RE: Broker notes13 Nov 2023 10:05
GOVERNMENT APPROVAL LANDS
In a corporate update this morning, Afentra (AET) announced Government approval of the Sonangol acquisition clearing a key regulatory hurdle in the consolidation of its ownership in Block 3/05, offshore Angola. Alongside this news, the company reiterated that it expects to complete both the Sonangol and Azule Energy transactions by year-end and unveiled specific details around the improved fiscal terms on Block 3/05. We have adjusted our model to reflect the fiscal amendments, as well as the latest Brent forward curve, yielding a ~24% increase in our Total NAV and a ~12% upgrade in aggregate FY24-25e EBITDA (to US$125m, 0.9x EV). Noting increased visibility around deal completion and the marked uplift in asset value, we reiterate our BUY stance with a revised target price of 75p (vs.