Exmar – Update Q3 numbers: “Thank you for the Tango” & SELL
Exmar was a special situation that I entered in August, following a surprising significant asset sale (a LNG liquification platform called “Tango”)
Yesterday evening, Exmar reported Q3 numbers including the final numbers on the ENI transaction. A few points that I found important:
- Cash proceeds for the ENI transaction were slightly higher (+13 mn) compared to my base case
- Net cash at company level however was -23 mn lower than I had calculated
- Interestingly, Exmar only reported net cash at Group level, not gross cash at Holding level
- The remaining core LPG business seems to do quite well, with sales up ~6% and EBIT up ~50%
- They didn’t provide explicit number on how much they earn with the remaining regasification unit that is operating since August. The earnings of the “infrastructure” segment are really hard to read
- Next week, there will be an extraordinary shareholder meeting declaring a 0,95 EUR dividend per share
The share price has done quite well. At the time of writing, Exmar traded at 10,20 EUR per share, an increase of almost exactly 1/3 vs. when I entered the position and even better in relative terms:
value and opportunity 