3rd Quarter Results
29 November 2021
Press Release
Interim Results for the nine months ended 30 September 2021
Jersey, Channel Islands, 29 November 2021 -- Serinus Energy plc ("Serinus" or the "Company") (AIM:SENX, WSE:SEN) announces the release of its interim results for the nine months ended 30 September 2021.
Financial
· Revenue for the nine months ended 30 September 2021 was $25.7 million (30 September 2020 - $18.2 million)
· The Company generated net income of $0.8 million (30 September 2020 - loss of $13.7 million)
· Funds from operations for the nine months ended 30 September 2021 was $7.8 million (30 September 2020 - $5.9 million)
· EBITDA for the nine months ended 30 September 2021 was $8.9 million (30 September 2020 - $6.4 million)
· Gross profit for the nine months ended 30 September 2021 was $4.4 million (30 September 2020 - gross loss $1.7 million)
· Commodity prices remain strong, with October average Brent price of $83.54/bbl and October average Day Ahead Romania BRM gas price of $30.34/Mcf. The Company realised a net price of $52.62/boe for the nine months ended 30 September 2021, comprising:
o Realised oil price - $61.69/bbl
o Realised natural gas price - $8.26/Mcf
· The Group's operating netback remained strong for the nine months ended 30 September 2021 and was $34.13/boe (30 September 2020 - $16.51/boe), comprising:
o Romania operating netback - $37.79/boe (30 September 2020 - $18.18/boe)
o Tunisia operating netback - $26.05/boe (30 September 2020 - $11.48/boe)
· Capital expenditures of $9.3 million (30 September 2020 - $3.7 million), comprising:
o Romania - $8.5 million
o Tunisia - $0.8 million
· Cash balance as at 30 September 2021 was $6.4 million
Operational
· On 23 August 2021 the Company announced that Mr. Stuart Morrison was appointed Chief Operating Officer, bringing over 30 years of operational oil and gas industry experience to the Company
· In Tunisia the Artificial Lift programme continues to be advanced with the first pump, destined to be installed in the Sabria-W1 well, to be delivered in the first quarter of 2022. Immediately upon receipt of the pump the Company will begin the workover activities for the installation of this pump
· Serinus has designed and commenced permitting for a new 2D seismic acquisition programme to support the drilling of up to three prospects adjacent to the Moftinu field. Subject to well permitting approvals, the Company intends to begin this multi-well drilling programme in the latter half of 2022
· Installation of compression on the Moftinu gas field commenced during the last week of October 2021, on the Moftinu-1003 well. It is expected that this and further compression will enhance production from current levels, mitigate production decline and extend field life
· On 07 October 2021 the Company announced that it had incorporated a new gas trading subsidiary, Serinus Energy Romania Trading S.r.l
· Sancrai-1 will remain suspended while analysis of the drilling results, petrophysics and seismic data continues. While this work is ongoing the Company will accelerate the drilling of three prospects adjacent to the Moftinu gas field
· Production for the period averaged 1,810 boe/d, comprising:
o Romania - 1,242 boe/d
o Tunisia - 568 boe/d
· Serinus has continued to operate safely and effectively through the COVID-19 pandemic, with the successful implementation of operational and monitoring protocols to ensure the health and safety of our employees
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 Jeffrey Auld, Chief Executive Officer Andrew Fairclough, Chief Financial Officer Calvin Brackman, Vice President, External Relations & Strategy |
+4 4 204 541 7859 |
|
|
|
|
A rden Partners plc (Nominated Adviser & Joint Broker) Paul Shackleton (Corporate Finance) Tim Dainton (Equity Sales) |
+44 207 614 5900 |
|
Shore Capital Stockbrokers Limited (Joint Broker) Toby Gibbs / John More (Corporate Advisory) George Fraser (Equity Sales) |
+44 207 408 4090 |
|
|
|
|
Camarco (Financial PR - London) Owen Roberts Phoebe Pugh |
+44 203 781 8334 |
|
|
|
|
TBT i Wspólnicy (Financial PR - Warsaw) Katarzyna Terej |
+48 602 214 353 |
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.
Third Quarter 2021 Highlights
Financial
· Revenue for the nine months ended 30 September 2021 was $25.7 million (30 September 2020 - $18.2 million)
· The Company generated net income of $0.8 million (30 September 2020 - loss of $13.7 million)
· Funds from operations for the nine months ended 30 September 2021 was $7.8 million (30 September 2020 - $5.9 million)
· EBITDA for the nine months ended 30 September 2021 was $8.9 million (30 September 2020 - $6.4 million)
· Gross profit for the nine months ended 30 September 2021 was $4.4 million (30 September 2020 - gross loss $1.7 million)
· Commodity prices remain strong, with October average Brent price of $83.54/bbl and October average Day Ahead Romania BRM gas price of $30.34/Mcf. The Company realised a net price of $52.62/boe for the nine months ended 30 September 2021, comprising:
o Realised oil price - $61.69/bbl
o Realised natural gas price - $8.26/Mcf
· The Group's operating netback remained strong for the nine months ended 30 September 2021 and was $34.13/boe (30 September 2020 - $16.51/boe), comprising:
o Romania operating netback - $37.79/boe (30 September 2020 - $18.18/boe)
o Tunisia operating netback - $26.05/boe (30 September 2020 - $11.48/boe)
· Capital expenditures of $9.3 million (30 September 2020 - $3.7 million), comprising:
o Romania - $8.5 million
o Tunisia - $0.8 million
· Cash balance as at 30 September 2021 was $6.4 million
Operational
· On 23 August 2021 the Company announced that Mr. Stuart Morrison was appointed Chief Operating Officer, bringing over 30 years of operational oil and gas industry experience to the Company
· In Tunisia the Artificial Lift programme continues to be advanced with the first pump, destined to be installed in the Sabria-W1 well, to be delivered in the first quarter of 2022. Immediately upon receipt of the pump the Company will begin the workover activities for the installation of this pump
· Serinus has designed and commenced permitting for a new 2D seismic acquisition programme to support the drilling of up to three prospects adjacent to the Moftinu field. Subject to well permitting approvals, the Company intends to begin this multi-well drilling programme in the latter half of 2022
· Installation of compression on the Moftinu gas field commenced during the last week of October 2021, on the Moftinu-1003 well. It is expected that this and further compression will enhance production from current levels, mitigate production decline and extend field life
· On 07 October 2021 the Company announced that it had incorporated a new gas trading subsidiary, Serinus Energy Romania Trading S.r.l
· Sancrai-1 will remain suspended while analysis of the drilling results, petrophysics and seismic data continues. While this work is ongoing the Company will accelerate the drilling of three prospects adjacent to the Moftinu gas field
· Production for the period averaged 1,810 boe/d, comprising:
o Romania - 1,242 boe/d
o Tunisia - 568 boe/d
· Serinus has continued to operate safely and effectively through the COVID-19 pandemic, with the successful implementation of operational and monitoring protocols to ensure the health and safety of our employees
Operational Update and outlook
Serinus Energy plc and its subsidiaries ("Serinus", the "Company" or the "Group") is an oil and gas exploration, appraisal and development company. The Group is the operator of all its assets and has operations in two business units: Romania and Tunisia.
