Press the button and be introduced to a new random company!

Introduce me >

Social media

facebook   Follow us on Twitter

Coverage

Tethys Oil

Tethys Oil

Send subscription Close

Oil and natural gas

Tethys Oil is an independent E&P company with its core operation in Oman. Tethys is the partner on Blocks 3&4, which produces ~13,000 boe/d net to Tethys before government take. It also has some onshore production in Lithuania.

Continued production increase from blocks 3&4 in Oman is the main opportunity for Tethys Oil, where positive reserve revisions will be an important factor for sustainability. Further, Tethys Oil has balance sheet flexibility to engage in M&A activity or distribute to shareholders.

The main risks to the Tethys Oil investment case is oil price, USDSEK, continued production growth and reserve replacement. Tethys has a very strong production track record from Blocks 3&4 in Oman, a halt in production growth will be negative for the company. Also, being a “one asset play” is not favourable.

Financials

USDm 2019 2020e 2021e
Sales 151 92 95
Sales growth (%) -4,1 -39,2 4
EBITDA 85 30 35
EBITDA margin (%) 56,3 32,9 36,9
EBIT adj 37 -18 -2
EBIT adj margin (%) 24,7 -20,2 -2,4
Pretax profit 38 -17 -2
EPS rep 1,05 -0,47 -0,04
EPS growth (%) -39,4 -144,7 90,4
EPS adj 1,05 -0,47 -0,04
DPS 0,79 0,2 0
EV/EBITDA (x) 2,8 4 4,2
EV/EBIT adj (x) 6,3 -6,5 -64,6
P/E (x) 8,7 -10,3 -107,5
P/E adj (x) 8,7 -10,3 -107,5
EV/sales (x) 1,6 1,3 1,5
FCF yield (%) 7,4 -13,3 -14,9
Dividend yield (%) 8,7 4,1 0
Net IB debt/EBITDA -0,9 -1,5 -0,6
USDm 2019 2020e 2021e
Sales 151 92 95
COGS -59 -62 -60
Gross profit 92 30 35
Other operating items -8 0 0
EBITDA 85 30 35
Depreciation on tangibles -48 -49 -37
Depreciation on intangibles 0 0 0
EBITA 37 -18 -2
Goodwill impairment charges 0 0 0
Other impairment and amortisation 0 0 0
EBIT 37 -18 -2
Other financial items 0 0 0
Net financial items 1 2 1
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit 38 -17 -2
Tax 0 0 0
Net profit 38 -17 -2
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders 38 -17 -2
EPS 1,05 -0,47 -0,04
EPS Adj 1,05 -0,47 -0,04
Total extraordinary items after tax 0 0 0
Tax rate (%) 0 0 0
Gross margin (%) 61,2 32,9 36,9
EBITDA margin (%) 56,3 32,9 36,9
EBITA margin (%) 24,7 -20,2 -2,4
EBIT margin (%) 24,7 -20,2 -2,4
Pretax margin (%) 25,2 -18,5 -1,7
Net margin (%) 25,2 -18,5 -1,7
Growth rates Y/Y 2019 2020 2021
Sales growth (%) -4,1 -39,2 4
EBITDA growth (%) -20,4 -64,4 16,4
EBIT growth (%) -38,7 -149,7 87,8
Net profit growth (%) -38,7 -144,7 90,4
EPS growth (%) -39,4 -144,7 90,4
Profitability 2019 2020 2021
ROE (%) 14 -6,4 -0,6
ROE Adj (%) 14 -6,4 -0,6
ROCE (%) 14,5 -6,4 -0,6
ROCE Adj(%) 14,5 -6,4 -0,6
ROIC (%) 17,9 -8,6 -1
ROIC Adj (%) 17,9 -8,6 -1
Adj earnings numbers 2019 2020 2021
EBITDA Adj 85 30 35
EBITDA Adj margin (%) 56,3 32,9 36,9
EBITA Adj 37 -18 -2
EBITA Adj margin (%) 24,7 -20,2 -2,4
EBIT Adj 37 -18 -2
EBIT Adj margin (%) 24,7 -20,2 -2,4
Pretax profit Adj 38 -17 -2
Net profit Adj 38 -17 -2
Net profit to shareholders Adj 38 -17 -2
Net Adj margin (%) 25,2 -18,5 -1,7
USDm 2019 2020e 2021e
EBITDA 85 30 35
Net financial items 1 2 1
Paid tax 0 0 0
Non-cash items 1 0 0
Cash flow before change in WC 86 32 36
Change in WC 4 0 0
Operating cash flow 89 32 36
CAPEX tangible fixed assets -65 -55 -53
CAPEX intangible fixed assets 0 0 0
Acquisitions and disposals 1 0 -9
Free cash flow 24 -23 -26
Dividend paid -29 -7 0
Share issues and buybacks 0 0 0
Other non cash items 6 0 0
Decrease in net IB debt 3 -31 -26
Balance Sheet (USDm) 2019 2020 2021
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 0 0 0
Tangible fixed assets 212 218 242
Other fixed assets 1 1 1
Fixed assets 212 219 243
Inventories 12 12 12
Receivables 0 0 0
Other current assets 0 0 0
Cash and liquid assets 76 45 19
Total assets 300 276 274
Shareholders equity 276 252 250
Minority 0 0 0
Total equity 276 252 250
Long-term debt 0 0 0
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 11 11 11
Short-term debt 0 0 0
Accounts payable 0 0 0
Other current liabilities 13 13 13
Total liabilities and equity 300 276 274
Net IB debt -76 -46 -20
Net IB debt excl. pension debt -76 -46 -20
Capital invested 211 217 242
Working capital -1 -1 -1
EV breakdown 2019 2020 2021
Market cap. diluted (m) 311 165 165
Net IB debt Adj -76 -46 -20
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 235 120 146
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 51 31,8 34,7
Capital invested turnover (%) 72,8 42,8 41,5
Capital employed turnover (%) 55,5 34,7 38
Inventories / sales (%) 10,1 13,4 12,9
Customer advances / sales (%) 0 0 0
Payables / sales (%) 0,3 0 0
Working capital / sales (%) 0,9 -0,7 -0,6
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) -27,6 -18,1 -7,8
Net debt / market cap (%) -27,7 -27,6 -11,8
Equity ratio (%) 92 91,3 91,3
Net IB debt adj. / equity (%) -27,6 -18,1 -7,8
Current ratio (%) 681,4 444,8 242,5
EBITDA / net interest (%) -10612,5 -1991,5 -5579,6
Net IB debt / EBITDA (%) -89,8 -151,2 -55,7
Interest cover (%) 2633,3 N/A N/A
USDm 2019 2020e 2021e
Shares outstanding adj. 34 34 34
Fully diluted shares Adj 34 34 34
EPS 1,05 -0,47 -0,04
Dividend per share Adj 0,8 0,2 0
EPS Adj 1,05 -0,47 -0,04
BVPS 8,05 7,34 7,29
BVPS Adj 8,05 7,34 7,29
Net IB debt / share -2,2 -1,3 -0,6
Share price 8 4,82 4,82
Market cap. (m) 275 165 165
Valuation 2019 2020 2021
P/E 8,7 -10,3 -107,5
EV/sales 1,56 1,31 1,53
EV/EBITDA 2,8 4 4,2
EV/EBITA 6,3 -6,5 -64,6
EV/EBIT 6,3 -6,5 -64,6
Dividend yield (%) 8,7 4,1 0
FCF yield (%) 7,4 -13,3 -14,9
P/BVPS 1,13 0,66 0,66
P/BVPS Adj 1,13 0,66 0,66
P/E Adj 8,7 -10,3 -107,5
EV/EBITDA Adj 2,8 4 4,2
EV/EBITA Adj 6,3 -6,5 -64,6
EV/EBIT Adj 6,3 -6,5 -64,6
EV/cap. employed 0,8 0,5 0,6
Investment ratios 2019 2020 2021
Capex / sales 43,1 60 55,5
Capex / depreciation 136,5 112,9 141,3
Capex tangibles / tangible fixed assets 30,8 25,2 21,8
Capex intangibles / definite intangibles N/A N/A N/A
Depreciation on intangibles / definite intangibles N/A N/A N/A
Depreciation on tangibles / tangibles 22,5 22,3 15,4

