REG - Serinus Energy PLC - Q1 2025 Financial Results
14/05/2025 07:00
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RNS Number : 5140I Serinus Energy PLC 14 May 2025
14 May 2025
Press Release
Q1 2025 Financial Results
Jersey, Channel Islands, 14 May 2025 -- Serinus Energy plc ("Serinus" or the
"Company" or the "Group") (AIM:SENX, WSE:SEN) is pleased to announce its
Financial Results for the three months ended 31 March 2025.
Q1 2025 Highlights
Financial
· Revenue for the three months ended 31 March 2025 was $3.2 million
(31 March 2024 - $4.6 million)
· EBITDA for the three months ended 31 March 2025 was $0.1 million
(31 March 2024 - $0.9 million)
· Gross profit for the three months ended 31 March 2025 was $0.1
million (31 March 2024 - $1.0 million)
· Net loss for the three months ended 31 March 2025 was $0.9
million (31 March 2024 - $0.5 million)
· The Group realised a net price of $75.28/boe for the three months
ended 31 March 2025 (31 March 2024 - $80.24/boe), comprising:
o Realised oil price - $72.74/bbl (31 March 2024 - $84.27/bbl)
o Realised natural gas price - $14.10/Mcf (31 March 2024 - $10.99/Mcf)
· The Group's operating netback decreased for the three months
ended 31 March 2025 and was $24.60/boe (31 March 2024 - $33.04/boe) reflecting
lower realised oil prices and lower production volumes in Tunisia while
production in Romania remained stable, comprising:
o Tunisia operating netback - $27.29/boe (31 March 2024 - $40.16/boe)
o Romania operating netback - $1.52/boe (31 March 2024 - negative
$55.66/boe)
· Capital expenditures of $0.1 million for the three months ended
31 March 2025 (31 March 2024 - $0.3 million)
· On 9 January 2025, the Group held a General Meeting whereby
shareholders approved the allocation of new shares with 93.54% of shareholders
voting in favour of a placing of 26,841,141 new ordinary shares at a price of
2.5 pence per share raising gross proceeds of $0.8 million.
Operational
· On 12 February 2025, the Superior Court of Cassation and
Justice of Romania ruled in favour of Serinus Energy Romania vs. ANAF, in the
case of the rejected VAT refunds (refer Operational Update for Romania within
this Report)
· The court ordered ANAF to make payment of principle, interest
and penalties within 45 days of the ruling. ANAF has breached the ruling and
payment has yet to be received.
· Long lead items for the Sabria W-1 sidetrack have been ordered
and received in country. 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 of 37,758 bbls of Tunisian crude
oil in December 2024 at an average price of $74.19/bbl. Cash proceeds of $0.7
million were received in January 2025 (net of $2.1 million in monthly
prepayments received previously)
· The Group has scheduled the next lifting for July 2025
· The Moftinu gas field maintains stable production from one well
· Production for the quarter averaged 481 boe/d, comprising:
o Tunisia - 427 boe/d
o Romania - 54 boe/d
· The Group continued its excellent safety record with no Lost Time
Incidents in first quarter of 2025
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 could offer the
Company another Moftinu style shallow gas development.
Romania
In Romania the Group currently holds the 2,950 km(2) Satu Mare Concession.
The Satu Mare Concession area includes the Moftinu gas field which was brought
on production in April 2019 and has produced approximately 9.5 Bcf and $95.0
million of revenue to the end of March 2025. The Moftinu gas field is a
shallow gas field that has initial high production rates followed by natural
declines. While is nearing the end of its natural life, the field has
identified existing gas in uncompleted zones that can be completed and
produced with higher gas prices and reduced windfall tax.
The Satu Mare Concession, beyond the Moftinu gas field, contains multiple
high-potential exploration plays. The 2023 block-wide geological review
confirmed several proven hydrocarbon systems and productive trends, supported
by data from over 40 legacy wells and extensive seismic coverage. This
extensive evidence-based analysis allows the Group to identify a pathway
towards future exploration growth.
In October 2023, the Group secured a two-phase extension to the exploration
period of the Satu Mare Concession in Romania. The Moftinu gas field is now a
Commercial Area, while the rest remains under exploration. The mandatory first
phase runs for two years from 28 October 2023 and requires reprocessing 100 km
of legacy 2D seismic and acquiring and processing another 100 km of 2D
seismic. The optional second phase, starting 28 October 2025, lasts two years
and includes drilling one well, with no specified depth requirement.