Romania
The Company currently holds one large concession area (approximately 3,000km2), Satu Mare, located in a highly sought-after hydrocarbon province. The Moftinu Gas Project is what the Group hopes to be the first of many shallow gas developments. The concession is extensively covered by legacy 2D and 3D seismic and the Group considers the concession to have multiple sizable prospects available for further exploration.
The Company has completed all of its commitments under the third exploration phase, and has received an additional two-year evaluation phase on the Satu Mare Concession until 27 October 2023. The Company has agreed to the following work commitments over the term of this evaluation phase:
· Phase 1: From 28 October 2021 to 27 October 2022, the Company is required to reprocess 160.9 km 2D seismic in the Madaras area at an estimated cost of $100,000; and
· Phase 2: From 28 October 2022 to 27 October 2023, the Company is required to reprocess 30.1 km 2D seismic in the Santau-Nusfalau area at an estimated cost of $50,000.
Serinus has accelerated the design and permitting of additional 2D seismic lines of approximately 105 linear kilometres. The programme will compliment legacy 2D seismic which has already been reprocessed and will tie the acquired modern 2D with the existing 3D data-set. The Company intends to use this programme to refine and expedite the high-rank prospects adjacent to the Moftinu Gas Field. The targeted prospects will form the basis of a near-term multi-well drilling programme expected to commence in the latter half of 2022. Additional interpretation work is also being conducted on the Santau 3D area with a view to confirming drilling locations on prospects that will form the basis for future multi-well drilling campaigns.
During the nine months ended 30 September 2021, the Company successfully drilled, completed and initiated production from the M-1008 well, which was drilled to a total depth of 1,000 metres and flowed at 4.0 MMscf/d (approximately 667 boe/d).
On 15 July 2021 the Company announced that the Sancrai-1 well was a gas discovery and that drilling had been completed at a total planned drilling depth of 1,600 metres, five days ahead of schedule and under-budget. Continuous formation gas shows were recorded over 20 metres of gross pay over four sand intervals from the measured depths of 855 metres to 875 metres. At this drilling interval the measured total gas ranged from 5.5% to 11.1% with an estimated average porosity of between 23% and 27%. Open-hole petrophysical analysis undertaken during the drilling operations has further confirmed this gas-bearing Pliocene sand zone. The Company perforated the well in three zones to test the Pliocene sands and subsequently announced that the testing programme was unable to record the flow of gas. The Company is reviewing all of the drilling results, petrophysics, the 3D and 2D seismic, and all of the gas readings measured from the well and considering re-entry to stimulate the well. However, regulations in Romania required the Company to insert concrete plugs during suspension of the well. Further investigations into the Sancrai-1 well would require a drilling rig to drill out these plugs. The Company has determined that in the near term this cost would be better allocated to new wells.
On 07 October 2021 the Company announced that it had incorporated a new gas trading subsidiary, Serinus Energy Romania Trading S.r.l. The subsidiary will initially trade the Company's Romanian gas production not committed under its marketing agreement with Vitol into the Romanian market. Serinus Energy Romania Trading S.r.l has been created to allow our licensed gas traders to directly access the Romanian gas market and to capture the full value of gas prices in Romania.
The fabrication of the first compressor destined for the Moftinu Field was completed at the end of the period. Delivery and installation were conducted in October with installation planned to coincide with the routine maintenance shut-down on the Moftinu gas plant.
The Company has a deemed 100% working interest in the concession as its partner has defaulted on its obligations under the Joint Operating Agreement. The Company has filed a Request for Arbitration with the Secretariat of the International Court of Arbitration of the International Chamber of Commerce seeking a declaration affirming the Company's rightful claim of ownership of its defaulted partner's 40% participating interest and to compel transfer of that interest to the Company.
Tunisia
The Company currently holds five concession areas within Tunisia. Of these areas, three have discovered oil and gas reserves and are currently producing; Sabria, Chouech Es Saida, and Ech Chouech. The largest asset is the Sabria field, which is a large oilfield play that has been historically under-developed. Serinus considers this to be an excellent asset for remedial work to increase production and, on completion of ongoing reservoir studies, to conduct further development operations.
The first Artificial Lift programme will be implemented on the W-1 well in the Sabria field. The first submersible pump will be delivered in the first quarter of 2022. This is a significant achievement by our procurement team who have had to work hard given the effects of COVID-19 on supply chains and workplace restrictions.
Despite a more difficult operating environment in Tunisia as a result of the impact of COVID-19, the Company has conducted further workover operations in the Chouech Es Saida area to replace and standardise pumps in order to increase production.
Covid-19
The Company's top priority remains the health, safety and wellbeing of all our staff. The Group continues to monitor each jurisdiction closely and updates its working practices as local situations and rules evolve, following government recommendations such as enhanced sanitation of work sites, social distancing and wearing of masks. Our offices in London and Calgary are currently open and working in compliance with local recommendations, however in both Romania and Tunisia, recent increases in the infection rate and more limited vaccination coverage has resulted in a return to more stringent measures and routines to ensure a safe working environment for staff. Existing operations have remained in production.
