“Edison’s accessible and high-quality research gives us the opportunity to communicate an independent perspective of Tyman to a wide variety of potential stakeholders.”
Currency in GBP
Last close As at 09/06/2023
GBP0.00
▲ 0.04 (21.05%)
Market capitalisation
GBP7m
Research: Oil & Gas
Coro Energy has provided an update on both the disposal of its non-core Italian assets and its Bulu PSC acquisition offshore East Java. Coro has entered into a conditional sale and purchase agreement with Zenith Energy for the disposal of its entire Italian portfolio for a consideration of £3.9m paid in new Zenith Energy shares. An initial consideration of £0.4m will be paid on completion of the deal and the rest is subject to certain production targets. Coro also announced the parties in the Bulu PSC continue to progress the transfer of the 42.5% participating interest in the PSC to Coro. With the acquisition not completed by the 2 December 2019 long-stop date due to a delay in receipt of approvals, the parties are now negotiating a further six-month extension.
Written by
Carlos Gomes
Coro Energy |
Italian asset disposal and Bulu acquisition update |
Assets update |
Oil & gas |
4 December 2019 |
Share price performance
Business description
Analysts
Coro Energy is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||||||||
Coro Energy has provided an update on both the disposal of its non-core Italian assets and its Bulu PSC acquisition offshore East Java. Coro has entered into a conditional sale and purchase agreement with Zenith Energy for the disposal of its entire Italian portfolio for a consideration of £3.9m paid in new Zenith Energy shares. An initial consideration of £0.4m will be paid on completion of the deal and the rest is subject to certain production targets. Coro also announced the parties in the Bulu PSC continue to progress the transfer of the 42.5% participating interest in the PSC to Coro. With the acquisition not completed by the 2 December 2019 long-stop date due to a delay in receipt of approvals, the parties are now negotiating a further six-month extension.
Year-end |
Revenue |
EBITDA |
PBT* |
Cash from |
Net (debt)/ |
Capex |
12/18** |
0.0 |
(3.5) |
(3.5) |
(12.7) |
9.4 |
(1.0) |
12/19e |
0.0 |
(5.5) |
(8.1) |
(8.2) |
(12.6) |
(12.7) |
12/20e |
0.0 |
(4.6) |
(4.6) |
(4.6) |
(69.1) |
(51.9) |
Note: *PBT normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **FY18 actuals reported in euros; FY18 not yet restated in US$ and consequently FY18/19 estimated figures include some Edison assumptions.
Disposal of the Italian portfolio will allow Coro to focus on its South-East Asian assets. The initial £0.4m consideration will be settled through the issue of 6.7m new Zenith shares. The remaining £3.5m will be deferred, subject to the Italian portfolio achieving an average production of 100,000scm/d over four months. In the first six months of 2019, production averaged 40,000scm/d, but Zenith expects to reach 113,000scm/d following a series of interventions during the next six to nine months. Completion of the deal is conditional on the resolution being passed at the General Meeting and the approval of the Italian Ministry of Economic Development. The Italian assets net book value in H119 amounted to $1.8m.
Coro also announced that, although it was progressing the transfer of the 42.5% participating interest in the Bulu PSC, the receipt of approvals was delayed beyond the long stop date of 2 December 2019. The parties are negotiating a further six-month extension to the long-stop date to accommodate the additional time required for approvals to be received and intend to enter this extension as soon as is practicable.
|
|
Research: Healthcare
On 22 November 2019, RedHill held an investor and analyst day in New York with the focus on the two new products about to be launched in the US. Talicia and Aemcolo are to be launched imminently (Q419 and Q120 respectively) and could be major products for RedHill. From a commercial perspective, this makes 2020 a potentially transformative year for RedHill, and good sales uptake could be a positive catalyst for the stock. The recent strategic investment of $36.3m by Cosmo Pharmaceuticals means that RedHill has a comfortable cash position to ramp up its US salesforce to optimise the launch. Our valuation is slightly higher at $575m or $16.3 per ADS.
Get access to the very latest content matched to your personal investment style.
