Maha Energy
Maha Energy - Lower production guidance due to Covid-19 (ABG Sundal Collier)
2020-05-25 09:26
New production guidance in line with our estimates
Balance sheet appears robust
Q1 report due tomorrow
New production guidance in line with our estimatesIn a company update on Friday after close, Maha Energy revised its annual production guidance down from 5-5.5kboe/d to 4-5kboe/d. We estimate annual production of 4.3kboe/d, in line with the revised target. As previously communicated, gas costumers has temporarily shut down production, and limited capacity for redundant gas has consequently affected Maha’s oil production. In a company update from 20 of March, Maha revised capex guidance to USD 12-13m. However, as it is now is including a compression project at Tie (to reinject redundant gas) as well as contractual commitments at Illionois, the revised guidance is increased to USD 15.5m. We have in our current estimates USD 8m, with the difference being timing of wells and the two above mentioned initiatives.
Balance sheet appears robust
At year-end 2019, Maha had a NIBD of USD 8.2m. Maha highlights that it expects it has ability to fulfil all financial obligations at current oil prices, including the repayment of the SEK 300m (USD31m) bond outstanding with maturity in Q2’21. In our current estimates we see only minor refinancing gap when the bond matures.
Q1 report due tomorrow
Maha Energy is scheduled to report Q1 results tomorrow and will hold a presentation at 18:00 CET.
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