Maha Energy - Higher costs in Q4
EBITDA of USD 2.7m, below ABGSCe at USD 4.3m Miss driven by higher cost in the quarter Webcast at 16:00CET Higher costs in Q4 Maha reports Q4 production of 2,738boe/d in line with ABGSCe at 2,732boe/d. Revenues of USD 7.2m was in line with ABGSCe at USD 7.3m (no updated consensus figures). EBITDA of USD 2.7m was however below ABGSCe of USD 4.3m due both higher production cost (unit opex increased from USD 7.3/boe in Q3’20 to USD 12.3/boe Q4’20) and higher SG&A (increased from USD 1.4m in Q3’20 to USD 2.5m in Q4). The higher unit opex, is explained by low production volumes in the quarter as well as and activities.
The higher G&A can be explained by costs related to change of listing venue in Q4. As such, the cost miss in the quarter appears to be of a temporary nature. EBIT was negatively affected by a USD 21m impairment to the LAK Ranch heavy oil field in Wyoming, USA, as the company pre-announced on 4 February.
NIBD of USD 29.3m was a notch better than ABGSCe at USD 32.2m due to somewhat lower capex in the quarter. Limited granularity additional granularity on 2021 guidance In the Q4 report there was limited additional granularity on the 2021 guidance, as was laid out by the company on 4 February. As discussed in our fast comment 5 February, our estimates are largely in line with the company guidance.
Webcast today at 16:00CET Maha will host a Q4 webcast today at 16:00CET,.