Coro Energy PLC (AIM:CORO) chair James Parsons says volatility in energy markets presents “huge opportunity” for the company.
In its results statement, Parsons described Coro as “a micro-cap company with gas production, gas reserves and a growing clean energy portfolio”, and said it's been boosted by “the re-birth” of its Italian gas portfolio thanks to higher European gas prices.
At the same time, the company seeks to monetise its Duyung PSC asset, host to the Mako gas field offshore Indonesia, along with the development of renewable energy ventures in South East Asia.
“Our strategy remains to monetise the Duyung PSC, use the Italian cash flows, which more than covers the Company's G&A costs, and invest selectively in South East Asian renewables and high graded Italian production enhancement opportunities,” Parsons said.
In terms of operation highlights for the financial year, ended December 31 2021, the company noted that it had established a basic operating infrastructure in the Philippines and initiated planning and permitting activities for its renewable energy business.
At Mako, 15% owned by Coro, it continued work with the operator which is progressing key commercial workstreams including preparation of an updated plan of development and signing of a binding gas sales agreement.
It entered into a new venture in Vietnam to develop rooftop solar projects and initiated a 3MW pilot including signing a 25-year Power Purchase Agreement for the pilot
Coro raised US$5.5mln of new equity during the year, to fund its low-carbon energy investments.
Mark Hood was appointed as chief executive, and, in the current financial year the company successfully restructured a €22.5mln Eurobond, which will now mature in April 2024.
The company told investors it is “extremely confident” in what can be achieved in 2022.
In terms of financials, the company reported a US$6.5mln loss for the year including what it said was only a slight increase in G&A costs, offset by a US$1.6mln gain on foreign exchange (due to dollar strength against the Euro).
Production of Italian gas led to US$200,000 of revenues in 2021, and, the company said it continued to focus on minimising costs in the year. It ended December with US$3.3mln of cash and equivalents.