After operating costs, SDX Energy (SDX) made $19.3m (£14.9m) in the first half of 2018. Although cash flows were also up, the bottom line was largely cancelled out by $3.1m of tax payments, $2.8m of general and administrative costs, $6.2m of depreciation charges, and a $5.3m write-down on two non-commercial wells.
IC TIP:
Buy
at
57.5p
The maintenance of a $25.2m net cash position therefore required the higher oil and gas prices seen in the period, as drilling activity hoovered up a chunky $24.7m of capital. The result was 20 discoveries at 23 of the wells drilled, and most of the drilling programme is completed, although at least $27.7m has been committed to second-half work commitments.
