SDX Swings to Loss in 2019
North Africa-focused SDX Energy's core earnings (Ebitda) were stable in 2019, but the company swung to a net loss because of exploration write-offs and other charges, it said on April 7. Shares in the London-listed producer are down 3.64% at £0.1325 ($0.1634).
SDX produced 4,062 barrels of oil equivalent/day last year, up from 3,574 boe/day in 2018, primarily thanks to the start-up of the South Disouq gas field in Egypt last November. Revenues came to $53.2mn, versus $53.7mn a year earlier, as output growth offset the impact of low oil prices. SDX also gained from a slight increase in the price at it which it sells its Moroccan gas to $10.39 from $10.33/'000 ft3.
Pre-tax and exploration earnings (Ebitdax) was also more or less unchanged at $34.2mn. But the company booked $11.4mn in exploration and evaluation expenses, up from $5.4mn a year earlier, $8.3mn in impairments and $26.3mn in depletion, depreciation and amortisation charges. As a result, it booked a net loss of $18.2mn, versus a modest $112,000 profit in 2018.
Operating cash flow dropped to $25.1mn from $36.2mn, and SDX's cash and cash equivalents dwindled to $11.1mn, from $17.4mn.
Looking forward, SDX said it was fully funded for its activities in 2020, and was in an "extremely robust" position to face the industry's challenges. Its gas sales prices are largely fixed, and the company is forecasting a 66-72% growth in production this year to 6,750-7,000 boe/d, on the back of increased flows at South Disouq.