On 12 February 2025, the Superior Court of Cassation and Justice of Romania
definitively ruled in favour of Serinus Energy Romania in its legal case
against the Romanian fiscal authority, Agenția Națională de Administrare
Fiscală ("ANAF"), ordering the refund of RON 8.3 million (approximately
US$1.7 million) in VAT for 2018 and 2019 tax years and RON 3.6 million
(approximately US$0.8 million) in interest and penalties, to be paid within 45
days. ANAF failed to comply and instead claimed a partial offset, alleging
Serinus owes RON 3.34 million (approximately US$0.7 million) of solidarity tax
retrospectively attributable to 2022 and RON 2.06 million (approximately
US$0.5 million) in penalties, despite the court decision containing no
provision for such offsets. The solidarity tax was ruled unconstitutional by
the Romanian Appeals Court in September 2024, with a final decision pending in
the Constitutional Court. Serinus has initiated litigation against ANAF and is
pursuing further legal options to enforce the court-ordered payment.
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 1.7% 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 are planned to 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. As discussed in the Financial Review, production at
Chouech Es Saida fell in February 2025 due to intake pressure fluctuations at
the main producing well but returned to normal in March 2025.
Corporate
On 24 March 2025, the Company announced initiation of a scheme of arrangement
(the "Scheme") under which Xtellus Capital Partners, Inc. ("Xtellus") will
acquire all outstanding share capital of the Company.
The Scheme is being implemented by means of a Court-sanctioned scheme of
arrangement under Article 125 of the Companies (Jersey) Law 1991 and is
subject to shareholder approval, and regulatory and court approvals. The
Scheme was approved at a General Meeting of shareholders on 1 May 2025, and
will now be followed by a court hearing on 15 May 2025 for final approval (see
Note 6 to the interim financial statements). Once approved the Company intends
to delist its shares from trading on AIM and the WSE.
Financial Review
Liquidity, Debt and Capital Resources
During the three months ended 31 March 2025 (the "period"), the Group invested
$0.1 million in capital expenditures before working capital adjustments (2024
- $0.3 million), with all spending in Tunisia and no capital investment in
Romania in either period.
The Group remains debt-free and continues to pursue opportunities to expand
and continue growing production within our existing resource base to deliver
shareholder returns.
(US$ 000s) 31 March 31 December 2024
Working Capital
2025
Current assets 9,558 8,558
Current liabilities (17,746) (17,890)
Working Capital (8,188) (9,332)
The working capital deficit at 31 March 2025 was $8.2 million (31 December
2024 - $9.3 million).
Current assets as at 31 March 2025 were $9.6 million (31 December 2024 - $8.6
million), an increase of $1.0 million. Current assets consist of:
· Cash and cash equivalents of $0.9 million (31 December 2024 -
$1.4 million)
· Restricted cash of $1.2 million (31 December 2024 - $1.1 million)
· Trade and other receivables of $6.9 million (31 December 2024 -
$5.4 million)
· Product inventory of $0.6 million (31 December 2024 - $0.7
million)
Current liabilities as at 31 March 2025 were $17.7 million (31 December 2024 -
$17.9 million), a decrease of $0.2 million. Current liabilities consist of:
· Accounts payable of $7.2 million (31 December 2024 - $7.4
million)
· Decommissioning provision of $9.6 million (31 December 2023 -
$9.4 million)
o Tunisia - $7.9 million (31 December 2024 - $7.7 million)
o Romania - $0.9 (31 December 2024 - $0.9 million)
o Canada - $0.8 million (31 December 2024 - $0.8 million) which is offset by
restricted cash in the amount of $1.2 million (31 December 2024 - $1.1
million) in current assets
· Income taxes payable of $0.7 (31 December 2024 - $0.9 million)
· Current portion of lease obligations of $0.2 million (31 December
202 - $0.2 million)
Non-current assets
Property, plant and equipment ("PP&E") decreased to $44.1 million (31
December 2024 - $44.4 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") decreased to $0.6
million (31 December 2024- $0.7 million) due to depreciation.
