Zenith Energy (LON: ZEN) investors have been encouraged this morning by news that the company's production activities in Italy achieved a new record profitability because of the “current favourable energy pricing climate.”
The international energy production and development firm said electricity generation activities at the Torrente Cigno concession in Italy, where low-grade natural gas production is used to generate electricity, have registered a new record in terms of profitability.
During September, Zenith produced a total of approximately 920 MWh, a slight rise from the previous month.
According to the company's press release, electricity prices during September averaged approximately EUR 157 per MWh, resulting in net revenues of about EUR 150,000 per month. The current net production costs remain fixed at roughly EUR 35,000 per month.
The record profitability has come from an energy crisis in Europe and the rest of the world, with natural gas and electricity prices soaring in the wake of the pandemic recovery.
It has seen company's like Zenith report an increase in profits, resulting in share prices climbing. Zenith shares are up 1.29% at 1.09p on Tuesday.
Elsewhere, the company said it has issued 3.9 million new shares at an issue price of NOK 0.1266 (approximately £0.011) to Winance regarding a Loan Agreement which it announced in May.
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