Bonavista reported second quarter results with production and cash flow in line with consensus, although ahead of our thinking with cash flow benefiting from lower royalties and controllable cash costs. With E&D spending representing only 38% of funds flow in the period, Bonavista was able to direct ~$34 mm to debt repayment with net debt exiting the year forecasted to decrease 25% y/y. The Company has increased its 2016e E&D spending by ~12% with average annual production unchanged,
27 Jul 2016
Reports 2Q16 Results, Free Cash Flow Directed to Debt Reduction, Offers Accelerated View into 2017e
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Reports 2Q16 Results, Free Cash Flow Directed to Debt Reduction, Offers Accelerated View into 2017e
Bonavista Energy (BNP:TSE) | 0 0 (-3.6%) | Mkt Cap: 351.8m
- Published:
27 Jul 2016 -
Author:
Michael Hearn -
Pages:
7
Bonavista reported second quarter results with production and cash flow in line with consensus, although ahead of our thinking with cash flow benefiting from lower royalties and controllable cash costs. With E&D spending representing only 38% of funds flow in the period, Bonavista was able to direct ~$34 mm to debt repayment with net debt exiting the year forecasted to decrease 25% y/y. The Company has increased its 2016e E&D spending by ~12% with average annual production unchanged,