Funds from Operations
The Group uses funds from operations as a key performance indicator to measure
the ability of the Group to generate cash from operations to fund future
exploration and development activities. The following table is a
reconciliation of funds from operations to cash flow from operating
activities:
Period ended 31 March
(US$ 000s) 2025 2024
Cash flows from operations (1,139) (264)
Changes in non-cash working capital 2,798 1,471
Funds from (used in) operations 1,659 1,207
Funds from operations per share 0.01 0.01
During the three months ended 31 March 2025, Tunisia generated $1.7 million in
funds from operations (2024 - $2.4 million), while Romania used $0.2 million
in operations (2024 - $0.4 million) and recognised $0.8 million in interest
and penalties related to the delayed VAT refund, which remain outstanding as
of the date of this report. Including the non-cash working capital
adjustments, Romania's funds generated from operations totalled $0.6 million.
Funds used at the corporate level were $0.6 million (2024 - $0.8 million)
resulting in net funds from operations of $1.7 million (2024 - $1.2 million).
Production
Period ended 31 March 2025 Tunisia Romania Group %
Crude oil (bbl/d) 372 - 372 78%
Natural gas (Mcf/d) 334 325 659 22%
Condensate (bbl/d) - - -
Total production (boe/d) 427 54 481 100%
Period ended 31 March 2024 Tunisia Romania Group %
Crude oil (bbl/d) 494 - 494 78%
Natural gas (Mcf/d) 553 292 845 22%
Condensate (bbl/d) - - -
Total production (boe/d) 586 49 635 100%
For the three months ended 31 March 2025 production volumes were 481 boe/d, a
decrease of 154 boe/d against the comparative period (31 March 2024 - 635
boe/d).
Romania's production volumes were 54 boe/d in the period (31 March 2024 - 49
boe/d).
Tunisia's production volumes decreased to 427 boe/d against comparative period
(31 March 2024 - 586 boe/d) as a result of intake pressure fluctuation at the
main producer well in the Chouech es Saida field in February 2025 which
improved and returned to normal in March 2025. The Group's oil fields'
maintenance programme and on-going field management at both the Sabria and
Chouech es Saida oil fields aims to further optimise production.
Oil and Gas Revenue
(US$ 000s)
Period ended 31 March 2025 Tunisia Romania Group %
Oil revenue 2,425 - 2,425 76%
Natural gas revenue 360 407 767 24%
Condensate revenue - - - 0%
Total revenue 2,785 407 3,192 100%
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%
REALISED PRICE
Period ended 31 March 2025 Tunisia Romania Group
Oil ($/bbl) 72.74 - 72.74
Natural gas ($/Mcf) 11.97 16.74 14.10
Condensate ($/bbl) - - -
Average realised price ($/boe) 72.62 100.43 75.28
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
For the three months ended 31 March 2025, the Group generated revenue of $3.2
million, a decrease of $1.4 million against the comparative period (31 March
2024 - $4.6 million). The decrease is due to production decline in Tunisia and
a decrease in the average realised price to $75.28/boe (31 March 2024 -
$80.24/boe).
The Group's average realised oil price decreased by $11.53/bbl to $72.74/bbl
(31 March 2024 - $84.27/bbl), and average realised natural gas prices
increased by $3.11/Mcf to $14.10/Mcf (31 March 2024 - $10.99/Mcf).
Under the terms of the Sabria concession agreement the Group is required to
sell 20% of its annual crude oil production from the Sabria concession into
the local market, which is sold at an approximate 10% discount to the price
obtained on its other crude sales. The remaining crude oil production is
sold to the international market.
Royalties
Period ended 31 March
(US$ 000s) 2025 2024
Tunisia 323 536
Romania 16 11
Total 339 547
Total ($/boe) 8.00 9.52
Tunisia oil royalty (% of oil revenue) 11.6% 12.5%
Romania gas royalty (% of gas revenue) 4.0% 4.4%
Total (% of revenue) 10.6% 11.9%
For the three months ended 31 March 2025 royalties decreased to $0.3 million
while the Group's average royalty rate decreased to 10.6% (2024 - 11.9%).
In Romania, royalties on natural gas production are calculated using a
reference price set by the national authorities, rather than the actual
realised price received by the Group. During the first quarter of 2025,
reference prices remained above the Group's realised prices. Royalty rates are
determined on a sliding scale based on quarterly production volumes, ranging
from 4.5% to 15.0%. These rates apply to gross production volumes, and the
royalty is payable quarterly.
