When Energean (ENOG) listed in London in March 2018, some doubted the explorer-producer’s plan to turn the Karish and Tanin gas discoveries into major producing fields within three years. Today, those doubts are thinning, even as chief executive Mathios Rigas acknowledges that meeting the 2021 goal would amount to one of the fastest developments in the history of offshore drilling.
Full-year results help to explain the growing market optimism. In 2018, production from Energean’s legacy assets in Greece increased 45 per cent to 4,053 barrels of oil per day. Successful drilling helped to boost proven, probable and contingent reserves by 35 per cent. And a whopping $13bn (£9.8bn) of future revenues were secured through 12 gas sales agreements in Israel.
This year, capital expenditure will rise to as much as $860m, with up to $650m allocated for development works on offshore Israel leases. The impact on borrowings should be softened by cash flow from producing assets in Greece, where operating costs fell 29 per cent to $17.60 a barrel in 2018 and which should range between $14 and $17 per barrel this year.
Analysts at Peel Hunt forecast adjusted earnings of 6.7¢ a share this year, rising to 28.9¢ in 2020.
| ENERGEAN (ENOG) | ||||
| ORD PRICE: | 786p | MARKET VALUE: | £1.2bn | |
| TOUCH: | 779-788p | 12-MONTH HIGH: | 834p | LOW: 410p |
| DIVIDEND YIELD: | nil | PE RATIO: | 13 | |
| NET ASSET VALUE: | 540¢ | NET CASH: | £75.6m | |
| Year to 31 Dec | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2014^ | 25.7 | -3.9 | n/a | nil |
| 2015^ | 18.6 | -28.8 | n/a | nil |
| 2016^ | 39.7 | -49.9 | -54 | nil |
| 2017^ | 57.8 | 25.4 | 14 | nil |
| 2018 | 90.3 | 85.3 | 80 | nil |
| % change | +56 | +236 | +471 | - |
| Ex-div: | na | |||
| Payment: | na | |||
| ^Pre-IPO £1=$1.33 | ||||
