Stay OW on positive view of Egypt’s contribution
Mispriced. We revise our 12M TPs downwards by on average 40% as we assume constant Brent prices of USD55/bbl for 2018-22 (vs. a previous rising oil-price backdrop based on trading oil future contracts). TGL trades on EV/2P reserves of USD1.9/bbl, a discount averaging ~75% to closest peers SDX LN and DANA UH, which we find unjustified given that it offers scope for additional developments in Egypt (90% of revenue in 2Q17). TGL has potential for new discoveries and upside from 3 concessions under exploration (South Alamein is in our DCF). Also, TGL’s liquid assets (cash, receivables and inventory) cover debt obligations, and we see TGL resume dividend payments in 2018 (5.5% yield) as FCFF is north of 25%.
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.
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