KrisEnergy: CLSA reinitiated coverage on KrisEnergy with a BUY rating and TP of $0.58/share.
The house expects KrisEnergy to increase its O&G production by a 25% 3-year CAGR, propelling it from the current loss-making situation to a PATMI of US$80m by 17CL.
With its current rights issue underwritten by Keppel, we expect a much stronger balance sheet, and see no further need to raise capital in the near term.
DCF valuation is based on a LT oil price of US$85/bbl, and includes a 10% exploration premium for future oil finds.
Key risks are low oil prices persisting and PE fund First Reserve’s need to sell-down in coming years.
No comments:
Post a Comment