Financial Review
Liquidity, Debt and Capital Resources
During the nine months ended 30 September 2021, the Company invested a total of $9.3 million (2020 - $3.7 million) on capital expenditures before working capital adjustments. In Romania the Group invested $8.5 million (2020 - $2.6 million) on the drilling, completion and tie-in of the M-1008 well and the drilling and completing of the Sancrai-1 exploration well. In Tunisia, the Company invested $0.8 million (2020 - $1.1 million) completing workovers on wells to enhance production.
The Company's funds from operations for the nine months ended 30 September 2021 was $7.8 million (2020 - $5.9 million). Including changes in non-cash working capital, the cash flow generated from operating activities in 2021 was $10.5 million (2020 - $4.3 million). The Company continues to be in in a strong position to expand and continue growing production within our existing resource base. The Company is debt-free and has adequate resources available to deploy capital into both operating segments to deliver growth and shareholder returns.
(US$ 000s) | 30 September 2021 | 31 December 2020 |
Current assets | 13,752 | 16,037 |
Current liabilities | (21,851) | (22,236) |
Working Capital deficit | (8,099) | (6,199) |
The working capital deficit at 30 September 2021 was $8.1 million (31 December 2020 - $6.2 million). The increase in working capital deficit is primarily a result of capital expenditures in the period offset by funds from operations.
Current assets as at 30 September 2021 were $13.8 million (31 December 2020 - $16.0 million), a decrease of $2.3 million. Current assets consist of:
· Cash and cash equivalents of $6.4 million (31 December 2020 - $6.0 million).
· Restricted cash of $1.2 million (31 December 2020 - $1.2 million).
· Trade and other receivables of $6.2 million (31 December 2020 - $8.9 million).
Current liabilities as at 30 September 2021 were $21.9 million (31 December 2020 - $22.2 million), a decrease of $0.4 million. Current liabilities consist of:
· Accounts payable of $13.8 million (31 December 2020 - $14.3 million) which includes $6.0 million (31 December 2020 - $6.0 million) related to historic work commitments in Brunei.
· Decommissioning provision of $6.8 million (31 December 2020 - $7.1 million).
o Brunei - $1.8 million (31 December 2020 - $1.8 million).
o Canada - $1.0 million (31 December 2020 - $1.0 million) which is offset by restricted cash in the amount of $1.2 million (31 December 2020 - $1.2 million) in current assets.
o Romania - $0.1 million (31 December 2020 - $0.6 million).
o Tunisia - $3.9 million (31 December 2020 - $3.7 million).
· Income taxes payable of $1.1 million (31 December 2020 - $0.6 million).
· Current portion of lease obligations of $0.2 million (31 December 2020 - $0.2 million).
Non-current assets
Property, plant and equipment ("PPE") decreased to $73.7 million (31 December 2020 - $77.8 million), primarily due to depletion expense in the period of $8.1 million, partially offset by capital expenditures in PPE of $4.6 million. Exploration and evaluation assets ("E&E") increased to $5.0 million (31 December 2020 - $0.01 million), primarily due to expenditures incurred on the Sancrai-1 well.
Financial Review - Nine months ended 30 September 2021
Funds from Operations
The Group uses funds from operations as a key performance indicator to measure the ability of the Group to generate cash from operations to fund future exploration and development activities. The following table is a reconciliation of funds from operations to cash flow from operating activities:
|
|
Period ended 30 September |
|
|
(US$ 000s) |
2021 |
2020 |
|
Cash flow from operations |
10,464 |
4,326 |
|
Changes in non-cash working capital |
(2,636) |
1,603 |
|
Funds from operations |
7,828 |
5,929 |
|
Funds from operations per share |
0.01 |
0.02 |
Romania generated funds from operations of $8.3 million (2020 - $8.0 million) and Tunisia generated $2.8 million (2020 - $0.5 million). Funds used at the Corporate level were $3.3 million (2020 - $2.6 million) resulting in net funds from operations of $7.8 million (2020 - $5.9 million).
Production
|
Period ended 30 September 2021 |
Tunisia |
Romania |
Group |
% |
|
Crude oil (bbl/d) |
465 |
- |
465 |
25% |
|
Natural gas (Mcf/d) |
618 |
7,392 |
8,010 |
74% |
|
Condensate (bbl/d) |
- |
10 |
10 |
1% |
|
Total production (boe/d) |
568 |
1,242 |
1,810 |
100% |
|
|
|
|
|
|
|
Period ended 30 September 2020 |
|
|
|
|
|
Crude oil (bbl/d) |
465 |
- |
465 |
19% |
|
Natural gas (Mcf/d) |
659 |
10,965 |
11,624 |
80% |
|
Condensate (bbl/d) |
- |
14 |
14 |
1% |
|
Total production (boe/d) |
574 |
1,841 |
2,415 |
100% |
During the nine months ended 30 September 2021 production volumes decreased by 605 boe/d (25%) to 1,810 boe/d (2020 - 2,415 boe/d). The Company's production volumes reduced through natural well declines as well as COVID-related workover delays.
Romania's production volumes decreased by 599 boe/d (33%) to 1,242 boe/d (2020 - 1,841 boe/d) primarily due to natural well declines. The introduction of the first compressor onto Moftinu-1003 at the end of October 2021 , together with compression on further wells, is expected to significantly increase the ultimate recoverable gas from the Moftinu field.
Tunisia's production volumes decreased by 6 boe/d (1%) to 568 boe/d (2020 - 574 boe/d). The Company has experienced workover delays in Chouech due to COVID-related restrictions, while production in Chouech has increased following completion of workover projects at the end of 2020. The first Artificial Lift programme will be implemented on the W-1 well in the Sabria field. The first submersible pump will be delivered in the first quarter of 2022. Installation will begin immediately on receipt of the pump.
