Southern Energy Corp on Friday said its loss narrowed despite petroleum and natural gas sales which were down due to falling prices.
The Calgary, Canada-based energy producer said its net loss narrowed to $2.1 million in the quarter to the end of September, from $2.4 million year on year.
The net loss widened slightly in the financial year to the end of September to $7.8 million from $7.3 million in 2023.
The company said its petroleum and natural gas sales were down 34% in the quarter to £3.5 million from £5.3 million. They were also down 14% in the first three quarters combined to £12.2 million from £14.2 million last year, due to the ‘challenging natural gas price environment in 2024’.
Southern Energy said its production was also down 17% to 2,336 barrels of oil equivalent per day from 2,814 boepd.
The company said it has been ‘actively reducing and optimising’ operating costs and maintenance capital in response to low natural gas prices, including selling excess equipment inventory for $2.0 million net proceeds in the third quarter.
Chief Executive Officer Ian Atkinson said: ‘Southern remains steadfast in preserving its balance sheet amid the challenging natural gas price environment of 2024. With natural gas prices on track to be the second lowest in 24 years, we have proactively focused on optimizing our value chain. This includes generating $3.4 million in proceeds through the sale of excess equipment inventory in 2024 and reducing our abandonment liabilities by divesting non-core, non-producing wellbores during [the third quarter].
‘Looking ahead, there are encouraging signs of price improvement as we enter winter and progress into 2025...The longer-term structural case for natural gas also looks promising, as the lack of new storage capacity built will continue to tighten markets and geo-political events in Europe are expected to make US [liquefied natural gas] more attractive,’ he said.
Shares in Southern Energy were up 0.1% to 5.88 pence in London on Friday afternoon.
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