TIDMSDX
RNS Number : 6508U
SDX Energy PLC
27 November 2023
27 November 2023
SDX Energy Plc ("SDX" or the "Company")
Corporate Strategy
-- Daniel Gould, the new CEO, is leading the evolution of SDX
away from a pure oil & gas business into an integrated, hybrid
energy-provider in Morocco - becoming a strategic regional player
in the energy transition sector.
-- SDX is divesting its Egyptian assets - to focus on growing
its Moroccan operations and generate initial funding to support the
new strategy.
-- SDX will maintain its upstream Moroccan gas assets and
continue to produce natural gas, selling it to offtakers.
-- SDX will operate on the principle of 'doing more with what we
have' - with a plan to extend its existing gas transportation
infrastructure to enable gas imports from Spain, via the
Maghreb-Europe Gas Pipeline - expanding gas supply to Morocco's
Kenitra region.
-- The Company also intends, in the medium-term, to expand into
renewable power generation - leveraging its strong gas offtaker
base for a commercially compelling cross-sell of gas and green
electricity.
-- Delivery of concrete milestones on the Company's strategic
roadmap in the coming six months will demonstrate SDX's successful
shift into the transition energy sector - creating stable
cash-flow, re-rating the Company's valuation and generating value
for its shareholders.
Daniel Gould, Chief Executive Officer said :
"Over the last six months, SDX's senior management has been
working intensively to reposition the Company, setting the
foundation to execute the Company's new strategy. This strategy
will help the company to deliver long-term, sustainable
value-creation - unlocking new business directions and project
opportunities. With the upcoming disposal of Egyptian assets and a
series of exciting opportunities in Morocco, SDX has begun
repositioning itself corporately and operationally and I am looking
forward to steering the Company towards a prosperous future for its
shareholders."
The Company is pleased to announce that its new strategy
presentation has been uploaded to its website. The strategy
document and its execution will be spearheaded by newly appointed
CEO Daniel Gould, who has been working to progress many of the
strategic initiatives over the last six months.
SDX's new corporate strategy is to evolve the Company into a
vertically-integrated hybrid gas- and renewable-energy producer in
Morocco and beyond. The strategy is built on the core principle -
'Doing more with what we have'. The company will look to leverage
its 12+ year presence in Morocco, a successful track-record of
delivery, a strong gas offtaker client list and a unique gas
transportation infrastructure, enabling gas distribution to one of
the largest free trade zones in Africa.
SDX's vision for a diversified energy transition business is
planned to be realised through a series of complementary and
modular projects. These consist of the following 'building
blocks':
(A) Expansion of SDX's existing gas transportation
infrastructure to connect to the Algeria-Spain gas pipeline ("GME")
- once realised this will enable SDX to supply gas from Europe to
industrial offtakers in Morocco's Kenitra region;
(B) Generation and cross-selling of renewable energy together
with SDX's existing gas offtake contracts; and
(C) Vertical expansion into additional power-generation
initiatives, on an opportunistic basis.
These projects may be executed in parallel and independently of
each other - taking advantage of the high demand and favourable
pricing environment in Morocco for additional gas and green
electricity. SDX plans to enter into partnerships with key
stakeholders in a number of projects and expects to both expand
existing and create new joint ventures.
True to its principle of 'Doing more with what we have', SDX
fully intends to continue its upstream activities in Morocco in the
immediate future and beyond, planning additional drilling activity
in 2024, planned to be funded by way of a prepayment agreement with
the Company's largest offtaker.
The strategic plan is designed for the short- and medium-term
horizon, covering up to four years - with milestones expected to be
reached in the near future.
While the primary focus during this period remains on Morocco,
the Company remains open to international expansion as
opportunities may arise in the future.
The Company looks forward to sharing further information with
stakeholders over a series of webinars and scheduled meetings -
details of which will be communicated in due course.
Financing Strategy
The successful execution of the Company's Corporate strategy in
the short and medium-term is contingent on the effective divestment
of SDX's Egyptian assets and executing on the management's funding
strategy. The Board remains confident that it is on track for the
Egyptian sale as per the Company's earlier guidance and further
announcements will be made once definitive legal documentation has
been signed to effect the sale.
For further information:
SDX Energy Plc
Daniel Gould, Chief Executive Officer
William McAvock, Chief Financial Officer
Tel: +44 (0) 20 3219 5640
Shore Capital (Nominated Adviser and Broker)
Toby Gibbs/Iain Sexton
Tel: +44 (0) 20 7408 4090
InHouseIR (Investor and Media Relations)
Sarah Dees/Oliver Clark
Email: sdx@inhouseir.com
Tel: +44 (0) 7881 650 813 / +44 (0) 20 3239 1669
Camarco (PR)
Billy Clegg/Owen Roberts/Violet Wilson
Tel: +44 (0) 20 3757 4980
About SDX
For further information, please see the Company's website at
www.sdxenergygroup.com or the Company's filed documents at
www.sedar.com
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END
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November 27, 2023 02:00 ET (07:00 GMT)
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