Ann: Project Haber to become green hydrogen and carbon sink, page-41

I just got this...

Thursday, 16 September 2021

STX - STRIKE ENERGY LIMITED

Macquarie rates STX as Outperform (1) - Strike Energy has signed an MOU with Infinite Blue and ATCO to secure additional hydrogen for Project Haber urea. Macquarie observes the company is pursuing a net zero plan that will enhance its ESG profile and reduce dependence on imported urea.

Strike Energy requires 141,000tpa of hydrogen to run its urea plant in the Perth Basin and initially this will largely be sourced from Greater Erregulla natural gas feedstock.

Over time, as green hydrogen becomes available at lower prices from operators nearby, the company should be able to increase its green hydrogen ratio to 70% and Project Haber would become one of the largest industrial consumers of green hydrogen in Australia.

Macquarie retains an Outperform rating and $0.60 target.

Target price is $0.60 Current Price is $0.30 Difference: $0.3 If STX meets the Macquarie target it will return approximately 100% (excluding dividends, fees and charges). The company's fiscal year ends in June.

Forecast for FY21:

Macquarie forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.00 cents .

Forecast for FY22:

Macquarie forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.80 cents . At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.50.

Market Sentiment: 1.0All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources