Our opinion on the current state of EFORA(EEL)Efora Energy (EEL) is an African oil and gas company incorporated in 1993 and listed on the JSE in October 1994. The company is involved in numerous projects from oil production to midstream and downstream distribution. It has operations in Egypt, Nigeria, the DRC, Zimbabwe, and South Africa. Africoil is a subsidiary that distributes 45 million liters of oil products monthly and has two depots in Boland and Beitbridge. Most of its sales are in South Africa.
In Egypt, the company owns the Mena International Petroleum Company, which is developing the Lagia oil field in the Sinai Peninsula. In the DRC, the company owns 68% of Semliki, which in turn owns 18.3% of block III in the North-East of the DRC bordering Uganda. This is in an exploratory phase. In Nigeria, the company has a 50% joint venture with Energy Equity Resources (EER) to lift and trade Nigerian oil.
In its results for the six months to 31st August 2021 (published on 27th November 2023), the company reported revenue down 95% and a headline loss of 0.32c per share compared with a loss of 25.08c in the previous period. In its results for the six months to 31st August 2022, the company reported headline earnings per share (HEPS) would be between 0.68c and 0.74c compared with a loss of 0.32c in the previous period. In a trading statement for the six months to 31st August 2023, the company estimated that it would make a headline loss per share of between 0.67c and 0.81c compared with a profit of 0.71c in the previous period.
This share has been suspended since 9th October 2020 because of delays in producing its financial statements. On 31st January, it announced that it expected to produce interim and final accounts for 2023 by 28th February 2024, but that deadline has passed without the reports being issued.
Given the significant delays in producing financial statements and the ongoing suspension of the share, Efora Energy is currently a high-risk investment. The lack of timely financial reporting and the resulting suspension from trading make it impractical for most investors. Potential investors should wait for the company to resolve its reporting issues and for the share to resume trading before considering any investment.
EEL trade ideas
Our opinion on the current state of EFORA(EEL)Efora Energy (EEL), established in 1993 and listed on the JSE in October 1994, is an African oil and gas company engaged in a range of projects spanning oil production, and midstream to downstream distribution. The company's operations extend across Egypt, Nigeria, the DRC, Zimbabwe, and South Africa. Its subsidiary, Africoil, distributes 45 million liters of oil products monthly and operates two depots in Boland and Beitbridge, with the majority of its sales occurring in South Africa.
In Egypt, Efora owns the Mena International Petroleum Company, which is currently developing the Lagia oil field in the Sinai Peninsula. In the DRC, Efora holds a 68% stake in Semliki, which in turn owns 18.3% of Block III, located in the northeastern part of the country bordering Uganda. This project is still in the exploratory phase. In Nigeria, the company maintains a 50% joint venture with Energy Equity Resources (EER) for lifting and trading Nigerian oil.
For the six months ending on 31st August 2021, as reported on 27th November 2023, Efora experienced a significant downturn with revenue decreasing by 95%, and a headline loss of 0.32 cents per share, improving slightly from a previous loss of 25.08 cents. For the subsequent six months ending on 31st August 2022, the company anticipated an improvement in headline earnings per share, projecting a range between 0.68 cents and 0.74 cents, up from a loss of 0.32 cents in the earlier period.
However, Efora has faced operational challenges, evidenced by the suspension of its shares since 9th October 2020 due to delays in producing financial statements. Despite announcements made on 31st January that interim and final accounts for 2023 were expected by 28th February 2024, these documents have not been forthcoming, casting further uncertainty on the company’s financial health and operational stability.
Our opinion on the current state of EFORA(EEL)Efora Energy (EEL) is an African oil and gas company that has been a part of the industry landscape since its incorporation in 1993. The company was listed on the Johannesburg Stock Exchange (JSE) in October 1994 and has engaged in various sectors of the oil and gas industry, ranging from production to distribution across several African countries.
Efora operates in key regions including Egypt, Nigeria, the Democratic Republic of Congo (DRC), Zimbabwe, and its home base, South Africa. In Egypt, Efora owns the Mena International Petroleum Company, which is focused on developing the Lagia oil field in the Sinai Peninsula. In the DRC, the company holds a significant stake in Semliki, which in turn owns a portion of block III in the northeastern part of the country near the Ugandan border, currently in the exploratory phase. In Nigeria, Efora has a joint venture with Energy Equity Resources (EER) that is centered on lifting and trading Nigerian oil.
Africoil, a subsidiary of Efora, plays a critical role in its operations by distributing approximately 45 million liters of oil products monthly through its two depots in Boland and Beitbridge, with the majority of its sales occurring in South Africa.
