March quarter production and revenue were below expectations, mainly because of a delay at Sole and also lower gas at Casino and lower oil at Cooper Basin.
The main risk, Credit Suisse assesses, is if the issue with H2S processing means Orbost struggles to reach nameplate.
While the business appears resilient to lower oil prices compared with its peers, Credit Suisse finds more compelling upside elsewhere. Neutral maintained. Target is reduced to $0.44 from $0.45.
Sector: Energy.
Target price is $0.44.Current Price is $0.41. Difference: $0.03 – (brackets indicate current price is over target). If COE meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
