(Alliance News) - SDX Energy PLC on Friday said net revenue declined in the third quarter of 2019, weighed down by a drop in average oil and service fees.
For the three months ended September 30, SDX's net revenue declined 19% to USD12.5 million from USD15.4 million the year before. For the nine months to September 30, net revenue was also down 4.5% at USD38.0 million from USD39.8 million.
SDX said the net revenue drop was due to a fall in net realised average oil and service fees, which dropped by 13% to USD56 per barrel of oil equivalent for the nine months of 2019 from USD64 per barrel in 2018.
Total sales volumes for the quarter dropped 12% to 3,427 barrels of oil equivalent per day from 3,889 boepd the year before. However, production was 1.3% up on a nine-month basis to 3,501 boepd from 3,455 boepd year-on-year.
Total comprehensive income fell sharply to USD300,000 from USD3.2 million in the three month period.
"Achieving first gas at South Disouq earlier this month was a major milestone for SDX and it is anticipated to have a material impact on the company's cash generation going forward. Furthermore, we are pleased with the performance of the wells and the facility in the first two weeks of operation and this has resulted in a rate of production increase that has exceeded our expectations," said Chief Executive Mark Reid.
Reid added: "We are also pleased to report that production and capex from our operations continue to be within our guided ranges and our cashflow generation, liquidity position, and balance sheet remain strong and continue to provide us with the necessary funding to pursue these remaining two medium-term strategic objectives."
The CEO also noted SDX's plan to ramp up South Disouq production to 50 million standard cubic feet equivalent per day in the first quarter of 2020.
"Together with the drilling campaigns in Morocco and South Disouq, the remainder of 2019 and 2020 will be a very busy and exciting period for SDX and we look forward to providing the market with further updates in due course," he said.
Shares in SDX were down 0.6% at 22.62 pence in London on Friday afternoon.
By Anna Farley; annafarley@alliancenews.com
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SDX Energy (SDX)