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Maha Energy

Maha Energy

Oil and gas producer

Maha Energy is an oil and producer operating two fields in Brazil (Tie and Tartaruga). It has minor operations in the LAK field in the US. Its strategy is a combination of production, pursuing upside in its portfolio from production drilling and appraisal, and modest near-field exploration activity. It also looks for growth through M&A with a broad mandate, focusing on onshore oil and gas. Its main operation is enhanced oil recovery (EOR) through the development of proven hydrocarbon reserves.

Contingent on positive results from testing operations, and an expected renewal of the Tartaruga Block concession, a full field development could increase the commercial lifetime of the field and utilisation of the reservoir. With its robust capital structure, the company is also well-positioned for more M&A to diversify its operations. Also, Lak Ranch is not included in our valuation, providing interesting opportunities for our estimates.

Maha Energy is exposed to adverse changes in oil and gas prices. The functional currencies are USD, SEK and BRL, while the trading currency is SEK, i.e. it is exposed to adverse currency fluctuations. The company is also exposed to its contractors’ ability to execute projects according to the schedule and on budget, including infrastructure in place and offtake capacity, with limited diversification between assets. Operating in several countries, with various political and regulatory regimes, the company is exposed to adverse changes in regulatory and political regimes.

USDm 2020 2021e 2022e
Sales 33 78 94
Sales growth (%) -31,1 134,7 20,2
EBITDA 17 56 71
EBITDA margin (%) 51,3 71,6 75,9
EBIT adj -10 47 59
EBIT adj margin (%) -28,9 59,8 63,3
Pretax profit -14 39 51
EPS rep -0,1 0,31 0,4
EPS growth (%) -153,7 413,4 30,5
EPS adj 0,1 0,31 0,4
DPS 0 0 0
EV/EBITDA (x) 12,5 2,8 1,5
EV/EBIT adj (x) -22,3 3,3 1,8
P/E (x) -18,7 4,7 3,6
P/E adj (x) 17,8 4,7 3,6
EV/sales (x) 6,4 2 1,1
FCF yield (%) -2,7 13,8 31
Dividend yield (%) 0 0 0
Net IB debt/EBITDA 1,7 0 -0,7
Lease adj. FCF yield (%) -2,7 13,8 31
Lease adj. ND/EBITDA 1,7 0 -0,7
USDm 2020 2021e 2022e
Sales 33 78 94
COGS -16 -22 -23
Gross profit 17 56 71
Other operating items 0 0 0
EBITDA 17 56 71
Depreciation on tangibles -6 -9 -12
Depreciation on intangibles 0 0 0
EBITA 11 47 59
Goodwill impairment charges 0 0 0
Other impairment and amortisation -21 0 0
EBIT -10 47 59
Other financial items 1 0 0
Net financial items -4 -8 -8
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit -14 39 51
Tax 3 -6 -8
Net profit -10 33 44
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders -10 33 44
EPS -0,1 0,31 0,4
EPS Adj 0,1 0,31 0,4
Total extraordinary items after tax 0 0 0
Tax rate (%) -25,4 -15,1 -14,8
Gross margin (%) 51,3 71,6 75,9
EBITDA margin (%) 51,3 71,6 75,9
EBITA margin (%) 34,4 59,8 63,3
EBIT margin (%) -28,9 59,8 63,3
Pretax margin (%) -41,4 49,6 54,6
Net margin (%) -30,9 42,1 46,6
Growth rates Y/Y 2020 2021 2022
Sales growth (%) -31,1 134,7 20,2
EBITDA growth (%) -51,4 227,1 27,5
EBIT growth (%) -132,6 586 27,2
Net profit growth (%) -152,2 419,9 32,8
EPS growth (%) -153,7 413,4 30,5
Profitability 2020 2021 2022
ROE (%) -14,3 42,8 36,4
ROE Adj (%) 15 42,8 36,4
ROCE (%) -8,3 37,3 33,6
ROCE Adj(%) 11,6 37,3 33,6
ROIC (%) -7,9 47,4 54,2
ROIC Adj (%) -7,9 47,4 54,2
Adj earnings numbers 2020 2021 2022
EBITDA Adj 17 56 71
EBITDA Adj margin (%) 51,3 71,6 75,9
EBITA Adj 11 47 59
EBITA Adj margin (%) 34,4 59,8 63,3
EBIT Adj -10 47 59
EBIT Adj margin (%) -28,9 59,8 63,3
Pretax profit Adj 7 39 51
Net profit Adj 11 33 44
Net profit to shareholders Adj 11 33 44
Net Adj margin (%) 32,4 42,1 46,6
Depreciation and amortisation -6 -9 -12
Of which leasing depreciation 0 0 0
EO items 0 0 0
Impairment and PPA amortisation -21 0 0
EBITDA lease Adj 17 56 71
EBITDA lease Adj margin (%) 51,3 71,6 75,9
Leasing payments 0 0 0
USDm 2020 2021e 2022e
Short-term debt 36 0 0
Accounts payable 20 20 20
Other current liabilities 1 1 1
Total liabilities and equity 124 197 240
Net IB debt 29 -1 -50
Net IB debt excl. pension debt 29 -1 -50
Capital invested 75 92 94
Working capital -17 -17 -17
EV breakdown 2020 2021 2022
Market cap. diluted (m) 184 155 157
Net IB debt Adj 29 -1 -50
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity 0 0 0
EV 214 153 107
Capital efficiency (%) 2020 2021 2022
Total assets turnover (%) 27,8 56 47,5
Capital invested turnover (%) 36,6 83,7 100,3
Capital employed turnover (%) 31,6 67,7 67,6
Inventories / sales (%) 0 0 0
Customer advances / sales (%) 0 0 0
Payables / sales (%) 41,1 29,1 21,7
Working capital / sales (%) -23,9 -21,4 -17,8
Financial risk and debt service 2020 2021 2022
Net debt / equity (%) 52,8 -1,3 -35,4
Net debt / market cap (%) 19,9 -0,9 -31,8
Equity ratio (%) 53,9 55,9 64,7
Net IB debt adj. / equity (%) 52,8 -1,3 -35,4
Current ratio (%) 20,1 304,3 493,6
EBITDA / net interest (%) 342 703,6 875,1
Net IB debt / EBITDA (%) 172,2 -2,4 -70,6
Interest cover (%) 229,1 588 730
EBITDA 17 56 71
Net financial items -4 -8 -8
Paid tax -3 0 0
Non-cash items 2 0 0
Cash flow before change in WC 12 48 63
Change in WC 16 0 0
Operating cash flow 28 48 63
CAPEX tangible fixed assets -20 -26 -14
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals -13 0 0
Free cash flow -5 21 49
Dividend paid 0 0 0
Share issues and buybacks 0 10 0
Other non cash items -18 0 0
Decrease in net IB debt -21 17 53
Balance Sheet (USDm) 2020 2021 2022
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets -21 -21 -21
Tangible fixed assets 102 119 122
Other fixed assets 10 10 10
Fixed assets 91 109 111
Inventories 0 0 0
Receivables 5 5 5
Other current assets 0 0 0
Cash and liquid assets 7 62 103
Total assets 103 175 219
Shareholders equity 56 98 142
Minority 0 0 0
Total equity 56 98 142
Long-term debt 0 60 53
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 5 13
Other long-term liabilities 11 11 11
Lease liability amortisation 0 0 0
Other intangible assets -21 -21 -21
Right-of-use asset 0 0 0
Total other fixed assets 10 10 10
Leasing liability 0 0 0
Total other long-term liabilities 11 17 24
Net IB debt excl. leasing 29 -1 -50
Net IB debt / EBITDA lease Adj (%) 172,2 -2,4 -70,6
USDm 2020 2021e 2022e
Shares outstanding adj. 101 107 109
Fully diluted shares Adj 101 107 109
EPS -0,1 0,31 0,4
Dividend per share Adj 0 0 0
EPS Adj 0,1 0,31 0,4
BVPS 0,55 0,91 1,29
BVPS Adj 0,76 1,11 1,49
Net IB debt / share 0,3 0 -0,5
Share price 1,45 1,44 1,44
Market cap. (m) 147 155 157
Valuation 2020 2021 2022
P/E -18,7 4,7 3,6
EV/sales 6,44 1,97 1,15
EV/EBITDA 12,5 2,8 1,5
EV/EBITA 18,7 3,3 1,8
EV/EBIT -22,3 3,3 1,8
Dividend yield (%) 0 0 0
FCF yield (%) -2,7 13,8 31
P/BVPS 3,32 1,58 1,11
P/BVPS Adj 2,41 1,3 0,97
P/E Adj 17,8 4,7 3,6
EV/EBITDA Adj 12,5 2,8 1,5
EV/EBITA Adj 18,7 3,3 1,8
EV/EBIT Adj -22,3 3,3 1,8
EV/cap. employed 2,3 1 0,6
Investment ratios 2020 2021 2022
Capex / sales 60,9 34 15,1
Capex / depreciation 359,6 289,5 119,7
Capex tangibles / tangible fixed assets 19,8 22,2 11,6
Capex intangibles / definite intangibles 0 0 0
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 5,5 7,7 9,7
Lease adj. FCF yield (%) -2,7 13,8 31

