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Serinus Energy PLC on Monday said it swung to annual profit on the back of higher oil prices, despite a slump in production.
Serinus shares were up 4.5% to 1.96 pence each in London on Monday.
Serinus, which operates oil and gas projects in Tunisia and Romania, swung to net income before tax of $8.8 million in 2021 from a loss of $8.5 million in 2020.
Revenue increased 67% to $40.0 million from $24.0 million.
Production in 2021 came in at 1,649 barrels of oil equivalent per day, falling 30% from 2,340 barrels in 2020. The average realised oil price increased 83% to $65.19 a barrel from $35.56.
‘The company has proactively managed its production, stabilising natural declines in Romania and adding incremental production in Tunisia through workovers on its Chouech assets. The company is well-advanced on the implementation of its artificial lift programme in the Sabria field in Tunisia, beginning with the Sabria-W1 well,’ Serinus said.
It declared no dividend, unchanged from 2020.
Serinus said that it will focus its operating cashflow on high-return investments that position the company for significant near-term growth.
Chair Lukasz Redziniak said: ‘Our ability to generate significant cash flow in 2021 has continued into 2022 and has allowed the company to initiate an intensive capital investment program for 2022, including a multi-well drilling program in Romania and the artificial lift and well workover programs in Tunisia.
‘We expect these programs to increase the company's production by the end of 2022. Further opportunities to invest capital and increase production exist beyond 2022.’
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