Post on 06-Jul-2018
8/17/2019 CardinalStone Research - Forte Oil Plc_Higher Fuel Margins, Geregu Upgrade, A Plus for 2016 Earnings
1/10
Page | 1
Company Update
Forte Oil PlcEquity Resea
On Wednesday, 24th
February, 2016, we visited Forte Oil’s Geregu Power Plant in Ajaokuta,
Kogi State. Based on feedback from the visit and the release of the company’s trading and
operational update for the year ended 31st
December, 2015, we raise TP to N297.69
(Previous: N183.61) and upgrade the counter to a HOLD. Kindly see our update on the
company below;
We expect earnings to improve in FY16E … A combination of factors
should help improve the company’s bottomline in FY’16E. First, we highlight the
petroleum motor spirit (PMS) margin increase for retailers from N4.60 per litre to
N5.00 per litre and the rise in the retail price for kerosene from N50.00 per litre to
N83.00 per litre. Secondly, the fall in crude oil prices has led to a corresponding fall
in base oil prices which should be supportive of revenue from lubricants. Also, we
think an improvement in the subsidy management scheme which saw zero subsidy
paid in January should help working capital management. According to the Minister
of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, the novel pricemodulation mechanism currently in place will ensure that the Federal Government
records zero expenses on fuel subsidy in 2016.
Following from a tough 2015 as supply disruptions dampened
sales: 2015 was a markedly tough environment for downstream operators who
battled with FX challenges and delayed subsidy payments by the government. FO
reported a 27% YoY revenue decline in FY’15 as PMS supply disruption weighed on
sales. With lower PMS volume coming into the revenue mix, FO’s margins were
boosted significantly by contribution of the higher margin lubricants and power
segments. FY’15 gross margin came in at a historic high of 14.7% (FY’14: 10.9%).
Despite the reduction in sales throughput, OPEX continues to rise – up by 17% YoY.
PAT was up by 30% YoY to N5.7 billion as the benefit from a 189% YoY rise in
exceptional income fed through.
We revise our recommendation to a HOLD: We have raised our target
price (TP) on Forte Oil Plc (FO) to N297.69 (from N183.61) after adjusting for
expected higher earnings from Geregu and improved operating environment in the
downstream sector, and therefore place an HOLD recommendation on the counter.
The stock is trading at 63x earnings compared to comparables (TOTAL and MOBIL)
average P/E of 14x. Our target price implies a 2% upside from current price.
Catalyst and Risks: The deregulation of the downstream sector in 2016 would
have a material impact on the company’s earnings. A major risk to FO is the
devaluation of the Naira as gas prices are quoted in dollars whilst the company
receives payments for generated electricity in naira.. Naira devaluation will see
operating expenses rise for the power business.
Ana
Damilola La
Damilola.Lawal@cardinalstone
04 March 2016
HOLD TP: N29
Stock Data
Bloomberg Ticker:
Market Price (N)
Shares Outs (Mn)
Market cap (N’Bn)
Price
Performance FO
12-month (%) 32.4
3-month (%) 17.9
YTD (%) -11.1
Valuation 2015A 2016E
P/E (x) 63.8 39.1
P/BV (x) 8.0 7.1
Div. Yield (%) 1.0% 1.2%
0
0.5
1
1.5
2
- - -
J l - - -
ASI FO
YTD Price Performance (rebased)
Contact Information
research@cardinalston
+234 809 04
sales@cardinalston
+234 809 94
8/17/2019 CardinalStone Research - Forte Oil Plc_Higher Fuel Margins, Geregu Upgrade, A Plus for 2016 Earnings
2/10
Page | 2
Company Update
Forte Oil PlcEquity Resea
FY’15 Review – Tough operating environment deals blow to
revenue, but earnings delight
FO reported a 27% YoY revenue decline to N124.6 billion in FY’15. The decrease in
revenue reflects lower revenue from the company’s fuel and lubricants business
(down by 32% YoY) due to product distribution challenges which affected volumes
and a N10 price cut in the retail price of PMS. The other divisions, the productionchemicals, lubricants and power generation segments reported strong growth
numbers – up by 44% YoY, 9% YoY and 13% YoY to N3.9 billion, N6.2 billion and
N10.3 billion respectively. We saw considerable shift in focus towards the
production chemicals and lubricants segments given that they are margin accretive.
The uptick in the power generation segment was due to an increase in capacity
utilization to 33% from 30%.
