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Hurricane hoping for a storm-less 2018

Hurricane Energy 2 November 2017 Update
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Hurricane Energy

Hurricane hoping for a storm-less 2018

Company update

Oil & gas

2 November 2017

Price

29.75p

Market cap

£583m

Net cash (£m) at 31 December 2017e including convertible debt

236m

Shares in issue (ex convert)

1,959m

Free float

53%

Code

HUR

Primary exchange

AIM

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

(8.5)

0.9

(23.2)

Rel (local)

(9.3)

(0.3)

(30.1)

52-week high/low

67.0

27.0p

Business description

Hurricane Energy is an E&P focused on UKCS fractured basement exploration and development. It owns 100% of the 523mmbbl (RPS 2P reserves plus 2C resources) Lancaster oil discovery, West of Shetland.

Next events

CPR

End 2017

Analysts

Sanjeev Bahl

+44 (0)20 3077 5700

Elaine Reynolds

+44 (0)20 3077 5713

Hurricane Energy is a research client of Edison Investment Research Limited

Investor focus is understandably on the execution of Hurricane’s Lancaster EPS development. First oil from Lancaster will complete the transition from explorer to producer and unlock a stream of cash flow that management can direct towards appraisal, full field development or shareholder returns. In this note, we look at progress made to date and the potential for farm-down of the Greater Lancaster Area (GLA) and Greater Warwick Area (GWA) to fund further appraisal ahead of full field development. Our updated RENAV stands at 79p/share, down from 103p/share, reflecting a recent reduction in our long-term (2022) oil price assumption from $80/bbl to $70/bbl.

Year end

Revenue
(£m)

EBITDA
(£m)

Operating
cash flow (£m)

Capex
(£m)

Net cash (£m)

12/15

0

(5.4)

(2.6)

(3.4)

9.9

12/16

0

(6.5)

(4.1)

(46.8)

82.2

12/17e

0

(7.2)

(5.6)

(71.2)

236.1

12/18e

0

(7.2)

(18.0)

(138.4)

79.7

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Lancaster EPS progressing to schedule

To date, Lancaster EPS contract award and development progress remains in line with management expectations. We flag that the 2018 summer weather window will remain critical in order to ensure Hurricane can meet a mid-2019 first oil. Edison continues to use capital (+10%) and schedule (+6-9 months) contingencies over and above management guidance to reflect this uncertainty. Releasing this contingency would drive our core Lancaster valuation up from 64p/share to 69p/share.

GLA farm-down options

Management continues to look at options in order to farm down the wider resource base in order to fund further appraisal and ultimately full field development. We believe this could materialise in several different forms, including a two-stage farm-down process in order to accelerate appraisal and utilise available drilling capacity West of Shetland in 2018/2019. We currently assume full field development is funded via farm-out and we assume a farminee IRR of 20%, and on this basis Hurricane retains a 42% carried interest in the GLA and GWA.

Valuation: Impact of lower long-term oil price

Our total risked NAV falls from 103p/share to 79p/share as we see greater dilution in GLA/GWA working interest under a farm-down scenario (farminee 20% IRR) in a lower oil price environment – we assume a $70/bbl long-term (2022) oil price (vs $80/bbl before). As would be expected, our valuation is sensitive to both oil price and cost of capital assumptions; hence, we provide sensitivities to both within this note.

Lancaster EPS progressing to schedule

In recent weeks, Hurricane has released several updates relating to contractual and development progress at the Lancaster EPS. First oil remains on track for H119; however, with several weather-dependent components of work scheduled for the summer of 2018, there is inevitably a risk that supply chain interruptions or extraordinary weather could lead to a delay, despite planned contingencies. Below, we look at EPS progress to date, schedule and cost risk and potential impact on valuation (we cover EPS subsurface and operational risks in our note published on 16 May 2017).

Key milestones delivered to date:

Hurricane Energy has taken final investment decision (FID) on the EPS development and the UK government has approved the Lancaster EPS field development plan (FDP).

The ‘Aoka Mizu’ FPSO arrived at dry dock on 30 September 2017.

Agreements effective with Bluewater Energy Services for upgrade, lease and operation of the ‘Aoka Mizu’ FPSO.

Rig contract signed with Transocean to complete previously drilled horizontal EPS production wells 205/21a-6 and 205/21a-7Z.

Fabrication orders have been placed with TechnipFMC for SURF and SPS.

