Q: Please comment on first quarter results.
Is the dividend sustainable.
How is the Akpo project looking.
Thank you
Is the dividend sustainable.
How is the Akpo project looking.
Thank you
5i Research Answer:
EPS of a loss of 6c missed estimates of +1c; revenue of $114.3M missed estimates of $124.4M. EBITDA of $77.6M missed estimates by 14%. 12-month payout ratio is 51%. The dividend is likely OK barring a collapse in commodity prices. The company remains net debt-free with $140M cash which provides a cushion. The loss reflects a hedging chage and is non-cash. Production was 28,400 b/d and guidance for the year was affirmed. The Akpo restart is progressing and will be the first well in the upcoming season. Production is expected in 2027.