Galp Energia
Note: This is a daily stock update and the information stands true as of 10/09/24, 09:00 CEST.
Company Update:
Reuters reported that Exxon Mobil has exited the race to acquire half of Galp Energia's stake in the massive Mopane discovery offshore Namibia, though the reasons for its withdrawal remain unclear. Over 11 companies, including Shell and Petrobras, continue to engage with Galp on the sale.
According to our analyst, the withdrawal of Exxon Mobil is due to its willingness to balance its capex between traditional oil and low carbon projects while focusing on capital efficiency.
Expert Opinion:
While this isn’t good news, we believe that it absolutely doesn’t jeopardize the sale of 50% of the Mopane project. We believe the deal when completed will unlock a massive reserve of value for the company. The recent drop in share price is rather an opportunity in our opinion. Obviously, the recent drop in oil prices is weighing on the stock but in our opinion, it doesn’t really change the value they will extract from the field as these are based on long term price. We maintain our strong buy rating on Galp with the disposal of 50% of Mopane as a clear catalyst. We expect the deal to close before year end.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach our to us at sales@alphavalue.eu
Company Update:
Reuters reported that Exxon Mobil has exited the race to acquire half of Galp Energia's stake in the massive Mopane discovery offshore Namibia, though the reasons for its withdrawal remain unclear. Over 11 companies, including Shell and Petrobras, continue to engage with Galp on the sale.
According to our analyst, the withdrawal of Exxon Mobil is due to its willingness to balance its capex between traditional oil and low carbon projects while focusing on capital efficiency.
Expert Opinion:
While this isn’t good news, we believe that it absolutely doesn’t jeopardize the sale of 50% of the Mopane project. We believe the deal when completed will unlock a massive reserve of value for the company. The recent drop in share price is rather an opportunity in our opinion. Obviously, the recent drop in oil prices is weighing on the stock but in our opinion, it doesn’t really change the value they will extract from the field as these are based on long term price. We maintain our strong buy rating on Galp with the disposal of 50% of Mopane as a clear catalyst. We expect the deal to close before year end.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach our to us at sales@alphavalue.eu
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