Serinus Reports 175% Increase in Net Income on Rising Production

Canada-headquartered Serinus Energy, controlled by Poland’s richest man Jan Kulczyk, reported a 56% production increase in the second quarter of the year compared to the same period of 2013. 

The company, which maintains a focus on gas, started producing oil in the last months.  

‘Production in the second quarter was 4,965 boe/d, up 56% vs. Q2 2013, and 2% higher than the 4,849 boe/d in Q1 2014. The growth vs. Q2 2013 was assisted by the acquisition of Winstar Resources,’ reads a note released on Wednesday. 

Despite political tensions in the area around Lugansk, Serinus’ North Makeevskoye-4 (“NM-4”) exploration well commenced drilling in June. Meanwhile, the company also invested in Tunisia through its wholly-owned subsidiary Winstar. 

Production does not seem much of a problem, but tensions in Ukraine had consequences on its financial performance. 

‘Serinus recorded comprehensive net earnings of $6.7 million in the second quarter of 2014. Comprehensive earnings were impacted by a $2.0 million charge taken for unrealized foreign currency translation. This relates to the translation of the Ukrainian subsidiaries’ financial statements from UAH to USD, and the loss reflects the deterioration of the UAH.’ 

Nonetheless, the net income increased by 175% and comprehensive net income by 112%. 

Serinus is mainly focused on Ukraine, where it owns a 70% interest in KUB-Gas LLC near to the City of Lugansk in Eastern Ukraine. According to the company, four of the concessions are currently producing oil or gas.