After raising $460m (£354m) in its London listing, Energean Oil & Gas (ENOG) ended its half year to June with a strengthened balance sheet. Plans to develop the enormous Karish gas field offshore Israel are also on track. But half-year numbers also benefited from a 50 per cent rise in output from the legacy Greek operations.
In turn, that drove down operating costs and pushed the group to an operating profit of $10.2m, even if the timing of cargo shipments kept the top line flat. Including the one cargo shipment in the first half, around 38 per cent of this year’s sales have been hedged, at an average price of $69.39.
With Israel now the principal focus, such conservativism is understandable. By the end of 2018, construction will have started on the Karish FPSO facility, and will shortly be followed by an initial exploration well. The promise here is the de-risking and possible conversion of 7.5 trillion cubic feet of additional prospective resources, which would help bring the FPSO up to full capacity.
Prior to these results, which were affected by a $97m non-cash gain on derivative financial instruments, Stifel was forecasting a full-year adjusted pre-tax loss of $5.5m and a 3¢ loss per share, and a pre-tax profit of $26.3m and EPS of 12.9¢ in 2019.
| ENERGEAN OIL & GAS (ENOG) | ||||
| ORD PRICE: | 532p | MARKET VALUE: | £813m | |
| TOUCH: | 526-531p | 12-MONTH HIGH: | 600p | LOW: 410p |
| DIVIDEND YIELD: | nil | PE RATIO: | 6 | |
| NET ASSET VALUE: | 532¢ | NET CASH: | $167m | |
| Half-year to 30 Jun | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2017* | 26.8 | -4.4 | -19.0 | nil |
| 2018 | 26.3 | 82.1 | 81.0 | nil |
| % change | -2 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| £1=$1.30. *Pre-IPO figures. | ||||
