing activities 80 (289)
Total capital expenditure 387 2,084
1 Shares held by Catherine Kempster (the spouse of Jon Kempster)
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