Equity Research Report on Zenith Energy - Legal Setback in ICC-2, While Strong Core Business and ICSID Arbitration Carry Upside
29 augusti, 10:34
Zenith Energy (“Zenith” or “the Company”) has a long history of well-timed acquisitions at attractive valuations, demonstrated by the acquisition of oil assets in Tunisia during the COVID-19 period. The core business remains resilient through energy production in Italy, where Zenith has accelerated its acquisition strategy and recently completed its largest solar energy transaction to date, resulting in a diversified solar asset portfolio of 58.5 MWp. Italy’s favorable energy price environment, driven by high dependency on imports, provides a structural benefit to the Company. Despite the legal setback in ICC-2, the ongoing and broader claim in the ICSID arbitration remains fully intact, with Zenith pursuing USD 503m under the UK–Tunisia investment treaty. Statistical analysis of previous arbitration outcomes indicates a strong likelihood of success. With an estimated cash injection of USD 110.5 million, based on a probability-weighted approach, and core operations valued at USD 47m applying a discounted cash flow (DCF) methodology, this supports a potential present value of NOK 3.2 per share in a Base scenario.
Read the equity research report here
About Analyst Group: One of Sweden's fastest growing equity research boutiques with a focus on small and medium-sized listed companies.
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This is a press release from Analyst Group regarding the publication of an analysis on Zenith Energy. Readers may assume that Analyst Group has received compensation for making the commentary. The Company has not been given an opportunity to influence the parts where Analyst Group has had opinions about the Company, future valuation or anything else that could be considered a subjective assessment.
Equity Research Report on Zenith Energy - Legal Setback in ICC-2, While Strong Core Business and ICSID Arbitration Carry Upside
29 augusti, 10:34
Zenith Energy (“Zenith” or “the Company”) has a long history of well-timed acquisitions at attractive valuations, demonstrated by the acquisition of oil assets in Tunisia during the COVID-19 period. The core business remains resilient through energy production in Italy, where Zenith has accelerated its acquisition strategy and recently completed its largest solar energy transaction to date, resulting in a diversified solar asset portfolio of 58.5 MWp. Italy’s favorable energy price environment, driven by high dependency on imports, provides a structural benefit to the Company. Despite the legal setback in ICC-2, the ongoing and broader claim in the ICSID arbitration remains fully intact, with Zenith pursuing USD 503m under the UK–Tunisia investment treaty. Statistical analysis of previous arbitration outcomes indicates a strong likelihood of success. With an estimated cash injection of USD 110.5 million, based on a probability-weighted approach, and core operations valued at USD 47m applying a discounted cash flow (DCF) methodology, this supports a potential present value of NOK 3.2 per share in a Base scenario.
Read the equity research report here
About Analyst Group: One of Sweden's fastest growing equity research boutiques with a focus on small and medium-sized listed companies.
Read more about Analyst Group (Swedish)
This is a press release from Analyst Group regarding the publication of an analysis on Zenith Energy. Readers may assume that Analyst Group has received compensation for making the commentary. The Company has not been given an opportunity to influence the parts where Analyst Group has had opinions about the Company, future valuation or anything else that could be considered a subjective assessment.
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