APLNG continues to increase cash distributions and the company has now guided to around $850m in FY19, ahead of UBS estimates. APLNG achieved the highest realised LNG price this quarter relative to other Australian E&P’s.
UBS believes this was largely because a higher proportion of LNG under contract was sold versus spot. The broker highlights the company’s ability to ramp up, or down, generation to maximise the value of the gas being either sold in the spot gas or electricity markets.
Buy rating and $8.75 target maintained.
Sector: Energy.
Target price is $8.75.Current Price is $7.37. Difference: $1.38 – (brackets indicate current price is over target). If ORG meets the UBS target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
