Paratus Energy (Buy, TP: NOK70.00) - All eyes on Mexico
As expected, no Pemex payments have arrived yet (outstanding receivables equal around five quarters of revenues); the key focus for the stock is payments timing. It has seen similar payment disruptions during its time in Mexico (c10 years), but historically these have ultimately been paid. Management was optimistic due to comments from the new administration in Mexico, also alluding to other avenues of getting cash inflow (e.g. factoring). In a scenario with regular collections, the current 20% dividend yield is sustainable, but resuming regular collections in Q1 2025 is key. We reiterate our BUY and NOK70 target price, although the stock is likely to trade at a discount until the Mexico situation is sorted out.
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.
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.