BW Energy (Buy, TP: NOK36.00) - Strong potential about to unfold
Ahead of BW Energy’s Q3 report (due at 07:30 CET on 16 November), we estimate EBITDA of USD61m, compared to Bloomberg consensus of USD76m (few contributions). Following the ongoing ramp-up of production in Gabon from ~10kboed to ~35kboed (gross) along with the closing of Golfinho adding a further ~11kboed, we see prospects for solid FCF in 2024e. However, this remains dependent on the Maromba development not being sanctioned. We reiterate our BUY and have raised our target price to NOK36 (33), as we have increased our long-term oil price assumption from USD70/bbl to USD75/bbl.BW Energy Ltd. BW Energy Limited is a Bermuda-based oil and gas company engaged in oil and gas exploration and production activities. The Company is involved in the acquisition, development and production of oil and natural gas fields. It has a diversified portfolio of production and development assets offshore West Africa and Brazil, and holds interests in three hydrocarbon licenses in Gabon, Brazil and Namibia. Its Dussafu Marin Permit and the associated Ruche Exclusive Exploitation Area (EEA) production license are located approximately 50 kilometers (km) off the coast of Gabon. The Ruche EEA covers an area of approximately 850 square kilometers. The Maromba discovery is located approximately 100 kilometers offshore in the southern part of the Campos Basin. The Kudu gas field is some 130 km offshore and covers an area approximately 4,500 square kilometers. The Company's subsidiaries include BW Energy Dussafu B.V., BW Energy Gabon Pte Ltd, BW Energy Gabon SA and BW Energy Holdings Pte Ltd.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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