Exhibit 1: EPS status and timeline

Source: Hurricane Energy

Mitigating capex risk through contractual arrangements

Hurricane has mitigated capex risk through contractual arrangement with over 75% of capex spend committed on a lump sum basis, and the remainder being largely reimbursable. A key component of the fixed price, lump-sum contract with Bluewater is for the Aoka Mizu FPSO vessel upgrade, buoy fabrication and pre-operational work prior to final project acceptance. To date, there have been limited variation orders, giving us some comfort that the lump-sum order is suitably specified.

Some reimbursable contract risk remains ($98m of the total capex budget of $467m) and largely comprises day-rate-linked items, including the completion of the two producers and installation work (diver vessels, support vessels and heavy-lift vessels). Hurricane includes some weather-related contingency in its $467m capex cost estimate – we include an additional 10% capex cost contingency to reflect potential weather-related delays and scope variations in light of recent North Sea execution mishaps.

Schedule risks and 2018 summer weather window

Hurricane’s EPS project schedule (Exhibit 1) highlights several critical items planned for the 2018 summer weather window (March through to early October 2018). Management remains confident in the development plan, and have built-in weather contingencies such that only extreme weather patterns in summer 2018 would have schedule impact. Nevertheless, we believe an extended period of adverse weather, including seasonally anomalous wave heights during the summer weather window, could potentially lead to a start-up delay. Summer 2018 weather critical items include the items below:

1.

re-entry and completion of 6 & 7z wells

2.

boulder clearance

3.

mooring system clearance

4.

SURF installation

5.

FPSO arrival and hook-up

Our conservative EPS assumptions – additional contingency to be released over time

In our base valuation, we include an additional 10% capex cost contingency above Hurricane’s forecast of $467m and assume first oil in Q120, relative to Hurricane guidance of Q219. If management continues to track internal forecasts of time and cost schedule, we expect to release this additional contingency built in to our NAV estimate and forecasts.

Edison’s base case Lancaster EPS standalone valuation (including cash and net of overheads) stands at 64p/share. On release of the additional contingency built in to our forecasts, this has the potential to rise to 69p/share.

Exhibit 2: Lancaster EPS assumed production profile

Exhibit 3: Lancaster EPS free cash flow profile

Source: Edison Investment Research

Source: Edison Investment Research

Exhibit 2: Lancaster EPS assumed production profile

Source: Edison Investment Research

Exhibit 3: Lancaster EPS free cash flow profile

Source: Edison Investment Research

Hurricane currently has flaring approvals in place to cover the EPS phase; however, if gas to oil ratio is higher than predicted, or if application for extended flaring consents are not approved beyond management may elect to drill a gas injection well. We conservatively now include gas injection in our base case EPS valuation (in 2022) at a cost of $60m to cover well costs and compression capex.

GLA/GWA appraisal options

We expect further details to be released on GLA/GWA resource upside once Hurricane publishes an updated CPR at the end of 2017. Ahead of CPR publication, management is looking at options to appraise the company’s wider asset base in order to reduce resource uncertainty.

Management estimates that a further five appraisal wells could be required in order to define the GLA/GWA resource base; assuming similar costs to the 2016 well programme, we estimate that the total appraisal programme would have an approximate gross cost of US$350m.

Hurricane’s options for funding this appraisal programme include a combination of the below:

Organic cash generation from Lancaster EPS

equity financing

debt financing

appraisal farm-out

combined appraisal and full field development farm-out

In our view, a farm-out is the most likely source of capital and this could be structured in several forms, including multiple farm-outs, a combined appraisal and development farm-down or a farm-out with payments contingent on appraisal/EPS success.

We currently model full field development of Lancaster, making the assumption that Hurricane farms down in exchange for a full cost carry through to first oil in 2026. In this scenario, the modelled farm-down implies a 20% cost of capital (ie the farminee generates an IRR of 20%) with Hurricane releasing 58% equity interest in the asset. Our farm-out calculations assume our base case oil price assumptions, which follow EIA oil price projections for the next two years ($50.8/bbl 2017 and $51.6/bbl 2018 rising to $70/bbl by 2022). The implied cost of capital from the farm-in is broadly in line with historical sector E&P farm-in transactions, which typically range from 15% to 25%.

We also assume similar equity dilution and funding terms for the development of Halifax and Lincoln (including appraisal costs) in our analysis, leaving Hurricane with a reduced working interest across the entire asset base of 42% (from 100%). We have left these underlying assumptions unchanged in our latest valuation; however, we expect to update these once we have more clarity on GLA/GWA resources, development concepts and costs or an agreed farm-out scenario.

Exhibit 4: GLA and GWA resources

Source: Edison Investment Research

Valuation

Our valuation below is updated to reflect our latest oil price assumptions, which use EIA short-term forecasts (last published $50.8/bbl in 2017 and $51.6/bbl in 2018) trending to $70/bbl Brent by 2022. A lower long-term (2022 onwards) oil price assumption (reduced from $80/bbl long term) has a negative impact on our asset cash flow forecasts, as well as the impact of working interest dilution through farm-out. Under our new commodity price scenario, we estimate that Hurricane would retain just 42% of GLA full field development post farm-down (compared to a previously estimated 49%).

Exhibit 5: Change in valuation post oil price reduction

Change in valuation

Old (p/share)

New (p/share)

Change %

Core (Lancaster EPS +cash-SG&A)

39

33

-15%

Core+Contingent (inc Lancaster full field development - FFD)

81

64

-21%

Total risked NAV (inc GLA)

103

79

-23%

Source: Edison Investment Research

A breakdown of our valuation is shown in the table below. Core valuation (Lancaster EPS plus cash and net of SG&A) stands at 33p/share. This rises to 64p/share when including Lancaster FFD and 79p/share including risked value for GLA and GWA upside.

Exhibit 6: Hurricane Energy base case valuation table

 

 

 

Recoverable reserves

Net risked

Value per share

Asset

Country

Diluted WI

CCoS

Gross

Net

NPV/boe

value

Risked

NOSH*: 2401.5m

 

%

%

mmboe

mmboe

$/boe*

$m

p/share

Net (debt)/cash YE17 ex convert (assumed conversion)

100%

100%

587

18.8

SG&A (2 years)

100%

100%

-15

-0.5

Lancaster EPS - 10y

UK

100%

90%

62

62

8.2

461

14.8

Core NAV

 

 

 

 

 

 

1,033

33.1

Contingent

Lancaster FFD (post-EPS)

UK

42%

73%

462

194

6.8

960

30.8

Contingent RENAV

 

 

 

462

194

 

960

30.8

Lincoln/Warwick

 

42%

48.8%

250

105

5.0

253

8.1

Halifax

 

42%

45.0%

250

105

5.0

234

7.5

Total inc exploration RENAV

 

 

 

962

404

 

2,481

79.5

Source: Edison Investment Research. Note: *Number of shares assuming convertible bond conversion.

Our valuation remains highly sensitive to key inputs such as oil price and cost of capital and suggests that the market is valuing the Lancaster EPS phase based on a $65-70/bbl long-term oil price assuming Edison capex/schedule assumptions, excluding any value for further phases of development. In the short term, the focus is likely to remain on EPS project execution prior to further detail on GLA and GWA resource upside in a CPR to publish towards the end of 2017. A catalyst for a re-rating could include a GLA/GWA appraisal or development farm-out.

Exhibit 7: Valuation sensitivity to oil price (Lancaster only)

Exhibit 8: RENAV sensitivity to WACC %*

Source: Edison Investment Research

Source: Edison Investment Research. *Note value of cash pile in NAV does not decline with WACC.

Exhibit 7: Valuation sensitivity to oil price (Lancaster only)

Source: Edison Investment Research

Exhibit 8: RENAV sensitivity to WACC %*

Source: Edison Investment Research. *Note value of cash pile in NAV does not decline with WACC.

Exhibit 9: Total risked NAV valuation sensitivity to long-term oil price (from 2022) and discount rate %*

50

60

70 (base case)

80

90

10.0%

71

87

104

120

137

12.5% (base case)

55

67

79

91

104

15.0%

43

53

62

72

81

17.5%

35

43

50

58

65

Source: Edison Investment Research. *Note farm-out terms are not dynamic but static in this sensitivity.

Financials

Short-term cash flow and balance sheet items are driven by investment in the Lancaster EPS prior to first oil, which Edison models in 2020. Hurricane is fully funded for the EPS phase with contingency based on current capex forecasts; however, further funding would be required in order to accelerate the appraisal of GLA in 2018/2019. The total gross cost of a five-well programme could be c $350m and is yet to be funded.

Exhibit 10: Short-term cash flow projections

Exhibit 11: Net cash and gearing

Source: Edison Investment Research

Source: Edison Investment Research

Exhibit 10: Short-term cash flow projections

Source: Edison Investment Research

Exhibit 11: Net cash and gearing

Source: Edison Investment Research

Exhibit 12: Financial summary

 

 

£000s

2016

2017e

2018e

2019e

2020e

Dec

 

 

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

0

0

0

0

142,973

Operating Expenses

(6,500)

(7,230)

(7,230)

(7,230)

(3,615)

EBITDA

 

 

(6,500)

(7,230)

(7,230)

(7,230)

139,358

Operating Profit (before amort. and except.)

 

(6,540)

(7,325)

(7,325)

(7,325)

108,285

Exploration write-off

0

0

0

0

0

Exceptionals

0

0

0

0

0

Other

0

0

0

0

0

Operating Profit

(6,540)

(7,325)

(7,325)

(7,325)

108,285

Net Interest

1,839

1,599

(10,804)

(11,230)

(5,789)

Profit Before Tax (norm)

 

 

(4,701)

(5,726)

(18,129)

(18,555)

102,496

Profit Before Tax (FRS 3)

 

 

(4,701)

(5,726)

(18,129)

(18,555)

102,496

Tax

5,365

0

0

0

0

Profit After Tax (norm)

664

(5,726)

(18,129)

(18,555)

102,496

Profit After Tax (FRS 3)

664

(5,726)

(18,129)

(18,555)

102,496

Average Number of Shares Outstanding (m)

889.5

1,581.0

1,959.2

1,959.2

1,959.2

EPS - normalised (p)

 

 

0.1

(0.4)

(0.9)

(0.9)

5.2

EPS - normalised and fully diluted (p)

 

0.1

(0.4)

(0.9)

(0.9)

5.2

EPS - (IFRS) (p)

 

 

0.1

(0.4)

(0.9)

(0.9)

5.2

Dividend per share (p)

0.0

0.0

0.0

0.0

0.0

Gross Margin (%)

NA

NA

NA

NA

97.5

EBITDA Margin (%)

NA

NA

NA

NA

97.5

Operating Margin (before GW and except.) (%)

NA

NA

NA

NA

75.7

BALANCE SHEET

Fixed Assets

 

 

247,621

318,767

457,102

641,942

610,870

Intangible Assets

245,146

245,146

245,146

245,146

245,146

Tangible Assets

15

71,161

209,496

394,336

363,264

Investments

2,460

2,460

2,460

2,460

2,460

Current Assets

 

 

86,152

415,871

259,407

56,012

56,012

Stocks

359

359

359

359

359

Debtors

5,893

5,893

5,893

5,893

5,893

Cash

79,900

409,619

253,155

49,760

49,760

Other

0

0

0

0

0

Current Liabilities

 

 

(21,341)

(21,341)

(21,341)

(21,341)

(21,341)

Creditors

(21,341)

(21,341)

(21,341)

(21,341)

(21,341)

Short term borrowings

0

0

0

0

0

Long Term Liabilities

 

 

(4,829)

(180,648)

(180,648)

(180,648)

(47,080)

Long term borrowings

0

(175,819)

(175,819)

(175,819)

(42,251)

Other long term liabilities

(4,829)

(4,829)

(4,829)

(4,829)

(4,829)

Net Assets

 

 

307,603

532,649

514,520

495,965

598,461

CASH FLOW

Operating Cash Flow

 

 

(4,115)

(5,631)

(18,034)

(18,460)

133,568

Net Interest

0

0

0

0

0

Tax

0

0

0

0

0

Capex

(46,773)

(71,241)

(138,430)

(184,935)

0*

Acquisitions/disposals

0

0

0

0

0

Financing

121,338

230,772

0

0

0

Dividends

0

0

0

0

0

Net Cash Flow

70,450

153,900

(156,464)

(203,395)

133,568

Opening net debt/(cash)

 

 

(9,941)

(82,230)

(236,130)

(79,666)

123,729

HP finance leases initiated

0

0

0

0

0

Other

1,839

0

0

0

0

Closing net debt/(cash)

 

 

(82,230)

(236,130)

(79,666)

123,729

(9,839)

Source: Company data, Edison Investment Research. Note: *FFD funded through farm-out and cost carry.

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2017 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Hurricane Energy and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2017. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority. Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2017 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Hurricane Energy and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.
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Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 12, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

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