EXMAR Sale of Tango FLNG as a fresh start
Exmar announced last Friday that they will sell their Tango FLNG barge to Eni for a price ranging between $572m and $694m. The sale itself comes as a surprise, as well as the transaction value is way higher than expected. It represents an upside of c. $300m vs our estimated NAV value and up to c. $400m vs its book value. At the same time, the transaction takes away all doubts about Exmar's balance sheet. The company gets a ‘fresh start', giving opportunities for deleveraging, investments in new LNG infrastructure (or vessels) and a really sizeable dividend. Together with these developments, the strong USD lifts our TP significantly higher. We upgrade to ‘Buy' and set our TP at €13/share (up from €5.7).Exmar is a diversified and independent industrial shipping group that serves the international oil and gas industry. Co. provides ships for products transport and performs studies, undertaking the management of commercial, technical or administrative activities. Co. specializes in gas transport activities, particularly Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG) and Ammonia (NH3). Co., through it's subsidiary EXMAR Shipmanagement, provides ship management and ancillary services to ship owners, including regasification and liquefication; other services offered by Co. include insurance brokerage (managed by its subsidiary Belgibo) and an in-house travel agency (Travel Plus).
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