Analyst Comment6 Mar 2025 11:21
Angus Energy* (ANGS LN) 0.289p, Market Cap £13m: Upcoming catalysts expected to boost cash flow
• Angus reported FY24 results for the 12M ended September 30, with a ~10% y/y increase in oil and gas production generating £21.8m revenue and £10.8m EBITDA to end the period with £19.1m net debt.
• The Company reported a FY24 loss of £4.3m, which included the impact of legacy hedging and a non-cash impairment of £4.8m for the Brockham oil field (80% WI) due to lower-than-expected production rates.
• Work on the installation of the booster compressor is progressing with commissioning expected in late-March, which is expected to boost production and prolong the life of the onshore UK Saltfleetby Field (100% WI).
• The Company anticipates that the roll-off at end-June of historic hedges, set at less than 50% of current spot gas prices, will lead to a substantial improvement in cashflow and overall profits going forwards.
A significant year for Angus, which successfully refinanced the Company’s debt and achieved steady production at the flagship Saltfleetby gas field, as well as restarting production from the Brockham oil field.
The Company looks forward to the benefit of substantially higher free cashflows in 2H25 and following commissioning of the booster compressor will turn its intentions to drilling a fourth well at Saltfleetby to increase production.
Management is focused on maximising production from its existing reserves, maturing its gas storage project and advancing key development projects by expanding the Company’s footprint outside of the UK.
To this end, Angus commented it has created a strong team to look at inorganic opportunities that is in the process of identifying targets, mergers and development candidates.
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