SDX Energy


£33.5m 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 announced that despite the challenging environment the oil and gas industry is facing, its Q120 results were positive with production above expectations at 8,061boed and net cash generated from operating activities at $6.3m. With c 90% of the company’s cash flow resulting from fixed-price gas contracts management is confident it can meet its 2020 expectations. In Morocco, testing of the LMS-2 well is expected in late Q3/early Q4 with a view to de-risking 10.9bcf of prospective resources. In Egypt, SDX disposed its 50% WI in the late-life North West Gemsa licence in July 2020 for $3m, of which $1.4m has been used to discharge the company’s liabilities on the licence, with the net $1.6m providing additional cash to strengthen the balance sheet. Our valuation stands at a core NAV of 33.8p/share and a RENAV of 40.7p/share, on inclusion of exploration potential upside.

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 6.6 1.2
2019A 53.2 34.4 (12.3) (1.5) N/A 0.8
2020E 40.7 23.3 2.6 1.2 20.8 0.8
2021E 42.0 28.0 8.2 3.6 6.9 0.8
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) 9.1
Forecast gearing ratio (%) N/A
Price performance
Actual 30.8 (38.3) (46.8)
Relative* 22.6 (18.0) (31.3)
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