Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
DNO ASA has announced the terms of an offer for the whole of the issued and to be issued share capital of Faroe Petroleum. The offer will be 152p/share in cash for each Faroe share, valuing Faroe’s existing issued and to be issued share capital at c £607.9m.
Faroe Petroleum has announced the results of the Agar/Plantain exploration/appraisal well in licence P1763 (Faroe has a 25% interest in Agar/Plantain and 12.5% in the wider licence). The well encountered 20m of gross hydrocarbon-bearing reservoir with high net to gross ratio. Operator Azinor Catalyst estimates gross recoverable resources at 15–50mmboe, a volume expected to be commercial given available infrastructure. Assuming the partial de-risking of Agar/Plantain at mid-case 32.5mmboe (down...
Edison Investment Research Limited Edison InvEdison issues initiation on Faroe Petroleum (FPM)estment Research Limited: 01-Oct-2018 / 09:49 GMT/BST London, UK, 1 October 2018 Edison issues initiation on Faroe Petroleum (FPM) Faroe has successfully established a 98mmboe reserve base through an exploration-led organic growth strategy. Norwegian exploration tax incentives, combined with recent success at Iris/Hades, underpin finding costs of c $1/boe (post-tax) and have delivered a portfolio of development projects with point-forward IRRs ranging from 21% to 41% at $70/bbl. With a RENAV of ...
In its H1 operational update, Faroe Petroleum raised the Iris/Hades 2C estimate by 50%, clearly overshadowing the slightly reduced production guidance to 12–14kboed (12–15kboed). H1 EBITDAX was GBP75m, in line with our estimate when using actual oil/gas prices and adjusting for the Oselvar/Oda compensation payment being GBP20m higher than we expected. We have raised our target price to GBp158 (145) due to higher oil/gas prices in 2018e, the compensation payment, increased 2C estimate for Iri...
Global Energy shares breaking out; Technology remains attractive The MSCI ACWI and S&P 500 have both achieved a higher high relative to mid-April prices, which we see as a potential early indication of a bullish trend change. Combine this with improving market internals and we are becoming incrementally more bullish. For the MSCI ACWI, one of the more concerning breadth indicators has been the percentage of stocks above their 200-day moving average. This indicator recently hit a higher high (se...
We update our model for recent news flow which increases RENAV from 124p to 142p. Although the upside to our PT (set at RENAV) is only 12%, we believe the recent stake building by DNO should limit the downside, and hence believe the risk reward profile given organic and inorganic growth options is still attractive. News flow is limited over the next 6 months so short term the share price may drift, but we expect E&A drilling to ramp up again in Q418.
Weak sales at the start of the year and a need for more excessive markdowns in the near term have made us cut our 2018e EBIT by 6%. With fashion retail markets under pressure and H&M’s struggle in physical stores, we now expect 2018e to be the third consecutive year with an earnings decline. We have reduced our target price to SEK132 (140) and maintain our HOLD.
Faroe has announced two separate discoveries, Iris and Hades, located within the same licence (PL644B) in the Norwegian Sea. Net midpoint resources from the discoveries are 28.3mmboe to Faroe, versus year-end contingent resources of 78.6mmboe. Accordingly, we have added net 5.6GBp to our NAV. However, our target price remains GBp145 as we raised the USD/GBP to 1.4 (1.35). In addition, DNO announced that it acquired in total a 25.4% stake in Faroe for GBp125/share, supporting our view that Faroe ...
The full-year report basically confirmed our investment case. All the guidance was reiterated, management said projects are on track, and the company continues to hunt for accretive M&A opportunities. We reiterate our BUY, as Faroe is trading at an implied oil price of ~USD50/bbl, has attractive assets under development, and is on course for strong production growth in 2018–2022e, which is fully funded. We believe the recent share price weakness offers a solid buying opportunity, and reiterate...
Faroe Petroleum reported 2017 EBITDA of GBP56m, 15% and 6% above our estimate and consensus, respectively. An impairment of GBP13m (GBp3.6/share) partly related to increased abandonment costs in the UK was a negative. The company reiterated its 2018 guidance and said that all projects are progressing according to plan. We expect limited consensus revisions as guidance is unchanged, and consequently we expect a neutral share price reaction. The webcast starts at 12:30 CET (www.fp.fo).
The full-year 2017 results are due on 20 March. As the 2018 guidance, 2017 year-end reserves, and 2017 operational figures have been previously reported, we expect the results to be a minor event. We forecast EBITDA GBP49m, roughly in line with Bloomberg consensus of GBP53m. We keep our BUY recommendation due to the strong balance sheet, strong exploration record, quality assets, and attractive valuation. We have lifted our target price to GBp145 (142) on the back of the NAV increase.
The soft start to the year (unchanged Q1 sales YOY in local currencies) has triggered us to reduce 2018–2019e EPS by 3–5%. We forecast Q1 EBIT down by as much as 53% YOY, and have no rush to turn positive ahead of further key near-term challenges. We keep our HOLD recommendation, but have lowered our target price to SEK140 (146) to reflect our new estimates. The Q1 results are due on 27 March at 08:00 CET.
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