SDX Energy PLC on Friday said its annual revenue fell in 2022, due to increased operating costs and lower sales volumes.

SDX Energy is a London-based oil and gas company which operates in the Middle East and North Africa. Shares in the firm were down 27% at 5.25 pence each in London on Friday afternoon.

Net revenue was down 19% to $43.8 million in 2022 from $53.9 million the year prior.

This followed an increase in operating expenses of $10.5 million, up 33% from $9.7 million the year before.

The firm’s total sales volumes also fell to 4,898 barrels of oil equivalent per day from 5,886 boepd, as its netback per barrel of oil equivalent dropped to $18.59 from $20.54.

SDX Energy also noted the non-renewal of an expired customer contract in Morocco, lower production in the South Disouq project and one-off costs relating to one of its wells in Morocco.

The company’s pretax loss widened to $30.4 million from USD 17.1 million the year prior. Earnings before interest, tax, depreciation, amortization, and exploration expense dropped by 38% to $24.6 million from $40.0 million.

SDX Energy reported that its full-year net production was 3,723 boepd, which was ‘marginally ahead’ of its guidance of 3,480 to 3,795 boepd.

Looking ahead, SDX Energy said it is going into 2023 with a focus on delivering sustainable returns to shareholders by pursuing opportunities within and outside its portfolio.

Interim Executive Chair Jay Bhattacherjee, said: ‘We are revaluating our standing in the wider energy sector and will consider all reasonable avenues, including transition fuels and alternative energies, to deliver long term sustainable returns to shareholders. The Company has great strengths, and I’m confident that we can rise to and overcome the challenges faced and return to growth.’

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