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Main shareholders - Maha Energy

Main shareholders Share capital % Voting shares % Verified
Kvalitena 21.0 % 21.0 % 30 Sep 2020
Nerthus Investments LTD 8.2 % 8.6 % 31 Dec 2016
Banco BTG Pactual S.A. 6.8 % 6.8 % 6 May 2021
Avanza Pension 5.6 % 5.6 % 31 Mar 2021
Jonas Lindvall 4.4 % 4.4 % 31 Mar 2021
Ronald Panchuk 2.9 % 2.9 % 31 Dec 2019
Jesper Nörremark Mortensen 1.3 % 1.3 % 31 Mar 2021
Nordnet Pensionsförsäkring 0.9 % 0.9 % 31 Mar 2021
Stefan Sundkvist 0.7 % 0.7 % 31 Mar 2021
Harald Pousette 0.6 % 0.6 % 31 Mar 2021
Source: Holdings by Modular Finance AB

Insider list - Maha Energy

Name Quantity Code Date
Seth Lieberman + 89 000 SUBS 10 May 2021
Jonas Lindvall + 30 000 Received loan 16 Mar 2021
Anders Ehrenblad - 6 115 SELL 30 Dec 2020
Anders Ehrenblad - 93 885 SELL 29 Dec 2020
Sven Harald Knut Jansson Pousette - 35 000 SELL 28 Dec 2020
Sven Harald Knut Jansson Pousette - 37 000 SELL 23 Dec 2020
Sven Harald Knut Jansson Pousette - 20 228 SELL 22 Dec 2020
Sven Harald Knut Jansson Pousette - 73 430 SELL 14 Dec 2020
Anders Ehrenblad - 45 103 SELL 28 Sep 2020
Anders Ehrenblad - 9 100 SELL 25 Sep 2020

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