Movers and SHAKERS
Indonesia Energy Corp (INDO)
2020 Results in Line, Company May Need To Access Financial Market in 2021
Indonesia Energy Corp Ltd is an oil and gas exploration and production company focused on Indonesia. It holds two oil and gas assets through its subsidiaries in Indonesia: one producing block (the Kruh Block) and one exploration block (the Citarum Block). The Kruh Block is located to the northwest of Pendopo, Pali, South Sumatra. The Citarum Block is located to the south of Jakarta.
Michael Heim, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
INDO reported 2020 financial results in line with expectations. Revenues of $2.0 million (versus $4.2 million) were in line with our $1.7 million estimate. EBITDA loss of $6.6 million was also in line. EPS was ($0.94) versus our ($0.83) estimate. Negative cash flow was expected given covid-related delays in drilling and should turn positive over the next two years if the company maintains its drilling schedule.
INDO's cash position has decreased and auditors have added "on going concern" language. INDO's cash position, which was $16 million after the company's initial IPO, has decreased to $9.3 million. With 5 wells planned in 2021 at $1.5 million each and an annual cash drain of $6 million or so to support licenses, G&A and other costs, it is possible that the company will need to seek external financing ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.