Q: Hi 5i Team - Could you provide an update on Valeura including your take on its Q2 report. Please include insider ownership and any recent activity, its potential for growth, and anything else you think is significant. I am not sure whether to continue holding (small position) or take profits.
Thanks.
Thanks.
5i Research Answer:
VLE is now $809M market cap, up 5% for the year and trading at 6.5X earnings. In the Q2, EPS of 5c missed estimates of 11.4c; revenue of $129.2M beat estimates of $116.9M. EBITDA of $62.4M beat estimates by 5%. Oil production was averaged 21,400 b/d. Cash is $242M with no debt. Current production is 23,150 b/d up 8%. It has made a 'go' decision on the Wassana field and has started construction. There are risks here, but with the very strong balance sheet and very low valuation, we would be comfortable continuing to hold a small position.