In Tunisia, royalties vary based on individual concession agreements. Sabria
royalty rates vary depending on a calculation of cumulative revenues, net of
taxes, as compared to cumulative investment in the concession, known as the "R
factor". As the R factor increases, so does the royalty percentage to a
maximum rate of 15%. During the first quarter of 2025, the royalty rate
remained unchanged in Sabria at 10% for oil and 8% for gas. Chouech Es Saida
royalty rates are flat at 15% for both oil and gas.
Production Expenses
Period ended 31 March
(US$ 000s) 2025 2024
Tunisia 1,416 1,689
Romania 384 475
Canada 10 1
Group 1,810 2,165
Tunisia production expense ($/boe) 36.91 31.75
Romania production expense ($/boe) 94.90 111.57
Total production expense ($/boe) 42.68 37.68
For the three months ended 31 March 2025 production expenses were $1.8
million, a decrease of $0.4 million against the comparative period (31 March
2024 - $2.2 million). Per unit production expenses increased by $5.00/boe to
$42.68/boe (31 March 2024 - $37.68/boe).
Tunisia's production expenses decreased by $0.3 million compared to the
comparative period of prior year and comprised $1.4 million (31 March 2024 -
$1.7 million), with per unit production expenses increasing to $36.91/boe
(2024 - $31.75/boe) which is consistent with decreased production.
Romania's production expense decreased to $0.4 million against the comparative
period (31 March 2024 - $0.5 million), with the per unit expenses decreasing
to $94.90/boe (2024 - $111.57/boe) driven by stable production from one well
in Moftinu gas field.
Canadian production expenses relate to the Sturgeon Lake assets, which are not
producing and are incurring minimal operating costs to maintain the property.
Operating Netback
Serinus uses operating netback as a key performance measure to evaluate
profitability of its operations in the context of prevailing market conditions
and to monitor performance trends across reporting periods. It is defined as
oil and gas revenues less direct costs consisting of royalties and production
expenses. Netback is not a standard measure under IFRS and therefore may not
be comparable to similar measures reported by other entities.
($/boe)
Period ended 31 March 2025 Tunisia Romania Group
Sales volume (boe/d) 427 54 481
Realised price 72.62 100.43 75.28
Royalties (8.42) (4.01) (8.00)
Production expense (36.91) (94.90) (42.68)
Operating netback 27.29 1.52 24.60
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
The Group's operating netback decreased to $24.60/boe (31 March 2024 -
$33.04/boe) due to lower realised oil prices and lower production volumes in
Tunisia.
The Group generated a gross profit of $0.1 million (31 March 2024 - $1.0
million) due to decreased production volumes in Tunisia and unfavourable oil
prices in the first quarter of 2025.
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 2025, the Group's EBITDA was
$0.1 million (31 March 2024 - $0.9 million).
Period ended 31 March
(US$ 000s) 2025 2024
Net loss (894) (491)
Finance costs, including accretion (213) 36
Depletion and amortization 770 800
Gain on disposal of right-of-use assets - (37)
Decommissioning provision recovery 193 (11)
Tax expense 191 628
EBITDA 47 925
Windfall Tax
Period ended 31 March
(US$ 000s) 2025 2024
Windfall tax 163 70
Windfall tax ($/Mcf - Romania gas) 6.68 2.64
Windfall tax ($/boe - Romania gas) 40.11 16.44
During first quarter of 2025, the Group incurred $0.2 million in Romanian
windfall taxes (2024 - $0.1 million). The increase is driven by a higher
average realised gas price of $16.74/Mcf compared to $9.74/Mcf in the same
period of prior year.
In Romania, the Group is subject to a windfall tax on natural gas production
when prices exceed 47.53 RON per MWh. Supplemental income is taxed at 60%
between 47.53 and 85.00 RON per MWh, and at 80% above 85.00 RON per MWh.
Deductible expenses in calculating the tax include royalties and capital
expenditures, with the latter limited to 30% of the supplemental income below
the 85.00 RON per MWh threshold.
Depletion and Depreciation
Period ended 31 March
(US$ 000s) 2025 2024
Tunisia 708 732
Romania 32 37
Corporate 30 31
Total 770 800
Tunisia ($/boe) 18.47 13.74
Romania ($/boe) 7.94 8.80
Total ($/boe) 18.16 13.92
For the three months ended 31 March 2025 depletion and depreciation expense
remained the same at $0.8 million (31 March 2024 - $0.8 million), with a per
unit increase of $4.24/boe to $18.16/boe (31 March 2024 - $13.92/boe). The
decrease is primarily due to lower production during the reporting quarter.
