Serinus Energy Q&A: ‘A very encouraging set of numbers’ say Arden Partners

Serinus Energy plc (LON:SENX) is the topic of conversation when Research Director at Arden Partners Daniel Slater joins DirectorsTalk.

Serinus Energy have published H1 2020 results, Daniel what did you think of the results?

In our view, the results helped demonstrate the strong cash flow generating ability of the existing Serinus production position, with the limited OPEX helping support this even during a period of particularly low oil and gas prices. Given the macro backdrop, we thought it was a very encouraging set of numbers.

How did the company fair during the pandemic?

Serinus has been able to continue production operations largely unaffected, which was very helpful. Clearly the company’s oil and gas prices have been affected, but we are now beginning to see recovery here overall. Coronavirus restrictions have impacted Serinus’s ability to execute its work programmes, with drilling and seismic activity in Romania deferred, but we expect this to be implemented going forward as restrictions are relaxed.

How do you view the outlook?

Serinus’s existing production should continue to generate cash, particularly as oil and gas prices continue to recover. There is then significant potential for additional production volumes, exploration wells and further development activity within the portfolio as and when Serinus is able to bring new work programmes forward. Coronavirus restrictions will be important here, but so will the ongoing debt discussions with lender the EBRD, which could help free up cash flows for reinvestment in the significant opportunities contained in the existing portfolio.

How do you view the company in terms of fair value?

We do not believe that the value of the company’s existing production position combined with the forward potential contained in Serinus’s assets, particularly for new drilling programmes and potential new gas plant developments in Romania, is reflected in the current share price.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Share on twitter
Share on linkedin

More articles like this

Oil rebounds on robust economic data

Oil prices rose on Tuesday as investors looked for bargains following the previous day’s plunge on rising output from OPEC+, while strong economic data from the United States and China brightened recovery prospects. Brent crude futures rose 78

Oil prices end higher

Oil futures ended higher Monday, shaking off earlier gains, with traders expecting shipping delays to persist, even as one of the world’s largest container vessels has been freed in the Suez Canal. The ship had run aground nearly

Serinus Energy “2020 was a transformational year for the Company”

Serinus Energy plc (LON:SENX) has announced its preliminary financial results for 2020. OPERATIONAL ·      Serinus Energy plc and its subsidiaries (“Serinus”, the “Company”, or the “Group”) have continued to operate safely and effectively through the COVID-19 pandemic, with the

Crude oil markets finding support

The West Texas Intermediate Crude Oil market has initially fallen during the trading session on Monday to find support just above the $60 level. At this point, the market looks as if it is trying to test the bottom of

Serinus Energy to present live presentation on 30 March 2021

Serinus Energy plc (LON:SENX) has announced that Jeffrey Auld CEO, Andrew Fairclough CFO and Calvin Brackman Vice President of External Relations and Strategy will provide a live presentation via the Investor Meet Company platform on 30 March 2021 at 4:30pm BST relating to