Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

Credit

Medco Energi’s 9M/19 earnings were slightly weaker than expected, as the gross margin fell amid higher cash costs and lower realised oil prices. Leverage was in line with expectations, thanks to a slight q-o-q improvement in Debt/EBITDA. We project that full-year Debt/EBITDA will strengthen slightly to c. 5x (LTM 9M/19: 5.4x), albeit remaining weaker than at FYE 2018 (4.8x). We further expect Medco’s FCF to remain negative over the near term, on account of the high capex. That said, cash flow could be supplemented by the company’s non-core asset disposals. Medco may also embark on further acquisitions, considering its relatively short 2P reserve life of nine years. Although the company has ample 2C reserves, these are unproven and will require exploration capex.

  Medco Energi’s 9M/19 earnings were slightly weaker than expected, as the gross margin fell amid higher cash costs and lower realised oil prices. Leverage was in line with expectations, thanks to a slight q-o-q improvement in Debt/EBITDA. We project that full-year Debt/EBITDA will strengthen slightly to c. 5x (LTM 9M/19: 5.4x), albeit remaining weaker than at FYE 2018 (4.8x).   We further expect Medco’s FCF to remain negative over the near term, on account of the high capex. That said, cash flow could be supplemented by the company’s non-core asset disposals. Medco may also embark on further acquisitions, considering its relatively short 2P reserve life of nine years. Although the company has ample 2C reserves, these are unproven and will require exploration capex. 

Medco Energi - Earnings Flash - 9M FY 2019 Results - Lucror Analytics