EGP float savings unnoticed; initiate at Overweight
Unjustified discount to peers. TGL is a Canada/US-listed oil exploration and production (E&P) company operating in Egypt. TGL trades 50% below peers’ EV/2P reserves at USD5.9/bbl, unwarranted in our view, given its reserve and EBITDA growth potential. c50% of operating expenses are in EGP, making it a beneficiary of EGP floatation. Our TP (+30% upside), puts TGL 30% below peers’ EV/reserves to reflect the Egypt risk despite TGL’s acquisition of a producing asset in Canada in Dec-16. Based on industry-average profitability, we estimate its potential value accretion at cUSD1/share assuming net reserves are 50% of the announced figure for gross reserves.
TransGlobe Energy is engaged in oil and gas exploration, development and production and the acquisition of properties within the Arab Republic of Egypt and the Republic of Yemen.
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.