Saffron Energy Profit Hit By Listing Costs In Maiden Results
LONDON (Alliance News) - Gas producer Saffron Energy PLC reported a loss in its maiden interim results on Wednesday following its flotation on the London Stock Exchange in February, as it awaits a production concession grant for its third planned field in Italy.
The company made a loss after income tax of EUR916,000 for the half year to the end of June on revenue of EUR560,000.
Saffron successfully listed on the AIM market of the London Stock Exchange in February 2017 following an oversubscribed GBP2.5 million book build and capital raising. It did not provide comparative profitability and revenue figures.
The group has two gas production fields, Sillaro and Bezzecca, as well an application for a near-term gas production field at Sant'Alberto, with all near to the Italian cities of Milan and Bologna.
The Bezzecca field only started steady production in May 2017. As a consequence, results for the first half of 2017 were hit by the fact that there was only two months of commercial production from Bezzecca, as well as one off costs related to its IPO.
Production increased over the first six months of 2017 to 2.6 million standard cubic metres of gas from 2.4 million the year before. All of this production was from its up-and-running Sillaro field and the Bezzecca field.
According to the Saffron's Chief Executive Officer, Michael Masterman, the company "continues to make good progress" on its Sant'Alberto field application.
Masterman said, however that they had thought the production concession would have been granted by the first half of 2017, but that they "now anticipate that this will have been achieved by the third quarter of 2017", and that "development of Sant'Alberto will follow the grant of the production concession and first gas is now expected in or around the first quarter of 2018."
"Saffron has reached major milestones with mechanical completion of the tie-in development and commencement of commercial production from Bezzecca, whilst progressing the final stages of approval for its Sant'Alberto field which is intended to come on stream in the next 12 months. We look forward to prospering with the development work as we head towards production from Sant'Alberto in 2018 and prepare for the second phase of production ramp-up which will include a sidetrack well at Sillaro and a second development well at Bezzecca," Masterman said.
Shares in Saffron were flat at 4.5 pence Wednesday.
By Ahren Lester; [email protected]
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