Facts on Sumatec - you be the judge!!!

Facts on Sumatec - you be the judge!!!

FactsGuru
Publish date: Thu, 11 Jan 2018, 01:32 PM
FactsGuru
0 1
Following Message
Facts on Sumatec - you be the judge!!!
 
 
Since Reach Energy also operate in Kazak...i thought i have a quick look at their production situation and cash flow...
 
A glance at the cumulative revenue until 3quarters show that they have made a revenue around RM107,468,000...now if we normalized this to annual revenue this works to to about RM143,290,666. A look at their production level shows that they are producing on average 5000boepd.
Point#1: at the end of this year Sumatec would be producing at higher level then what Reach is doing right now!!!
 
Now assuming Sumatec has the same operational structure (which would be decent since both Reach and Suma operate in Kazak) at around 7500boepd Sumatec would be pushing a revenue close to...
=(7500/5000)xRM143million=RM214,935,999!!!
Sumatec is planning a bunch of corporate actions in order to remove the debt due to the Shipping business. At the end of that exercise, it is estimated that the number of shares (thru consolidation) would be at 1,014,626,000.
Point#2: Earnings or in this case revenue would be RM0.21.
 
So the key would be how much costs it would they be able to keep it down in order not to jeopardize EPS.
Point#3: Until now, i have not included the profits they will earn grom selling gas condensates. It is reported that this will be able to itself fund the operational costs of drilling and production. This mean EPS at RM0.21 would be a fair value.
 
Now being a pure E&P oil & gas company, it is very conservative to assume take a PER of 7x. At that estimation, it would make Sumatec's FV per share to be RM0.21x7=RM1.40.
 
NOW as a facts guru, i just present the facts....you be the judge!!!!!!!!!!!
Discussions
Be the first to like this. Showing 3 of 3 comments

Lukesharewalker

Have they been receiving money/ cash flow from the so called client. Or is it merely accruals

2018-01-11 13:38

supersaiyan3

Reach is not producing 5000 bpd. In addition, Reach sells gas also. Why don't you use q3 figure only. Haha.

2018-01-11 13:43

supersaiyan3

You are not presenting the facts lah.

2018-01-11 13:43

Post a Comment