SDX Energy


£31.7m 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

SDX Energy delivered a strong performance over the first nine months of 2020 as production increased predominantly due to South Disouq continuing to perform ahead of expectation since coming onstream in late 2019. Production in Egypt was unaffected by COVID-19, while a few customer shut-ins in Morocco had returned to c 90% capacity by September 2020. The drilling programmes in both Egypt and Morocco were also successfully concluded, with highlights including the Sobhi discovery in South Disouq and a potential 233bcf in a further six prospects, together with confirmation of the extension of prospectivity to the north of the company’s core area in Morocco. Our mid-case RENAV valuation has increased to 45.0p/share (+11%) as we adjust our short-term oil price assumptions and revise our production and capex estimates.

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 5.3 1.0
2019A 53.2 34.4 (12.3) (1.5) N/A 0.6
2020E 37.9 26.2 7.2 3.9 5.1 0.6
2021E 44.0 32.2 16.1 7.6 2.6 0.6
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
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Oil & gas
Share price graph
Balance sheet
Forecast net cash (US$m) 11.8
Forecast gearing ratio (%) N/A
Price performance
Actual (4.6) (13.9) (29.6)
Relative* (3.7) (11.5) (15.5)
52-week high/low 66.5p/22.8p
*% relative to local index
Key management
Michael Doyle Chairman
Mark Reid CEO
Nicholas Box CFO

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