Oil and Gas Revenue
|
(US$ 000s) |
|
|
|
|
|||
|
Period ended 30 September 2021 |
Tunisia |
Romania |
Group |
% |
|||
|
Oil revenue |
7,473 |
- |
7,473 |
29% |
|||
|
Natural gas revenue |
1,482 |
16,581 |
18,063 |
70% |
|||
|
Condensate revenue |
- |
162 |
162 |
1% |
|||
|
Total revenue |
8,955 |
16,743 |
25,698 |
100% |
|||
|
|
|
|
|
|
|||
|
Period ended 30 September 2020 |
|
|
|
|
|||
|
Oil revenue |
4,418 |
- |
4,418 |
24% |
|||
|
Natural gas revenue |
1,004 |
12,623 |
13,627 |
75% |
|||
|
Condensate revenue |
- |
119 |
119 |
1% |
|||
|
Total revenue |
5,422 |
12,742 |
18,164 |
100% |
|||
|
REALISED PRICE [1] |
|
|
|
||||
|
Period ended 30 September 2021 |
Tunisia |
Romania |
Group |
||||
|
Oil ($/bbl) |
61.69 |
- |
61.69 |
||||
|
Natural gas ($/Mcf) |
8.79 |
8.22 |
8.26 |
||||
|
Condensate ($/bbl) |
- |
57.72 |
57.72 |
||||
|
Average realised price ($/boe) |
60.01 |
49.37 |
52.62 |
||||
|
|
|
|
|
||||
|
Period ended 30 September 2020 |
|
|
|
||||
|
Oil ($/bbl) |
34.81 |
- |
34.81 |
||||
|
Natural gas ($/Mcf) |
5.55 |
4.20 |
4.28 |
||||
|
Condensate ($/bbl) |
- |
31.51 |
31.51 |
||||
|
Average realised price ($/boe) |
34.52 |
25.25 |
27.45 |
||||
During the nine months ended 30 September 2021 revenue increased by $7.5 million (41%) to $25.7 million (2020 - $18.2 million) as the Group saw the average realised price increase by $25.17/boe (92%) to $52.62/boe (2020 - $27.45/boe).
The Group's average realised oil price increased by $26.88/bbl (77%) to $61.69/bbl (2020 - $34.81/bbl), and average realised natural gas prices increased by $3.98/Mcf (93%) to $8.26/Mcf (2020 - $4.28/Mcf).
Under the terms of the Sabria Concession Agreement the Group is required to sell 20% of its annual crude oil production from the Sabria concession into the local market, which is sold at an approximate 10% discount to the price obtained on its other crude sales. The remaining crude oil production was sold to the international market.
Royalties
|
|
Period ended 30 September |
|
|
(US$ 000s) |
2021 |
2020 |
|
Tunisia |
1,198 |
646 |
|
Romania |
1,282 |
661 |
|
Total |
2,480 |
1,307 |
|
Total ($/boe) |
5.08 |
1.98 |
|
Tunisia (% of revenue) |
13.4% |
11.9% |
|
Romania (% of revenue) |
7.7% |
5.2% |
|
Total (% of revenue) |
9.7% |
7.2% |
During the nine months ended 30 September 2021 royalties increased by $1.2 million (90%) to $2.5 million (2020 - $1.3 million) while the Group's royalty rate increased to 9.7% (2020 - 7.2%). The increase in the Romanian royalties is related to the royalty reference price exceeding the realised price, compared to the comparative period when the realised price exceeded the reference price. Within the Tunisian royalties is a historic penalty for delayed gas royalty payments of $0.1 million (2020 - $nil).
Currently in Romania, the Company is incurring a 7.5% royalty for gas and 3.5% royalty for condensate. The royalty is calculated using a reference price that is set by the Romanian authorities and not the realised price to the Company. Romanian royalty rates vary based on the level of production during the quarter. Natural gas royalty rates range from 3.5% to 13.0% and condensate royalty rates range from 3.5% to 13.5%.
In Tunisia, royalties vary based on individual concession agreements. Sabria royalty rates vary depending on a calculation of cumulative revenues, net of taxes, as compared to cumulative investment in the concession, known as the "R factor". As the R factor increases, so does the royalty percentage to a maximum rate of 15%. During 2021, the royalty rate remained unchanged in Sabria at 10% for oil and 8% for gas. Chouech Es Saida and Ech Chouech royalty rates are flat at 15% for both oil and gas.
Production Expenses
| Period ended 30 September | |
(US$ 000s) | 2021 | 2020 |
Tunisia | 3,870 | 2,972 |
Romania | 2,647 | 2,909 |
Canada | 34 | 48 |
Group | 6,551 | 5,929 |
|
|
|
Tunisia production expense ($/boe) | 25.93 | 18.92 |
Romania production expense ($/boe) | 7.80 | 5.76 |
Total production expense ($/boe) | 13.41 | 8.96 |
During the nine months ended 30 September 2021 production expenses increased by $0.6 million (10%) to $6.6 million (2020 - $5.9 million), being an increase of $4.45/boe (50%) to $13.41/boe (2020 - $8.96/boe). The increase in costs during the period is the result of additional workovers being completed in Tunisia and $0.3 million (2020 - $nil) of historic mining taxes related to Sanrhar and Zinnia.
Tunisia's production expenses increased by $0.9 million (30%) to $3.9 million (2020 - $3.0 million), being an increase of $7.01/boe (37%) to $25.93/boe (2020 - $18.92/boe). The increase is due to workover programs to increase production and included historic mining taxes of $0.3 million related to Sanrhar and Zinnia.
Romania's overall production expenses decreased by $0.3 million (9%) to $2.6 million (2020 - $2.9 million), being an increase of $2.04/boe (35%) to $7.80/boe (2020 - $5.76/boe). The change in production costs are the result of decreased production, while the Company continues to focus on cost control measures within Romania.
Canada production expenses relate to the Sturgeon Lake assets, which are not producing and are incurring minimal operating costs to maintain the property.
Operating Netback
Serinus uses operating netback as a key performance indicator to assist management in understanding Serinus' profitability relative to current market conditions and as an analytical tool to benchmark changes in operational performance against prior periods. Operating netback consists of petroleum and natural gas revenues less direct costs consisting of royalties and production expenses. Netback is not a standard measure under IFRS and therefore may not be comparable to similar measures reported by other entities.
