Mrkt BUZZ Zazz Energy: Delayed restart of the Amfilochia plant
30 jun 2023
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.
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