SDX raises going concern worries on Egypt currency woes

SDX raises going concern worries on Egypt currency woes

SDX has operations in Egypt and Morocco





North Africa-focused SDX Energy has raised going concern worries about its ability to continue to operate into 2024.

In its annual results, the company noted that it is unable to return funds from Egypt via US dollar transfers. The Egyptian pound has also been devalued repeatedly since March 2022 and has now lost around half its value.

There is not an impact on receivables, SDX said, but its cash balance – held in country – is exposed to fluctuations.

While the company believes it can raise cash, it is unsure how much or how quickly it would be able to carry this out.

SDX directors believe the company can continue as a going concern for not less than 12 months, however.

Interim executive chairman Jay Bhattacherjee acknowledged the concerns on Egypt’s outlook. Historically, the company’s assets in Egypt have funded growth.

Currently, he said, “Egypt is a challenging operating environment for energy companies with sharp devaluation in the value of the currency, which has impacted the dollar value of the cash we hold there, and severe limitations on our ability to transfer funds out of the country due to