FY20 earnings were at the top of guidance although interest expenses were higher than Credit Suisse estimated because of the lease accounting.
The company has indicated expenditure efficiency improvements from FY22, which leaves FY22 guidance for EBITDA at $100-110m. Credit Suisse also suspects the expansion at Roma North could add another 6c per share by FY22.
Further guidance will be forthcoming on growth/capital management over the next six months. Outperform retained. Target rises to $0.39 from $0.36.
Sector: Energy.
Target price is $0.39.Current Price is $0.29. Difference: $0.10 – (brackets indicate current price is over target). If SXY meets the Credit Suisse target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).
