Coro Energy PLC (AIM:CORO) has highlighted several achievements and provided insights into its future plans with its final results for the year ended 31 December 2022.
One of the key highlights was the resumption and increased gas production from Coro's onshore operations in Italy, capitalizing on the rise in gas prices in the country which resulted in a profit of US$2.6mln for the year and a significant cash benefit to the group.
In the results statement, James Parsons, executive chairman of Coro Energy, expressed satisfaction with the operational progress made in 2022 and the first quarter of 2023. He highlighted the approaching monetization of the company's flagship Indonesian gas asset, the ongoing sale of Italian gas assets, and the growth of the clean energy portfolio in Vietnam and the Philippines.
Parsons outlined the company's strategic focus on South East Asia, aiming to monetize the Duyung PSC, repay or restructure corporate debt, and strategically invest in the region's renewable energy business. Coro Energy also seeks to secure new oil and gas opportunities in South East Asia to support the transition away from coal and meet the region's increasing energy demand.
As part of its strategy to capture the value of its Italian natural gas portfolio, Coro granted an option to acquire the business to Zodiac Energy. That option was exercised, and a sale and purchase agreement was entered into in March 2023.
The company also made progress in commercializing the Mako gas field in Vietnam, with a focus on obtaining approval for an updated plan of development and advancing a binding gas sales agreement. In addition, Coro successfully completed its first rooftop solar project in Vietnam and announced a potential acquisition of a further 3.25MW project.
Coro continued its efforts in the Philippines, with ongoing planning and permitting activities for renewable solar and wind projects. The company submitted an application for a wind energy service contract and installed a Lidar to collect data.
The company said it looks forward to completing the sale of its Italian assets and utilizing the funds to meet the Duyung PSC pre-FID expenditure, advance the renewable portfolio, and provide working capital. With approved plans of development and a revised CPR, Coro anticipates a significant uplift in its core net asset value from the Duyung PSC.
The company expects the monetization of Duyung to enable the repayment or restructuring of its corporate debt well before its expiry in April 2024.
Coro Energy remains active in exploring business development opportunities in the region, aiming to identify potential oil, gas, and other energy assets that align with its clean energy portfolio.
With these developments, Coro Energy said it is optimistic about its future and the positive impact it can make in the South East Asian energy market.
Regarding financial matters, Coro restructured its Luxembourg-listed €22.5mln Eurobond secured notes in 2022, extending the maturity to April 2024.