SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

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Equity Bottom-Up

Rex International Holding / Equity Bottom-Up

<ul><li>Please note that this Market Update is only available in Chinese. 本地投资者也可以关注新加坡市场上的油气投资标的，近期它们的表现相当不俗，比如https://investors.sgx.com/securities/stocks?security=T13、https://investors.sgx.com/securities/stocks?security=5WH以及https://investors.sgx.com/securities/adrs?security=TPED等。 同时，在新加坡上市的https://investors.sgx.com/securities/adrs?security=TPED 的趋势和动能也在图表上表现出相当的强劲。.</li></ul>

Please note that this Market Update is only available in Chinese. 本地投资者也可以关注新加坡市场上的油气投资标的，近期它们的表现相当不俗，比如https://investors.sgx.com/securities/stocks?security=T13、https://investors.sgx.com/securities/stocks?security=5WH以及https://investors.sgx.com/securities/adrs?security=TPED等。 同时，在新加坡上市的https://investors.sgx.com/securities/adrs?security=TPED 的趋势和动能也在图表上表现出相当的强劲。.

What's Trending: Oil & Gas Stocks in Focus

External broker reports(aggregated public sources), UOB Kay Hian

UOB Kay Hian

External broker reports(aggregated public sources)

Backed by the UOB Group, UOB Kay Hian is one of Asia’s largest brokerage firms. Headquartered in Singapore, we are supported by more than 80 branches worldwide including a growing network of offices across Southeast Asia, Greater China, the United Kingdom and North America. Our global footprint and strong international presence have enabled us to feel the pulse of key financial markets and deliver incisive intelligence across industry sectors and asset classes. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>12 months after new oil production facilities were installed at the Yumna oil field offshore Oman (which is Rex International’s major cash cow), production has yet to regain the highs seen in 2021.</li><li>Instead, production remains stubbornly at 50% below change-out of the new facilities.</li><li>One year after the successful hook-up and commissioning of the new floating storage tanker and mobile offshore production unit (MOPU) at its key Yumna asset offshore Oman, production has continued to disappoint.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

12 months after new oil production facilities were installed at the Yumna oil field offshore Oman (which is Rex International’s major cash cow), production has yet to regain the highs seen in 2021.Instead, production remains stubbornly at 50% below change-out of the new facilities.One year after the successful hook-up and commissioning of the new floating storage tanker and mobile offshore production unit (MOPU) at its key Yumna asset offshore Oman, production has continued to disappoint.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Rex International - Yumna Oil Field Remains Problematic

Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>
<a href="https://www.smartkarma.com/entities/rex-international-holding" target="_blank" data-smartkarma-citation="entities:17074:1" rel="noopener">Rex International Holding (REXI SP)</a> has announced further investments outside of its core oil&amp;gas portfolio both related to its major shareholder. A major red flag.</li>
<li>It is unclear whether these investments will bring real value to Rex as minority investors generally hate related party transactions without clear justification.</li>
<li>The latest drilling campaign in Oman again encountered operational issues giving fuel to the bears that Rex is not capable of successfully operating its own fields.</li>
</ul>



Rex International Holding (REXI SP) has announced further investments outside of its core oil&amp;gas portfolio both related to its major shareholder. A major red flag.
It is unclear whether these investments will bring real value to Rex as minority investors generally hate related party transactions without clear justification.
The latest drilling campaign in Oman again encountered operational issues giving fuel to the bears that Rex is not capable of successfully operating its own fields.


<ul>
<li>Rex reported a disappointing set of results mainly due to continued struggles in Oman. While Oman production was well over 10K bpd in 1H21 it deteriorated every month in 1H22.</li>
<li>Revenue was 99.45M USD (+31%) but we estimate it would have been closer to 149M USD if the Yumna field wouldn't have stopped producing for almost 70 days in 1H22.</li>
<li>YTD stock is -23% and can only reverse if management proves Oman is ready to rebound. Dividend payments will start on a quarterly basis as of October 2022.</li>
</ul>


Rex reported a disappointing set of results mainly due to continued struggles in Oman. While Oman production was well over 10K bpd in 1H21 it deteriorated every month in 1H22.
Revenue was 99.45M USD (+31%) but we estimate it would have been closer to 149M USD if the Yumna field wouldn't have stopped producing for almost 70 days in 1H22.
YTD stock is -23% and can only reverse if management proves Oman is ready to rebound. Dividend payments will start on a quarterly basis as of October 2022.


Rex 1H22 Results: All Eyes on Recovery in Oman; Trading on 8.3% Dividend Yield

<ul>
<li>Rex will soon close a disappointing 1H22 as equipment upgrades and maintenance hamper production in Oman. Recently production was halted again due to a small oil leak in its flowline.</li>
<li>Norway's production has been declining in 1H. Rebound hopefully in 2H. New bond financing was announced for more Norwegian M&amp;A. Malaysian assets to get the green light in 2H22.</li>
<li>Rex remains very cheap but needs to deliver on operational milestones to unlock value. YTD share price performance has lagged sector peers substantially.</li>
</ul>


Rex will soon close a disappointing 1H22 as equipment upgrades and maintenance hamper production in Oman. Recently production was halted again due to a small oil leak in its flowline.
Norway's production has been declining in 1H. Rebound hopefully in 2H. New bond financing was announced for more Norwegian M&amp;A. Malaysian assets to get the green light in 2H22.
Rex remains very cheap but needs to deliver on operational milestones to unlock value. YTD share price performance has lagged sector peers substantially.


Singapore

Rex International Holding Limited is a production and exploration oil company with concessions in Norway, UAE, Oman, and the US.

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Rex International Holding (REXI SP)

Rex International - Yumna Oil Field Remains Problematic

Over the past two years, Yumna’s production has declined by >60%, with the latest May 23 data showing a 10% m-o-m decline.

UOB Kay Hian

Rex: Diversification or Deworsification?

Rex has morphed into a Lidgren family holding where it is unclear what minority investors are buying into. The risk of more inter-related party...

Nicolas Van Broekhoven

Rex 1H22 Results: All Eyes on Recovery in Oman; Trading on 8.3% Dividend Yield

Rex had a challenging 1H22 as production in Oman ground to a halt for almost 70 days. Rex will now have to prove to investors it can recover and...

Nicolas Van Broekhoven

Preview Rex International: 1H22 Results

Rex had a poor 1H22 and is hoping to catch up lost performance in 2H22. More M&A in Norway should help lift its production profile. Malaysian entry...

Nicolas Van Broekhoven

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Market Cap (USDm)

P/E

Dividend (Yield)

What's Trending: Oil & Gas Stocks in Focus

Please note that this Market Update is only available in Chinese....

Singapore Exchange Ltd (SGX)

Rex International - Yumna Oil Field Remains Problematic

Over the past two years, Yumna’s production has declined by >60%, with the latest May 23 data showing a 10% m-o-m decline.

UOB Kay Hian

Rex: Diversification or Deworsification?

Rex has morphed into a Lidgren family holding where it is unclear what minority investors are buying into. The risk of more inter-related party...

Nicolas Van Broekhoven

Rex 1H22 Results: All Eyes on Recovery in Oman; Trading on 8.3% Dividend Yield

Rex had a challenging 1H22 as production in Oman ground to a halt for almost 70 days. Rex will now have to prove to investors it can recover and...

Nicolas Van Broekhoven

Preview Rex International: 1H22 Results

Rex had a poor 1H22 and is hoping to catch up lost performance in 2H22. More M&A in Norway should help lift its production profile. Malaysian entry...

Nicolas Van Broekhoven