General and Administrative ("G&A") Expense
Period ended 31 March
(US$ 000s) 2025 2024
G&A expense 833 905
G&A expense ($/boe) 19.64 15.75
G&A costs decreased during the first quarter of 2025 to $0.8 million (31
March 2024 - $0.9 million), primarily due to lower personnel expenses, reduced
professional service fees, lower corporate insurance premiums, and the Group's
continued focus on cost control measures.
Share-Based Payment
Period ended 31 March
(US$ 000s) 2025 2024
Share-based payment - -
Share-based payment ($/boe) - -
No share-based payment expense was recognised in first quarter of 2025 (31
March 2024 - nil) since no options were granted during the period and those
options which are outstanding at 31 March 2024 to executive directors and
employees vested in prior periods.
Net Finance Expense/income
Period ended 31 March
(US$ 000s) 2025 2024
Interest on leases (23) (32)
Interest and penalties on late VAT refund 807 -
Accretion on decommissioning provision (342) (425)
Foreign exchange and other (229) 421
213 36
For the three months ended 31 March 2025, net finance expenses turned into a
net income of $0.2 million, compared to $0.04 million expense in the first
quarter of 2024, primarily due to interest and penalties recognised on the
delayed VAT refunds in Romania, partially offset by foreign exchange losses on
monetary assets and liabilities denominated in foreign currencies.
Taxation
For the three months ended 31 March 2025 tax expense was $0.2 million (31
March 2024 - $0.6 million). The change in income tax expense is due to
decreased 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 2,230,000 959,505 6,993,480
Non-Executive Directors:
Lukasz Redziniak - - 702,000
Jim Causgrove - - 290,000
2,230,000 959,505 7,985,480
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 29.32%
Lampe Conway LLP 8.73%
Michael Hennigan 7.31%
Quercus TFI SA 5.94%
Jeffery Auld 4.62%
Paul Brotherhood 3.81%
Spreadex LTD 3.12%
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 carefully assessed the appropriateness of the going concern
assumption, taking into account cash flow forecasts for the going concern
period and beyond, planned capital expenditure, and the principal risks and
uncertainties facing the Group. This evaluation also considered various
downside scenarios, including fluctuations in oil and gas commodity prices,
accelerated decommissioning, and production rates. Based on this review, the
Directors are confident that the Group has sufficient resources to operate and
meet its commitments in the normal course of business for at least 12 months
from the date of these condensed consolidated interim financial statements. In
the event of sustained oil price volatility, further delays in receiving the
anticipated VAT refund in Romania, or challenges in securing necessary capital
program funding, the Group will retain adequate resources and liquidity to
continue operations and meet its obligations for at least 12 months from the
date of these financial statements. Consequently, the Directors have concluded
that it is appropriate to adopt the going concern basis for the preparation of
these consolidated 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 2025.
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 2025, 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 2025 2024
Revenue 3,192 4,612
Cost of sales
Royalties (339) (547)
Windfall tax (163) (70)
Production expenses (1,810) (2,165)
Depletion and depreciation (770) (800)
Total cost of sales (3,082) (3,582)
Gross profit 110 1,030
Administrative expenses (833) (905)
Share-based payment expense - -
Total administrative expenses (833) (905)
Decommissioning provision recovery (193) 11
Gain on sale of assets - 37
Operating (loss) income (916) 173
Finance expense (594) (36)
Interest and penalties 807 -
Net (loss) income before tax (703) 137
Taxation expense (191) (628)
Loss after taxation attributable to equity owners of the parent (894) (491)
Other comprehensive income - -
Total comprehensive loss for the period attributable to equity owners of the (894) (491)
parent
Loss per share:
Basic 4 (0.01) (0.00)
Diluted 4 (0.01) (0.00)
The accompanying notes on pages 14 to 15 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 2024
2025
Non-current assets
Property, plant and equipment 44,099 44,441
Exploration and evaluation assets 10,662 10,666
Right-of-use assets 586 664
Total non-current assets 55,347 55,771
Current assets
Restricted cash 1,147 1,135
Trade and other receivables 6,931 5,402
Product inventory 595 653
Cash and cash equivalents 885 1,368
Total current assets 9,558 8,558
Total assets 64,905 64,329
Equity
Share capital 402,455 401,641
Share-based payment reserve 25,108 25,108
Treasury shares - -
Accumulated deficit (409,985) (409,091)
Cumulative translation reserve (3,372) (3,372)
Total Equity 14,206 14,286
Liabilities
Non-current liabilities
Decommissioning provision 18,909 18,251
Deferred tax liability 12,265 12,081
Lease liabilities 462 504
Other provisions 1,317 1,317
Total non-current liabilities 32,953 32,153
Current liabilities
Current portion of decommissioning provision 9,592 9,446
Current portion of lease liabilities 167 177
Accounts payable and accrued liabilities 7,987 8,267
Total current liabilities 17,746 17,890
Total liabilities 50,699 50,043
Total liabilities and equity 64,905 64,329
The accompanying notes on pages 14 to 15 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 13 May 2025.
