Mrkt BUZZ Zazz Energy: Delayed restart of the Amfilochia plant

Zazz Energy announced on June 29, 2023, stating that the restart of the Amfilochia plant will be postponed until approximately August 15, 2023. The original date communicated was June 30, 2023. The reason behind this delay, as explained by the company, is that the initial schedule was too optimistic, coupled with delivery delays.

As a result of the delay, Carlsquare Equity Research has revised the motivated value per share to SEK 0.48. This represents a slight decrease from the previous motivated value of SEK 0.50 per share, which was based on the assumption that the Amfilochia plant would begin generating revenue at the start of Q3. Considering the high risk of further restart delays, we are adopting a cautious approach for our Q3 estimates. In our updated scenario, we are assuming zero revenue in Q3, compared to the previous forecast of SEK 3.7 million.

We reiterate that the risk around Zazz Energy remains high but that despite a lowered motivated value per share, there is still potential for good returns in the stock for risk-willing investors.

Disclaimer

Carlsquare AB, www.carlsquare.se, hereinafter referred to as Carlsquare, conducts business with regard to Corporate Finance and Equity Research in which areas it, among other things, publishes information about companies including analyses. The information has been compiled from sources that Carlsquare considers to be reliable. However, Carlsquare cannot guarantee the accuracy of the information. Nothing written in the analysis should be regarded as a recommendation or invitation to invest in any financial instrument, option or the like. Opinions and conclusions expressed in the analysis are intended only for the recipient.

The content may not be copied, reproduced or distributed to another person without the written approval of Carlsquare. Carlsquare shall not be held responsible for any direct or indirect damage caused by decisions made on the basis of information contained in this analysis. Investments in financial instruments provide opportunities for value increases and profits. All such investments are also subject to risks. Risks vary between different types of financial instruments and combinations of these. Historical returns should not be considered as an indication of future returns.

The analysis is not directed to U.S. persons (as defined in Regulation S of the United States Securities Act and interpreted in the United States Investment Company Act 1940) nor may it be disseminated to such persons. The analysis is also not directed to such natural and legal persons where the distribution of the analysis to such persons would result in or entail a risk of a violation of Swedish or foreign law or constitution.

The analysis is a so-called Commissioned Research Report where the analysed Company has signed an agreement with Carlsquare for analysis coverage. The analyses are published on an ongoing basis during the contract period and for a usual fixed remuneration.

Carlsquare may or may not have a financial interest in the subject of this analysis. Carlsquare values the assurance of objectivity and independence and has established procedures for managing conflicts of interest for this purpose.

The analysts Christopher Solbakke and Markus Augustsson does not own and is not allowed to own shares in the Company analysed.