($/boe) |
|
|
|
Period ended 30 September 2021 | Tunisia | Romania | Group |
Production volume (boe/d) | 568 | 1,242 | 1,810 |
Realised price | 60.01 | 49.37 | 52.62 |
Royalties | (8.03) | (3.78) | (5.08) |
Production expense | (25.93) | (7.80) | (13.41) |
Operating netback | 26.05 | 37.79 | 34.13 |
|
|
|
|
Period ended 30 September 2020 |
|
|
|
Production volume (boe/d) | 574 | 1,841 | 2,415 |
Realised price | 34.52 | 25.25 | 27.45 |
Royalties | (4.12) | (1.31) | (1.98) |
Production expense | (18.92) | (5.76) | (8.96) |
Operating netback | 11.48 | 18.18 | 16.51 |
During the nine months ended 30 September 2021 the Group's operating netback increased by $17.62/boe (107%) to $34.13/boe (2020 - $16.51/boe). The increase is due to increased realised prices partially offset by increased royalties as well as increased production expenses in Tunisia. The Company also realised an increase in gross profit of $6.1 million to $4.4 million (2020 gross loss - $1.7 million), largely due to a significant increase in the Company's netbacks as well as a decrease to depletion as described below.
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. During the nine months ended 30 September 2021, the Group's EBITDA increased by $2.5 million to $8.9 million (2020 - $6.4 million). The increase is mainly due to higher netbacks in the current period.
Windfall Tax
| Period ended 30 September | |
(US$ 000s) | 2021 | 2020 |
Windfall tax | 4,190 | 1,152 |
Windfall tax ($/Mcf - Romania gas) | 2.08 | 0.38 |
Windfall tax ($/boe - Romania gas) | 12.46 | 2.30 |
During the nine months ended 30 September 2021 windfall taxes increased by $3.0 million (264%) to $4.2 million (2020 - $1.2 million). This increase is directly related to higher realized gas prices which increased from $4.20/Mcf to $8.22/Mcf.
In Romania, the Group is subject to a windfall tax on its natural gas production which is applied to supplemental income once natural gas prices exceed 47.53 RON/Mwh. This supplemental income is taxed at a rate of 60% between 47.53 RON/Mwh and 85.00 RON/Mwh and at a rate of 80% above 85.00 RON/Mwh. Expenses deductible in the calculation of the windfall tax include royalties and capital expenditures limited to 30% of the supplemental income below the 85.00 RON/Mwh threshold.
Depletion and Depreciation
| Period ended 30 September | |
(US$ 000s) | 2021 | 2020 |
Tunisia | 2,801 | 2,387 |
Romania | 5,153 | 8,609 |
Corporate | 112 | 514 |
Total | 8,066 | 11,510 |
|
|
|
Tunisia ($/boe) | 18.77 | 15.20 |
Romania ($/boe) | 15.19 | 17.06 |
Total ($/boe) | 16.52 | 17.39 |
During the nine months ended 30 September 2021 depletion and depreciation expense decreased by $3.4 million (30%) to $8.1 million (2020 - $11.5 million), being a decrease of $0.87/boe (5%) to $16.52/boe (2020 - $17.39/boe). The decrease is primarily due to a lower depletable base on the Group's assets and lower production during the period.
General and Administrative ("G&A") Expense
| Period ended 30 September | |
(US$ 000s) | 2021 | 2020 |
G&A expense | 3,180 | 2,526 |
G&A expense ($/boe) | 6.49 | 3.82 |
During the nine months ended 30 September 2021 G&A expenses increased by $0.7 million (26%) to $3.2 million (2020 - $2.5 million), being an increase of $2.67/boe (70%) to $6.52/boe (2020 - $3.82/boe) due to higher compliance expenses and impact of foreign exchange rates in the current period.
Share-Based Payment
| Period ended 30 September | |
(US$ 000s) | 2021 | 2020 |
Share-based payment | 119 | 360 |
Share-based payment ($/boe) | 0.24 | 0.54 |
During the nine months ended 30 September 2021 share-based compensation decreased to $0.1 million (2020 - $0.4 million) due to the forfeiture of stock options during the period.
Net Finance Expense
| Period ended 30 September | |
(US$ 000s) | 2021 | 2020 |
Interest expense on long-term debt | - | 2,270 |
Amortization of debt costs | - | 87 |
Amortization of debt modification | - | 192 |
Interest on leases | 41 | 72 |
Accretion on decommissioning provision | 255 | 504 |
Foreign exchange and other | 16 | (10) |
| 312 | 3,115 |
During the nine months ended 30 September 2021 net finance expenses decreased by $2.8 million (90%) to $0.3 million (2020 - $3.1 million). This decrease is directly attributed to the recapitalization of the Company in December 2020, resulting in the Company becoming debt-free. Accretion on decommissioning provision decreased due to the lower discount rates during the period.
Taxation
During the nine months ended 30 September 2021 tax recovery was $0.1 million (2020 - $1.7 million). The decrease in the tax recovery is directly related to additional taxable income in Tunisia during the period.
Share Data
As at the date of issuing this report, the following are the Directors stock options outstanding, LTIP awards, and shares owned up to the date of this report.
| Stock Options | LTIP Awards | Shares |
Executive Directors: |
|
|
|
Jeffrey Auld | 26,800,000 | 13,000,000 | 3,506,752 |
Andrew Fairclough | 1,750,000 | 7,000,000 | 1,080,533 |
|
|
|
|
Non-Executive Directors: |
|
|
|
Jim Causgrove | 100,000 | - | 400,000 |
Lukasz Redziniak | - | - | 720,000 |
Jon Kempster [2] | - | - | 602,607 |
| 28,650,000 | 20,000,000 | 5,402,921 |
As of the date of issuing this report, management is aware of the following shareholders holding more than 5% of the ordinary shares of the Group, as reported by the shareholders to the Group: Richard Sneller 11.27%, European Bank for Reconstruction and Development 9.90%, and Quercus TFI SA 7.06%.
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.
Foreign Currency Translation
Foreign currency translation occurs from the revaluation from fluctuations in the foreign exchange rates in entities with a different functional currency than the reporting currency (USD). The revaluation of the condensed consolidated interim statement of financial position to the period-end rates resulted in a loss of $1.8 million (2020 - gain of $0.2 million) through Other comprehensive gain (loss).
