(Sharecast News) - SDX Energy updated the market on its strategic transformation on Monday, shifting its focus from solely an oil and gas business to becoming an integrated, hybrid energy provider in Morocco.
The AIM-traded firm said the strategic shift would position it to play a crucial role in the energy transition sector within the region.
As part of its new corporate strategy, SDX was divesting its Egyptian assets to concentrate on expanding its operations in Morocco while generating initial funding to support its evolving energy strategy.
SDX said it was committed to its upstream Moroccan gas assets and would continue to produce natural gas and sell it to off-takers.
The board said one of the fundamental principles guiding its strategy was "doing more with what we have".
To that end, the company plans to extend its existing gas transportation infrastructure to facilitate gas imports from Spain via the Maghreb-Europe Gas Pipeline.
That expansion would increase the gas supply to Morocco's Kenitra region, enhancing SDX's presence in the local energy market.
Looking ahead, SDX intends to venture into renewable power generation in the medium term.
Leveraging its robust gas off-taker base, the company said it aimed to offer a commercially compelling combination of natural gas and green electricity.
"Over the last six months, SDX's senior management has been working intensively to reposition the company, setting the foundation to execute the company's new strategy," said chief executive officer Daniel Gould.
"This strategy will help the company to deliver long-term, sustainable value-creation - unlocking new business directions and project opportunities.
"With the upcoming disposal of Egyptian assets and a series of exciting opportunities in Morocco, SDX has begun repositioning itself corporately and operationally and I am looking forward to steering the company towards a prosperous future for its shareholders."
At 1525 GMT, shares in SDX Energy were down 2.39% at 4.002p.
Reporting by Josh White for Sharecast.com.
SDX Energy (SDX)