Q: could i have your take on latest earnings- company seems to be on the upswing - potential as a traditional +renewable ?
5i Research Answer:
KEC has done well recently, up 18% over a year and 34% year-to-date. Recent earnings did miss EPS forecasts of 85c coming in at 73c. Revenue (net of royalties) came in right around estimates at $116.7 displaying growth of 7.5% year-over-year. Production increased by 23% to 25,996 boe. The balance sheet is OK, and it is extremely cheap at 3x forward earnings. Analyst outlook is quite positive for next year. We think it looks OK, but it is not a need-to-own company.