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  5. MER: Please comment on 2nd results. [Meren Energy Inc.]
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Q: Please comment on 2nd results.

Thank you
Asked by JACK on August 19, 2025
5i Research Answer:

EPS of (nil) slightly beat estimates; Revenue of $69M missed estimates of $100.7M. EBITDA beat estimates nicely. Meren Energy's strong operational delivery led it to narrow full-year production guidance, though easing cash flow and earnings forecasts reflect a more-subdued commodity backdrop for 2H. Still, management has delivered a third consecutive $25 million dividend, equating to $0.0371 per share, or a 12% annual yield. Its Akpo/Egina drilling campaign may resume in 2026, with a test of the 144 million-barrel near-field exploration prospect Akpo East. The development concept for Venus, Meren's multi-billion-barrel light-oil discovery (3.8% stake) offshore Namibia envisions 40 subsea wells with a tieback to a 160,000 barrels-per-day production vessel. A final investment decision is expected in 1H26, which would represent a critical and transformational milestone for Meren. The stock remains very cheap on valuation and certainly has potential if things go well.