Going Concern
These condensed consolidated interim financial statements have been prepared on a going concern basis.
In December 2020 the Group retired $33.0 million of outstanding debt, leaving it debt-free and therefore able to direct its cashflow into operational activities. The Group meets its day-to-day working capital requirements from net operating cash flows, cash balances and equity. As at 31 October 2021 the group had cash balances of $6.8 million.
These condensed consolidated interim financial statements have been prepared on a going concern basis, which assumes that Serinus will continue its operations for the foreseeable future and will be able to realise its assets and discharge its liabilities and commitments in the normal course of operations. In assessing the Group's ability to continue as a going concern, the Directors have prepared a base case cash flow forecast under which the Group will have sufficient liquidity for not less than 12 months from the date of approval of these condensed consolidated interim financial statements.
Key inputs in the cashflow forecast include commodity price assumptions, capital expenditures, operating costs and operational performance for each business unit based on the Group's budget as approved by the board of directors. In approving the Group's budget, the Directors have considered the impact of the COVID-19 pandemic on global economic activity, demand for hydrocarbons and the Group's ability to maintain its operations. The Directors have challenged the underlying assumptions incorporated into the budget to satisfy themselves that these represent a robust basis for the base case cash flow forecast and believe the most significant factor that may impact the cashflows in the going concern period under review is the commodity price. The cashflow model has been stressed with a downside scenario incorporating a 25% reduction to the base case commodity price assumptions throughout the forecast period. In doing so the Directors have considered the Group's flexibility as to the timing of its commitment capital, the ability to manage the timing of its discretionary capital expenditure and its operating costs, and, in any reasonable scenario, continue to believe that the Group would have sufficient liquidity for at least the next 12 months.
At 30 September 2021, the Group had a working capital deficit of $8.1 million, however the Directors have considered the circumstances, current status and practical realisations of $11.7 million of current liabilities that relate to long-term historic liabilities and based on this assessment do not believe that these will become due in the going concern period under review.
Therefore, the Directors continue to believe that the Group will have sufficient liquidity to discharge its liabilities in the normal course of business for not less than 12 months from the date of approval of these condensed consolidated interim financial statements. On that basis, the Directors consider it appropriate to prepare the condensed consolidated interim financial statements on a going concern basis.
Declarations of the Board of Directors Concerning Accounting Policies
The Board of Directors of the Company confirms that, to the best of their knowledge, the interim condensed consolidated financial statements together with comparative figures have been prepared in accordance with applicable accounting standards and give a true and fair view of the state of affairs and the financial result of the Group for the period ended 30 September 2021.
The Financial Review in this report gives a true and fair view of the situation on the reporting date and of the developments during the period ended 30 September 2021, and include a description of the major risks and uncertainties.
Serinus Energy plc
Condensed Consolidated Interim Statement of Financial Position
(US$ 000s, except per share amounts)
|
|
|
Nine months ended 30 September |
|
|
|
Note |
2021 |
2020 |
|
|
|
|
|
|
Revenue |
|
25,698 |
18,164 |
|
|
|
|
|
|
Cost of sales |
|
|
|
|
Royalties |
|
(2,480) |
(1,307) |
|
Windfall tax |
|
(4,190) |
(1,152) |
|
Production expenses |
|
(6,551) |
(5,929) |
|
Depletion and depreciation |
|
(8,066) |
(11,510) |
|
Total cost of sales |
|
(21,287) |
(19,898) |
|
|
|
|
|
|
Gross profit (loss) |
|
4,411 |
(1,734) |
|
|
|
|
|
|
Administrative expenses |
|
(3,180) |
(2,526) |
|
Share-based payment expense |
|
(119) |
(360) |
|
Total administrative expenses |
|
(3,299) |
(2,886) |
|
|
|
|
|
|
Decommissioning provision expense |
|
(18) |
- |
|
Impairment expense |
4 |
- |
(9,600) |
|
Release of provision |
5 |
- |
1,905 |
|
Operating income (loss) |
|
1,094 |
(12,315) |
|
|
|
|
|
|
Finance expense |
|
(312) |
(3,115) |
|
Net income (loss) before tax |
|
782 |
(15,430) |
|
|
|
|
|
|
Taxation recovery |
|
54 |
1,686 |
|
Income (loss) after taxation attributable to equity owners of the parent |
|
836 |
(13,744) |
|
|
|
|
|
|
Other comprehensive (loss) income |
|
|
|
|
Other comprehensive (loss) income to be classified to profit and loss in subsequent periods: |
|
|
|
|
Foreign currency translation adjustment |
|
(1,828) |
198 |
|
Total comprehensive loss for the period attributable to equity owners of the parent |
|
(992) |
(13,546) |
|
|
|
|
|
|
Income (loss) per share: |
|
|
|
|
Basic |
6 |
0.00 |
(0.06) |
|
Diluted |
6 |
0.00 |
(0.06) |
The accompanying notes on pages 15 to 17 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 |
|
30 September 2021 |
31 December 2020 |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
4 |
73,660 |
77,799 |
|
Exploration and evaluation assets |
|
4,989 |
14 |
|
Right-of-use assets |
|
397 |
512 |
|
Total non-current assets |
|
79,046 |
78,325 |
|
|
|
|
|
|
Current assets |
|
|
|
|
Restricted cash |
|
1,153 |
1,159 |
|
Trade and other receivables |
|
6,230 |
8,876 |
|
Cash and cash equivalents |
|
6,369 |
6,002 |
|
Total current assets |
|
13,752 |
16,037 |
|
Total assets |
|
92,798 |
94,362 |
|
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
|
401,426 |
401,426 |
|
Share-based payment reserve |
|
25,296 |
25,177 |
|
Warrants |
|
97 |
97 |
|
Accumulated deficit |
|
(395,574) |
(396,410) |
|
Cumulative translation reserve |
|
(739) |
1,089 |
|
Total Equity |
|
30,506 |
31,379 |
|
|
|
|
|
|
Liabilities |
|
|
|
|
Non-current liabilities |
|
|
|
|
Decommissioning provision |
|
28,398 |
26,950 |
|
Deferred tax liability |
|
10,290 |
11,976 |
|
Lease liabilities |
|
284 |
422 |
|
Other provisions |
|
1,469 |
1,399 |
|
Total non-current liabilities |
|
40,441 |
40,747 |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Current portion of decommissioning provision |
|
6,847 |
7,124 |
|
Current portion of lease liabilities |
|
179 |
164 |
|
Accounts payable and accrued liabilities |
|
14,825 |
14,948 |
|
Total current liabilities |
|
21,851 |
22,236 |
|
Total liabilities |
|
62,292 |
62,983 |
|
Total liabilities and equity |
|
92,798 |
94,362 |
The accompanying notes on pages 15 to 17 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 26 November 2021.
