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Energean’s London landing

Following its March IPO, the Eastern Mediterranean-focused explorer-producer is moving ahead with its key project
April 23, 2018

Eastern Mediterranean-focused Energean (ENOG) listed in London just over a month ago, raising $460m (£328m) in the process. It then signed a $1.3bn senior credit facility underwritten by banks including Morgan Stanley, gave the green light to the massive Karish and Tanin gas project offshore Israel, and awarded key contracts for the field.

IC TIP: Sit tight at 470p

It also boosted existing production in the first quarter of 2018 by 32 per cent year on year and progressed plans for a secondary listing on the Tel Aviv stock exchange. And since the end of its last financial year Energean has also found the time to secure a $180m reserve-based lending facility from several development banks to fund new wells in the Prinos basin in Greece, further supported by the extension of an off-take agreement with BP to 2025.

Safe to say, 2017 results are somewhat backward facing, even if the period laid the groundwork for the heady run of corporate developments. Crucial to this all – and to the willingness of investors including Hurricane Energy (HUR) backer Kerogen Capital, to open their wallets – was the signing of a 16-year gas supply agreement with 12 Israeli power producers.

Analysts, including Morgan Stanley, Citi, Stifel and RBC, are blocked from publishing research until a blackout period ends on 26 April.

ENERGEAN (ENOG)   
ORD PRICE:470pMARKET VALUE:£718m
TOUCH:459-470p12-MONTH HIGH:475pLOW: 410p
DIVIDEND YIELD:nilPE RATIO:47
NET ASSET VALUE:42¢*NET DEBT:22%
Year to 31 DecTurnover ($m) Pre-tax profit ($m)Earnings per share (¢)Dividend per share (¢)
201425.7-3.9n/anil
201518.6-28.8n/anil
201639.7-49.9-54.0nil
201757.823.714.0nil
% change+45---
Ex-div:na   
Payment:na   
£1=$1.40. *Prior to IPO, fundraising, RBL signing, $1.3bn facility