FY20 earnings guidance has been upgraded by around 10% to $45-55m because of the narrowing of production guidance.
GLNG has requested the company divert 1PJ of gas through June-August to the domestic market, which will result in lower prices for the company.
Senex Energy remains one of Macquarie’s preferred small energy stocks, given the strong gas growth profile in the Surat Basin.
While there is pressure on global LNG markets and east coast gas prices, the broker believes this is more the reflected in the share price.
Outperform rating maintained. Target is $0.29.
Sector: Energy.
Target price is $0.29.Current Price is $0.23. Difference: $0.06 – (brackets indicate current price is over target). If SXY meets the Macquarie target it will return approximately 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).
