SDX Energy


Market Cap£34.4m

Last Close 22.88p

SDX Energy is a North African E&P listed in Toronto and London. It has oil and gas production in Egypt and gas production in Morocco.

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Investment summary

SDX’s 2020 production was c 6,400boed, despite the challenging environment the oil and gas industry has been facing and ahead of guidance of 6,000–6,250boed. Guidance for 2021 is 5,620–5,920boed, reflecting expected downtime for planned maintenance in South Disouq. SDX continues to deliver strong cash generation, with c 90% of cash flow resulting from fixed-price gas contracts. Increasing cash flow is likely to be directed to reserves expansion but also provides the opportunity to return capital to shareholders from 2022. Nine wells are planned for drilling across Egypt and Morocco in 2021. SDX has highlighted the potentially high-impact Hanut prospect in South Disouq, which it estimates holds 139bcf of prospective recoverable resources and is due to be drilled in late Q221/early Q321. Capex guidance of US$25.0–26.5m in FY21 mainly relates to well costs for Hanut and the Ibn Yunus-1 development well. Our core NAV is 36.2p/share and RENAV is 45p/share.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 53.7 35.5 7.1 3.8 6.0 1.1
2019A 53.2 34.4 (12.3) (1.5) N/A 0.7
2020E 42.6 31.0 10.0 5.3 4.3 0.7
2021E 43.5 31.7 13.5 6.3 3.6 0.7
Industry outlook

SDX remains open to adding to its portfolio and sees Egypt as a natural market for consolidation, given the large number of small players. Its acquisition of Circle Oil’s Egyptian and Moroccan assets in early 2017 show that it is able to negotiate and complete transactions efficiently.

Last updated on 28/05/2019
Content on SDX Energy
SDX Energy – In an enviable position in the sector
Oil & gas | Update | 21 December 2020
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Share price graph
Balance sheet
Forecast net cash (US$m) 16.6
Forecast gearing ratio (%) N/A
Price performance
Actual 0.0 (2.9) (27.2)
Relative* (7.6) (9.2) (18.4)
52-week high/low 66.5p/22.8p
*% relative to local index
Key management
Michael Doyle Chairman
Mark Reid CEO
Nicholas Box CFO