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(Sharecast News) - SDX Energy reported net revenue of $16m (£13.05m) in its first quarter results on Wednesday, rising from $12.7m year-on-year.
The AIM-traded firm said netback for the three months ended 31 March totalled $12.1m, rising from $9.3m, while the net realised average oil price slipped to $43.03, from $54.58.
At the same time, the average realised Morocco gas price eked out gains to $10.33 per million cubic feet, from $10.26, while the net realised South Disouq gas price had a maiden figure of $2.85 per million cubic feet.
SDX said its EBITDAX for the period rose to $11.1m from $7.8m, while its exploration and evaluation expenses rose to $4.8m from $0.2m.
Its depletion, depreciation and amortisation widened to $6.7m from $5.9m, as the company swung to a total loss of $3.2m from a profit of $0.1m a year earlier.
Capital expenditure in the period was also higher, at $15.5m compared to $13m year-on-year, while net cash generated from operating activities slipped to $6.3m from $7m.
At period end, SDX said it had $8.8m in cash and cash equivalents, falling from $11.4m a year earlier.
Looking ahead, the company said its 2020 production guidance of between 6,750 and 7,000 barrels of oil equivalent per day was 66% to 72% higher than actual production in 2019.
At the same time, it said its 2020 capital expenditure guidance had been revised up from $24.7m, as per its annual results operations on 7 April, to $28.2m.
It said the revision reflected the 100% cost of tying in the successful SD-12X well in South Disouq.
"The first quarter of 2020 proved to be a positive period for SDX against the backdrop of a challenging global economic environment," said chief executive officer Mark Reid.
"Production has been above expectations and I am pleased that our resilient business continued to generate cash from our oil and gas production as well as discovering new resources through the drill bit in both Morocco and Egypt.
"Although we are currently living in a dynamic and fast-changing environment, it gives me great reassurance that approximately 90% of the company's 2020 cash flows are expected to be generated from our fixed-price gas business."
Reid said disruption to the business as a result of the Covid-19 coronavirus pandemic had so far been "minimal", adding that the firm was "pleased" that its three Moroccan customers that were temporarily closed were beginning to take gas again.
"Our ongoing cash generation and cash position remains strong and we continue to have access to $7.5m of additional liquidity through our EBRD credit facility.
"That said, capital discipline remains our key priority as we continue to navigate the year with necessary caution to our surrounding environment but also with confidence in the ability of our business to produce significant returns in 2020 and to continue to grow thereafter."
At 1010 BST, shares in SDX Energy were up 0.57% at 17.6p.
3 May 2024 15:50
IN BRIEF: SDX Energy completes drilling operations in Rharb Basin
SDX Energy PLC - London-based energy company with exploration, development and production assets in Egypt and Morocco - Completes drilling operations on the BMK-2 well, located in the Rharb Basin, Morocco. "At 1,265 metres in the Guebbas formation, the well encountered a 9-metre interval, believed to be equivalent to the well's primary target, with strong gas shows up to approximately 100 times background gas readings. The well was drilled to its total depth of 1,412 metres, and has been left temporarily suspended with a plug set to allow the well to be sidetracked, to the target formation at 1,265 metres, once the required equipment has been mobilised," says SDX.
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