Serinus Energy plc
Condensed Consolidated Interim Statement of Changes in Equity
(US$ 000s, except per share amounts)
|
|
Share capital |
Share-based payment reserve |
Warrants |
Accumulated deficit |
Cumulative translation reserve |
Total |
|
Balance at 31 December 2019 |
377,942 |
23,835 |
97 |
(387,113) |
(243) |
14,518 |
|
Comprehensive loss for the period |
- |
- |
- |
(13,744) |
- |
(13,744) |
|
Other comprehensive income for the period |
- |
- |
- |
- |
198 |
198 |
|
Transactions with equity owners |
|
|
|
|
|
|
|
Share-based payment expense |
76 |
284 |
- |
- |
- |
360 |
|
Balance at 30 September 2020 |
378,018 |
24,119 |
97 |
(400,857) |
(45) |
1,332 |
|
|
|
|
|
|
|
|
|
Balance at 31 December 2020 |
401,426 |
25,177 |
97 |
(396,410) |
1,089 |
31,379 |
|
Comprehensive income for the period |
- |
- |
- |
836 |
- |
836 |
|
Other comprehensive loss for the period |
- |
- |
- |
- |
(1,828) |
(1,828) |
|
Transactions with equity owners |
|
|
|
|
|
|
|
Share-based payment expense |
- |
119 |
- |
- |
- |
119 |
|
Balance at 30 September 2021 |
401,426 |
25,296 |
97 |
(395,574) |
(739) |
30,506 |
The accompanying notes on pages 15 to 17 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)
|
|
|
Nine months ended 30 September |
|
|
|
|
2021 |
2020 |
|
|
|
|
|
|
Operating activities |
|
|
|
|
Income (loss) for the period |
|
836 |
(13,744) |
|
Items not involving cash: |
|
|
|
|
Depletion and depreciation |
|
8,066 |
11,510 |
|
Accretion expense on decommissioning provision |
|
255 |
504 |
|
Share-based payment expense |
|
119 |
360 |
|
Change in other provisions |
|
70 |
- |
|
Decommissioning provision expense |
|
18 |
- |
|
Impairment expense |
4 |
- |
9,600 |
|
Release of provision |
5 |
- |
(1,905) |
|
Interest expense |
|
- |
2,528 |
|
Other income |
|
(5) |
(52) |
|
Unrealised foreign exchange gain |
|
(23) |
(24) |
|
Taxation recovery |
|
(54) |
(1,686) |
|
Decommissioning expenditures |
|
(322) |
- |
|
Income taxes paid |
|
(1,132) |
(1,162) |
|
Funds from operations |
|
7,828 |
5,929 |
|
Changes in non-cash working capital |
7 |
2,636 |
(1,603) |
|
Cashflows from operating activities |
|
10,464 |
4,326 |
|
|
|
|
|
|
Financing activities |
|
|
|
|
Lease payments |
|
(217) |
(434) |
|
Repayment of long-term debt |
|
- |
(2,000) |
|
Cashflows used in financing activities |
|
(217) |
(2,434) |
|
|
|
|
|
|
Investing activities |
|
|
|
|
Capital expenditures |
7 |
(9,865) |
(2,983) |
|
Proceeds on disposition of property, plant and equipment |
|
8 |
23 |
|
Cashflows used in investing activities |
|
(9,857) |
(2,960) |
|
|
|
|
|
|
Impact of foreign currency translation on cash |
|
(23) |
33 |
|
|
|
|
|
|
Change in cash and cash equivalents |
|
367 |
(1,035) |
|
|
|
|
|
|
Cash and cash equivalents, beginning of period |
|
6,002 |
2,780 |
|
Cash and cash equivalents, end of period |
|
6,369 |
1,745 |
The accompanying notes on pages 15 to 17 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 2nd 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 the recognition and measurement principles of International Financial Reporting Standards ("IFRS") and their interpretations issued by the International Accounting Standards Board ("IASB") as adopted by the European Union applied in accordance with the provisions of the Companies (Jersey) Law 1991.
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. The AIM rules do not require compliance with IAS 34 'Interim Financial Reporting' therefore this half year report has not been prepared in order to comply with the provisions of IAS 34.
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 2020. There has been no change in these areas during the nine months ended 30 September 2021.
Going concern
These condensed consolidated interim financial statements have been prepared on a going concern basis.
In December 2020 the Group retired $33.0 million of outstanding debt, leaving it debt-free and therefore able to direct its cashflow into operational activities. The Group meets its day-to-day working capital requirements from net operating cash flows, cash balances and equity. As at 31 October 2021 the group had cash balances of $6.8 million.
These condensed consolidated interim financial statements have been prepared on a going concern basis, which assumes that Serinus will continue its operations for the foreseeable future and will be able to realise its assets and discharge its liabilities and commitments in the normal course of operations. In assessing the Group's ability to continue as a going concern, the Directors have prepared a base case cash flow forecast under which the Group will have sufficient liquidity for not less than 12 months from the date of approval of these condensed consolidated interim financial statements.
