DNB upgrades Okea to 'buy' on Yme divestment boost

Okea ASA

25/09/2024 10:02

** DNB hikes Okea  OKEA.OL  to "buy" from "hold", citing the
accretive sale of its stake in the Yme field, which positions
the company for a recovery
    ** The Norwegian energy firm has divested its entire 15%
interest in the Yme field to Lime Petroleum for $15.65 million,
eliminating NOK 477 million in interest-bearing liabilities and
reducing debt by around 15%, DNB notes
    ** The broker expects a NOK 150 million to NOK 250 million
post-tax gain from the transaction, likely recognized by the end
of Q4, boosting flexibility for a potential dividend restart
    ** "We believe this transaction marks the trough, and a
likely dividend announcement in Q4 should set the stage for a
recovery and narrowed NAV discount," says DNB in a note
    ** Out of 6 analysts that cover Okea, four rate the stock
"strong buy" or "buy" and ​two rate "hold"
    ** Including today's movement, the stock has dropped by
19.55 % YTD

 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))