However, Efora has faced significant challenges. The company’s financial performance has shown dramatic fluctuations, as evidenced in the results for the six months ending on 31st August 2021, which were reported on 27th November 2023. These results highlighted a staggering 95% drop in revenue and a headline loss of 0.32 cents per share, an improvement, however, from a loss of 25.08 cents in the previous period. The trading update for the six months to 31st August 2022 projected an earnings turnaround with HEPS expected to be between 0.68 cents and 0.74 cents, contrasting with the loss in the prior period.
Despite these efforts at recovery, the company’s shares have been suspended since 9th October 2020 due to delays in publishing its financial statements, reflecting ongoing issues with governance and financial management. On 31st January, Efora announced its intention to produce both interim and final accounts for 2023 by 28th February 2024, signaling potential moves towards resolving its compliance issues.
Investing in Efora Energy carries significant risk, largely due to its volatile financial performance, operational challenges, and the overarching regulatory issues demonstrated by the suspension of its shares. Potential investors should exercise caution, keeping an eye on the company’s ability to meet its financial reporting obligations and on any developments that might affect its operational stability and market standing.
Our opinion on the current state of EELEfora Energy (EEL) is an African oil and gas company with a rich history, having been incorporated in 1993 and subsequently listed on the JSE in October 1994. The company operates across a wide spectrum of projects within the oil and gas industry, encompassing activities ranging from oil production to midstream and downstream distribution. Efora Energy conducts its operations in several African countries, including Egypt, Nigeria, the Democratic Republic of Congo (DRC), Zimbabwe, and South Africa.
One of its notable subsidiaries is Africoil, which is engaged in the distribution of approximately 45 million liters of oil products each month. Africoil operates two depots, one located in Boland and the other in Beitbridge, primarily serving customers in South Africa.
In Egypt, Efora Energy owns Mena International Petroleum Company, which is actively involved in the development of the Lagia oil field situated in the Sinai Peninsula. In the DRC, the company holds a 68% stake in Semliki, which, in turn, possesses an 18.3% interest in block III in the North-East region of the DRC, adjacent to Uganda. This particular venture is currently in the exploratory phase.
In Nigeria, Efora Energy has established a 50% joint venture partnership with Energy Equity Resources (EER). This joint venture is engaged in the lifting and trading of Nigerian oil.
However, it's worth noting that the company has faced challenges with its financial reporting. In its results for the six months ending on August 31, 2021 (published on November 27, 2023), Efora Energy reported a significant decline in revenue, down by 95%. The company also reported a headline loss of 0.32c per share, which represents an improvement compared to the previous period's loss of 25.08c per share.
Efora Energy's share trading has been suspended since October 9, 2020, primarily due to delays in producing its financial statements. The company announced on January 31 that it anticipated delivering interim and final accounts for the year 2023 by February 28, 2024.
Our opinion on the current state of EELEfora Energy (EEL) is an African oil and gas company incorporated in 1993 and listed on the JSE in October 1994. The company is involved in numerous projects from oil production to midstream and downstream distribution. It has operations in Egypt, Nigeria, the DRC, Zimbabwe and South Africa. Africoil is a subsidiary which distributes 45m litres of oil products monthly. It has two depots in Boland and Beitbridge. Most of its sales are in South Africa. In Egypt, the company owns the Mena International Petroleum Company which is developing the Lagia oil field in the Sinai Peninsula. In the DRC, the company owns 68% of Semliki which in turn owns 18,3% of block III in the North-East of the DRC bordering on Uganda. This is in an exploratory phase. In Nigeria, the company has a 50% joint venture with Energy Equity Resources (EER) to lift and trade Nigerian oil. In its results for the six months to 31st August 2021 (published on 27th November 2023) the company reported revenue down 95% and a headline loss of 0,32c per share compared with a loss of 25,08c in the previous period. This share has been suspended since 9th October 2020 because of delays in producing its financial statements.
Our opinion on the current state of EELEfora Energy (EEL) is an African oil and gas company incorporated in 1993 and listed on the JSE in October 1994. The company is involved in numerous projects from oil production to midstream and downstream distribution. It has operations in Egypt, Nigeria, the DRC, Zimbabwe and South Africa. Africoil is a subsidiary which distributes 45m litres of oil products monthly. It has two depots in Boland and Beitbridge. Most of its sales are in South Africa. In Egypt, the company owns the Mena International Petroleum Company which is developing the Lagia oil field in the Sinai Peninsula. In the DRC, the company owns 68% of Semliki which in turn owns 18,3% of block III in the North-East of the DRC bordering on Uganda. This is in an exploratory phase. In Nigeria, the company has a 50% joint venture with Energy Equity Resources (EER) to lift and trade Nigerian oil. In its results for the year to 28th February 2021 the company reported revenue down 40% and a loss of 46,52c per share compared with a loss of 1,86c in the previous period. In a trading statement for the six months to the 31st of August 2021 the company estimated that it would make between a headline loss of 2,8c and a profit of 2,2c. This share has been suspended since 9th October 2020 because it has still not produced its financial statements for the year ended 28th February 2021.