SDX Energy


£46.6m market cap

22.88p last close

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.

Investment summary

In August 2019 SDX announced that it is making good progress to achieve its three medium-term strategic objectives of securing first gas at South Disouq in Q419, executing a successful 12-well drilling campaign in Morocco in 2019/20, and continuing with exploration drilling in South Disouq in 2020. In September 2019, SDX announced a drilling success with MSD-19 well in the West Gharib, following the positive result in the Rabul-7 well in June 2019. These wells will support 2019 production guidance. In October 2019 SDX announced the start of its drilling campaign in Morocco. Our RENAV valuation for SDX currently stands at 49.8p/share, while our core NAV (producing assets and South Disouq) is 45.0p/share.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 39.2 21.9 32.8 14.1 2.1 2.8
2018A 53.7 35.5 7.1 3.8 7.7 1.4
2019E 45.3 20.7 8.3 3.8 7.7 1.0
2020E 51.5 30.9 14.0 6.4 4.6 1.0
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
Oil & gas
Share price graph
Balance sheet
Forecast net cash (US$m) 4.9
Forecast gearing ratio (%) N/A
Price performance
Actual (25.4) (35.5) (63.2)
Relative* (22.6) (36.2) (60.7)
52-week high/low 66.5p/22.8p
*% relative to local index
Key management
Mark Reid CEO

Content on SDX Energy