Q: Can you please comment on latest earnings and outlook going forward. Buy, sell or hold. Thanks for all your guidance
5i Research Answer:
Q4 EPS was -12c vs estimates +15c; revenue $161.4M missed estimates of $162.4M. EBITDA of $70.1M missed estimates by 14%. Revenue fell 29%, largely on lower prices. Oil production declined 5%. Net cash is about $220M. Not a great result, especially with a production decline. But of course everything is different now with $100 oil. The stock is up 82% YTD and still remains cheap at 11x earnings. A higher risk partial BUY, but with the caveat that there will be a price correction if the war ends soon.