broker note 0.20p target20 Oct 2017 13:47
Andalas Energy and Power (ADL)
Beaufort Securities
8 hours ago
Andalas Energy & Power (ADL.L, 0.05p) - Speculative Buy
Andalas has signed a (24-month) memorandum of understanding with Pertamina Power Indonesia and Siemens AG. The agreement is to develop a gas to power operation at the Pupsa field in Sumatra and includes binding provisions relating to exclusivity, costs and the joint pursuit of the project.
Our View: This news demonstrates the reality of Andalas� Indonesian gas to power activities and the credibility of its management team. Siemens has broad Indonesian power experience and will bring financial muscle and expertise to the consortium. Andalas� partners now include Pertamina (279 in global Fortune 500), Siemens (� 100b market cap) and PT PP Persero (US$1.4b market cap). We have a Speculative Buy recommendation and 0.2p price target.
Beaufort Securities acts as corporate broker to Andalas Energy & Power plc