Quick & Dirty AnalysisWDecent results, but camouflaged by not taking asset impairment charges. The Nigerian assets have no doubt been devalued due to the drop in production and oil price. The auditors would have demanded that they be taken under IFRS, but for the fact that the financials were prepared by mgmt. on interim basis.
For Q2, actual oil production dropped from entitlement of 36 thousand boepd to 28 thousand. Also, going forward, AOI had projected nearly $80 Brent for 2021 cash flow. Unless crude goes back up from $42 here, it is not achievable.
The Co still owes USD$1 billion in total loans. Investing in AOI is like buying an over-leveraged debt instrument. Just look at Lundin's ShaMaran (SNM) Petroleum owing USD$200 million & nearly went bankrupt a month ago. The stock Is trading at misery 3 pennies, saved by the bell with Lundin providing last-minute emergency funding.