WOOD Flash – Nostrum Oil & Gas: 1Q18 review – results broadly in line, 2018E production guidance revised down
Nostrum Oil & Gas (NOG) reported its 1Q18 financial results this morning and held a conference call following the results (22 May). The company already reported its operating update for 1Q18, and guided for its sales and net debt position on 30 April. Revenues of USD 95m (-15% yoy) were in line with both the guided figure and expectations. EBITDA of USD 57m (-16% yoy) was generally in line with our estimate (a 4% beat), but missed the consensus expectations by 8%, reaching a solid 60% margin. Despite the weak performance and the downward 2018E production guidance, from 37,000boepd to 34,000boepd, we reiterate our BUY rating, as both the weak performance and the new guidance figures are in line with our expectations, and we believe that both have been reflected in the share price already, following the 1Q operational update. Moreover, the current crude price levels and the faster-than-expected tie-in of the GTU3 offer additional upside for our valuation of GBp 404/share (42% upside).Nostrum Oil & Gas is an independent oil and gas company, engaged in the production, development and exploration of oil and gas. Co. operates three exploration concessions and are primarily conducted through its oil and gas producing subsidiary Zhaikmunai LLP located in Kazakhstan. Zhaikmunai LLP carries out its activities in accordance with the Contract for Additional Exploration, Production and Production-Sharing of Crude Hydrocarbons in the Chinarevskoye oil and gas condensate field for the exploration and production of hydrocarbons in Chinarevskoye oil and gas condensate field.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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.