Key inputs in the cashflow forecast include commodity price assumptions, capital expenditures, operating costs and operational performance for each business unit based on the Group's budget as approved by the board of directors. In approving the Group's budget, the Directors have considered the impact of the COVID-19 pandemic on global economic activity, demand for hydrocarbons and the Group's ability to maintain its operations. The Directors have challenged the underlying assumptions incorporated into the budget to satisfy themselves that these represent a robust basis for the base case cash flow forecast and believe the most significant factor that may impact the cashflows in the going concern period under review is the commodity price. The cashflow model has been stressed with a downside scenario incorporating a 25% reduction to the base case commodity price assumptions throughout the forecast period. In doing so the Directors have considered the Group's flexibility as to the timing of its commitment capital, the ability to manage the timing of its discretionary capital expenditure and its operating costs, and, in any reasonable scenario, continue to believe that the Group would have sufficient liquidity for at least the next 12 months.
At 30 September 2021, the Group had a working capital deficit of $8.1 million, however the Directors have considered the circumstances, current status and practical realisations of $11.7 million of current liabilities that relate to long-term historic liabilities and based on this assessment do not believe that these will become due in the going concern period under review.
Therefore, the Directors continue to believe that the Group will have sufficient liquidity to discharge its liabilities in the normal course of business for not less than 12 months from the date of approval of these condensed consolidated interim financial statements. On that basis, the Directors consider it appropriate to prepare the condensed consolidated interim financial statements on a going concern basis.
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 2020.
4. Impairment
At 30 September 2021, Management checked for indicators of impairment or impairment reversals. Management determined that there were no indicators and therefore have not completed an impairment test.
In the comparative period, 30 September 2020, the Company recorded an impairment expense of $9.6 million as the Company completed an impairment test from the weakness and volatility in the commodity prices, as a result of the global COVID-19 pandemic. Management completed impairment tests on all operating CGUs, calculating the estimated recoverable amount based on discounted cash flows, using an after-tax discount rate equal to the weighted average cost of capital of each subsidiary (Romania 12% and Tunisia 22%). Management elected to use a consensus of industry analysts external price forecasts, which are tied to widely-accepted commodity benchmarks. In Romania, management elected to use internal estimates as these represent the most likely outlook of forward gas prices. Management relies on these internal estimates due to the lack of a widely-accepted commodity benchmark, and the inability to tightly correlate to any external benchmark. The following commodity prices were used in the comparative period's discounted cash flow model.
|
Year |
Brent Crude |
Sabria Gas |
Chouech Gas |
Romania Gas |
|
2020 |
42.45 |
5.91 |
4.64 |
3.60 |
|
2021 |
52.24 |
7.28 |
5.72 |
5.25 |
|
2022 |
57.26 |
7.98 |
6.27 |
5.75 |
|
2023 |
59.49 |
8.29 |
6.52 |
5.75 |
|
2024 |
62.97 |
8.78 |
6.90 |
5.75 |
|
2025 |
64.23 |
8.96 |
7.04 |
5.75 |
|
2026 |
65.51 |
9.14 |
7.18 |
5.75 |
|
2027 |
66.82 |
9.32 |
7.32 |
5.75 |
|
2028 |
68.16 |
9.51 |
7.47 |
5.75 |
|
2029 |
69.52 |
9.70 |
7.62 |
5.75 |
|
2030 |
70.91 |
9.89 |
7.77 |
5.75 |
|
Remainder |
75.28 |
10.50 |
8.17 |
5.75 |
The following table provides a sensitivity of the estimated impairment expense in the comparative period, with any changes to the key assumptions used in the model.
|
($ millions) |
1% increase to discount rates |
1% decrease to discount rates |
5% increase to commodity prices |
5% decrease to commodity prices |
|
Additional impairment, net of tax |
0.9 |
(0.4) |
(2.1) |
4.2 |
The results of impairment tests completed by management in the comparative period were sensitive to changes with regards to any of the key assumptions such as commodity prices, discount rates, expected royalties, future development costs, change in reserves, or the expected future operating costs. Any changes to the assumptions could increase or decrease the expected recoverable amounts from the assets.
5. Release of provision
The release of provision in the comparative period was related to the elimination of a long-standing disputed payable for $1.9 million in Brunei, which had passed the relevant statute of limitation period.
6. Income (Loss) per share
| Period ended 30 September | |
(US$ 000s, except per share amounts) | 2021 | 2020 |
Income (loss) for the period | 836 | (13,744) |
|
|
|
Weighted average shares outstanding: |
|
|
Basic shares (000s) | 1,140,661 | 239,286 |
LTIP awards (000s) | 22,500 | - |
Total basic shares | 1,163,161 | 239,286 |
Income (loss) per share - basic | 0.00 | (0.06) |
Dilutive stock options | 11,295 | - |
Total dilutive shares | 1,174,456 | 239,286 |
Income (loss) per share - dilutive | 0.00 | (0.06) |
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. In calculating the weighted-average number of diluted ordinary shares outstanding for the period ended 30 September 2021, the Group excluded 0.1 million (2020 - 13.5 million) stock options as they were out of the money and not dilutive.
7. Supplemental Cash Flow Disclosure
| Period ended 30 September | |
| 2021 | 2020 |
Cash provided by (used in): |
|
|
Trade and other receivables | 2,466 | 1,045 |
Accounts payable and accrued liabilities | 154 | (2,648) |
Restricted cash | 16 | - |
Changes in non-cash working capital from operating activities | 2,636 | (1,603) |
The following table reconciles capital expenditures to the cash flow statement:
| Period ended 30 September | |
| 2021 | 2020 |
PP&E additions | 4,604 | 3,944 |
E&E additions (recoveries) | 4,706 | (222) |
Total capital additions | 9,310 | 3,722 |
Changes in non-cash working capital from investing activities | 555 | (739) |
Total capital expenditures | 9,865 | 2,983 |
[1] For the nine months ended 30 September 2021, Tunisia realised oil prices are calculated using oil sales volumes of 444 bbl/d (30 September 2020 - 465 bbl/d). As at 30 September 2021 there were 5,893 bbls of oil in inventory (30 September 2020 - nil).
[2] Shares held by Catherine Kempster (the spouse of Jon Kempster)
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
COMPANIES COVERED:
Latest directors dealings
- 11 hours ago Rathbones Group
- 11 hours ago Quartix Technologies
- 11 hours ago C&C Group (CDI)
- 11 hours ago Aquila Energy Efficiency Trust (EUR)
- 12 hours ago Cranswick