Coro Energy PLC (AIM:CORO) sad high gas prices being received by its operations in Italy will continue to generate significant free cash flow and help develop its other operations.
Average daily production from Italy was 20,000 standard cubic metres (scm) in April, which generated €580,000 in revenue with cashflow also boosted by a €200,000 VAT return, Coro said in a trading update.
Gas prices during the month averaged €0.98/scm and the company said it “continues to expect significant free cash flow from its Italian portfolio”.
In March, Coro reported gas prices in Italy had risen by more than 700% over the past year, prompting it to shelve plans to dispose of the assets.
Italy is expected to generate €5mln per year in free cash flow for the company with the Sillaro field now back in production.
Elsewhere, the rooftop solar venture in Vietnam is on track for maiden revenues before the end of 2022, said Coro, with a net cash flow of approximately US$0.3mln per annum thereafter.
In the Philippines, two development stage renewables projects are six and twelve months respectively away from achieving ready-to-build status, while in Indonesia rising gas prices have also progressed the Mako field towards an investment decision (FID) in 2023 with potential first sales in 2025.
Coro has a 15% stake in the Mako field, with its share of pre-FID expenditure estimated at US$1mln and a further US$38mln if there is a decision to go ahead.
Funding for its share of the Mako development would be through a combination of Reserve Based Lending and farm-in transactions, added the statement.
Coro's current cash position is approximately US$2.8mlm supported by its Italian assets with Vietnam solar pilot to start to chip in later this year.
Mark Hood, Coro’s chief executive, said: “The opportunities presented by our Italian assets leave us in a strong financial position as we look to generate revenues from our blended portfolio of gas and renewables assets."