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 2023 401,426 25,560 (458) (399,378) (3,372) 23,778
Comprehensive income for the period - - - (491) - (491)
Other comprehensive loss for the period - - - - - -
Total comprehensive loss for the period - - - (491) - (491)
Transactions with equity owners
Share-based payment expense - - - - - -
Balance at 31 March 2024 401,426 25,560 (458) (399,869) (3,372) 23,287
Balance at 31 December 2024 401,641 25,108 - (409,091) (3,372) 14,286
Comprehensive loss for the period - - - (894) - (894)
Other comprehensive loss for the period - - - - - -
Total comprehensive loss for the period - - (894) - (894)
Transactions with equity owners
Share issuance 814 - - - - 814
Balance at 31 March 2025 402,455 25,108 - (409,985) (3,372) 14,206
The accompanying notes on pages 14 to 15 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
2025 2024
Operating activities
Loss for the period (894) (491)
Items not involving cash:
Depletion and depreciation 770 800
Accretion expense on decommissioning provision 342 425
Share-based payment expense - -
Decommissioning provision expense (recovery) 193 (11)
Unrealised foreign exchange gain 42 (122)
Other income 10 15
Gain on disposal of assets - (37)
Taxation 1,356 628
Income taxes paid (160) -
Funds from operations 1,659 1,207
Changes in non-cash working capital 5 (2,798) (1,471)
Cashflows used in operating activities (1,139) (264)
Financing activities
Lease payments (84) (108)
Equity issuance 814 -
Cashflows from (used in) financing activities 730 (108)
Investing activities
Capital expenditures 5 (90) (387)
Cashflows used in investing activities (90) (387)
Change in cash and cash equivalents (499) (759)
Cash and cash equivalents, beginning of period 1,368 1,335
Impact of foreign currency translation on cash 16 (23)
Cash and cash equivalents, end of period 885 553
The accompanying notes on pages 14 to 15 form part of the condensed
consolidated interim financial statements.
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 2025.
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 2024. There has been no change in
these areas during the three months ended 31 March 2025.
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 2024.
4. Earnings (Loss) per share
Period ended 31 March
(US$ 000s, except per share amounts) 2025 2024
Income (loss) for the period (894) (491)
Weighted average shares outstanding:
Basic and diluted shares (000s) 143,806 113,513
Income (loss) per share:
Basic and dilutive (0.01) (0.00)
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
2025 2024
Cash provided by (used in):
Trade and other receivables (1,518) (117)
Product inventory 37 (85)
Accounts payable and accrued liabilities (1,298) (1,240)
Restricted cash (19) (29)
Changes in non-cash working capital from operating activities (2,798) (1,471)
The following table reconciles capital expenditures to the cash flow
statement:
Period ended 31 March
2025 2024
PP&E additions 89 308
E&E additions - -
Total capital additions 89 307
Changes in non-cash working capital from investing activities 1 80
Total capital expenditure 90 387
6. Events after the reporting period
During the Court Meeting and General Meeting (together the "Meetings") held on
1 May 2025, the requisite majorities of Serinus shareholders present and
voting (and entitled to vote) either in person or by proxy voted to approve
the Scheme at the Court Meeting and the Special Resolution in connection with
the implementation of the Scheme at the General Meeting. The Scheme is now
subject to final approval by the court scheduled on 15 May 2025, after which
the Company intends to delist its shares from trading on AIM and the WSE.
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