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Multi bagger opportunity

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ImthetxarbiInvested
Community Contributor

Published

September 24 2024

Updated

November 11 2024

Narratives are currently in beta

  • Deeply undervalued stock, as a result of a poor operational performance and comunication since de IPO.
  • Facing potential highly dilutive capital increase
  • I believe the stock is worth at least NOK 1,5 and it's likely to be a lot more.
  • Proven reserves that could generate more than USD 2.000 million revenues.
  • Great discount of value of reserves per share
  • Catalyzer: New CEO has a operational profile and is starting to obtain results.
  • Things to keep in mind:
    • High level of debt (380 million) See how do they refinance the company.
    • Outsider probably bought minority interest in the assets of the company, (25%+7%) for 217 USD million. This is a valuation of the assets of the company of 678 million, de debt is around 380 million plus pending payments to Petrobras of 153 USD million, leaves a valuation of 145 million, or 2,79 NOK per share.
    • IPO to Brazilian market. See if they are able to do it and how dilutive it will be.
    • See if they get an agreement with Petrobras to postpone the payment of 45 million at the end of the year.
    • See if Petrobras finally fixes pipelines so that they can sell their oil as VLSFO

How well do narratives help inform your perspective?

Disclaimer

The user Imthetxarbi has a position in OB:SEAPT. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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SEAPT

Seacrest Petroleo Bermuda
Fair Value
NOK 3.0
93.4% undervalued intrinsic discount
Imthetxarbi's Fair Value
Future estimation in
PastFuture-100m0100m200m300m400m201920202021202220232024202520262027Revenue US$407.4mEarnings US$36.7m
% p.a.
Decrease
Increase
Current revenue growth rate
28.97%
Oil and Gas revenue growth rate
6.38%
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