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

SDX Energy (SDX) has announced the beginning of natural gas production from the South Disouq concession, onshore Egypt. The four discovery wells are connected and feeding the central processing facility (CPF) since 7 November and have produced at their expected rates of between 8–15mmscfd. The CPF achieved an average gross production rate of 23mmscfd of gas and 120bbld of condensate, equivalent to c 24mmscfed, and will gradually ramp up production aiming to achieve its targeted plateau gross production rate of 50mmscfed in Q120, in line with our estimates for 2020. South Disouq will result in a material increase to SDX cash flows going forward. 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 45.6 20.9 8.3 3.8 7.7 1.0
2020E 55.3 30.4 13.1 6.0 4.9 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) 5.1
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
Michael Doyle Chairman
Mark Reid CEO
Nicholas Box CFO

Content on SDX Energy