SDX beats Moroccan gas guidance
North Africa-focused producer SDX Energy reported year-on-year improvements in some key metrics August 20 as Moroccan demand rose along with the average price, and the company ended the period with $9.1mn in cash.
Revenues were up from $9.2mn in Q2 2020 to $13.7mn; net cash was up from $5.5mn to $8.8mn and pretax earnings excluding exploration expenses (Ebitdax) were $10.1mn, up from $6.3mn.
It said assets in Egypt and Morocco "are performing well and we remain above our mid-point guidance for the year. Our drilling activities have yielded three successful wells in Morocco, all of which are now onstream and contributing to cash flow, and one at South Disouq [in Egypt], which is due to start up shortly." Overall production guidance is 8-12% higher than 2020 production.
H1 2021 entitlement production of 5,931 boe/d was 3% higher than midpoint guidance of 5,770 barrels of oil equivalent/d for the year but 4% lower than H1 2020. Moroccan gas prices rose from $10.4/'000 ft³ to $11.5/'000 ft³. Disouq South netbacks were down year on year owing to field declines but SDX expects it to finish the year close to plan, as new wells are brought on stream with fewer impurities.
CEO Mark Reid said H1 2021 results showed "strong growth in revenue, netback, Ebitdax and operating cash flows versus the same period in 2020, as well as ending the period with a strong liquidity position."