Equity research

Read earlier research

Media

Tethys Oil - Interview with CEO Magnus Nordin
Tethys Oil - Company presentation with CEO Magnus Nordin

Main shareholders - Tethys Oil

Main shareholders Share capital % Voting shares % Verified
Lansdowne Partners 10.0 % 10.0 % 6 Nov 2019
Tethys Oil AB 8.7 % 8.7 % 1 Apr 2020
Magnus Nordin 4.3 % 4.3 % 29 Feb 2020
JP Morgan Asset Management 2.9 % 2.9 % 29 Feb 2020
Avanza Pension 2.3 % 2.3 % 29 Feb 2020
Liontrust 2.3 % 2.3 % 29 Feb 2020
Jan Risberg 2.0 % 2.0 % 9 May 2019
Carl Erik Norman 1.7 % 1.7 % 29 Feb 2020
Nordnet Pensionsförsäkring 1.5 % 1.5 % 29 Feb 2020
Grandeur Peak Global Advisors, LLC 1.5 % 1.5 % 31 Oct 2019
Source: Holdings by Modular Finance AB

Insider list - Tethys Oil

Name Quantity Code Date
Petter Hjertstedt + 500 BUY 3 Mar 2020
Fredrik Robelius + 110 BUY 13 Feb 2020
Fredrik Robelius + 1 500 BUY 12 Feb 2020
William Holland + 1 514 BUY 6 Nov 2019
Magnus Nordin - 70 000 Redemp 4 Oct 2019
Magnus Nordin + 83 300 Redemp 4 Oct 2019
Fredrik Robelius - 20 000 SELL 23 Aug 2019
Fredrik Robelius - 25 000 SELL 22 Aug 2019
Magnus Nordin + 60 000 BUY 15 Aug 2019
William Holland + 50 000 BUY 15 Aug 2019

Show More