Table 1: FY’15 Segment Breakdown (N’billion)
FY’15 FY’14 % Growth
Power 10.3 9.1 13.3%
Fuels 104.3 152.7 -31.7%
Production Chemicals 3.9 2.7 44.2%
Lubricants 6.2 5.7 9.1%
Source: CardinalStone Research, Company Financials
FO reported FY’15 EPS growth of 87% to N4.11, boosted by an exceptional rise in
other income – up by 190% to N4.1 billion. Other income increased by 190% due toincome from investment in securities held to maturity, freight income from the 100
trucks acquired the previous financial year and sale of investment property. FO’s
Board of Directors proposed a DPS of N3.45 (FY’14: N2.50), representing a payout
ratio of 84%.
Price performance: Is there any gas left?
Relative to the All Share Index (-14.01%), and Nigeria’s Oil & Gas index (-6.81%), FO
(+32.41%) has outperformed over the last 12 months. The market has reacted
positively to news about FO; - 1) the award of a crude oil lifting contract by the
NNPC; 2) planned upgrade to the installed capacity of the Geregu Power Plant; and
3) release of FY’15 results. Other news such as the increase in downstream
marketer’s margin to N5.00 per litre and the introduction of price modulation
template was justifiably acknowledged by the market. We believe FO’s market
valuation is stretched at current level. However, illiquidity and trading sentiments
may continue to support FO’s share price.
8/17/2019 CardinalStone Research - Forte Oil Plc_Higher Fuel Margins, Geregu Upgrade, A Plus for 2016 Earnings
3/10
Page | 3
Company Update
Forte Oil PlcEquity Resea
2016 themes - Higher fuel margins, increase in Geregu’s
installed capacity, oil l ifting contracts, a plus for 2016 earnings
Along with the review of the PMS pricing template, the margin for retailers has been
increased from N4.60 per litre to N5.00 per litre after a long period of fixed margins
– technically an 8.7% increase in margin per litre. We also expect that supply
disruptions that plagued much of last year will ease as the de-risking of the “subsidy
burden” should help improve volumes. Secondly, the fall in crude oil prices has ledto a corresponding fall in base oil prices which should be supportive of lubricants
segment margin; we recall that this category accounted for 5% of sales last year. We
see contribution from that business segment rising to 6% in 2016. Other areas that
could help improve FO’s earnings is the ongoing upgrade to the Geregu Power Plant
which will lift installed capacity to 435 megawatts and the award of the crude oil
lifting contract. At 55% capacity utilisation (CSP’s 2016 estimate), that business
segment will account for 11% of revenues. This could rise much further if capacity
utilisation reaches management’s target of between 70 - 85%. FO was awarded a
one-year contract by the NNPC to lift crude oil (c.45,000 barrels per day) from the
various crude and condensate production arrangements. In our view, its partnershipwith Mercuria helped the company qualify for the contract which brings in higher
margins than petroleum marketing. Details are sketchy as the contract is yet to
commence but we are optimistic that this will boost revenues and earnings further
as crude oil trading brings in higher margins than petroleum marketing. This entails
the swapping of crude oil in the international market for refined petrol, which is
then imported into the country. This could also help reduce the strain of sourcing FX
to import refined fuel.
100
150
200
250
300
350
400
Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-
FO
Source: CardinalStone Research, Bloomb
Figure 1: Event Tracker
1. FO announces FY’14 dividend of N2.50 (February 03)
2. FO signs $83 million contract with Siemens (June 30)
3. FO sells 17% stake to Mercuria (September 27)
4. FO wins NNPC lifting contract (December 18)
5.
FY’15 earnings release accompanied by DPS of N3.45 (Jan 29)
8/17/2019 CardinalStone Research - Forte Oil Plc_Higher Fuel Margins, Geregu Upgrade, A Plus for 2016 Earnings
4/10
Page | 4
Company Update
Forte Oil PlcEquity Resea
Nonetheless, devaluation concerns rise to the fore
In our view, FX volatility provides the biggest challenge to operations this year and
could likely offset or limit most of the positives highlighted earlier. Devaluation
would prove to be a “double whammy” on the company’s operation. Firstly,
devaluation of the naira will increase the landing cost of petroleum products.
Accordingly, this will increase the subsidy the government will have to pay on
regulated products such as petrol – if subsidies are retained. For these products,
devaluation will have no impact on the marketers as the government bears the
exchange rate risk. However, for bills of laden executed before the devaluation, the
subsidy repayment will be based on the pre-devaluation exchange rate and only bills
executed after the devaluation will be refunded using the devalued exchange rate.
As such, the company will be forced to bear the loss of devaluation. Asides that, for
non-regulated products such as diesel and kerosene, the company may have to bear
or transfer the total cost implication to the consumers or split the cost between
themselves and consumers. Either of these alternatives would pull margin
downwards. Secondly, the company pays for gas priced in dollars and receives
payments for generated electricity in naira. Hence, cost of sales will rise if
devaluation occurs. A devaluation would increase Forte’s operating expenses in the
power segment. Though, MYTO allows for an upward adjustment in electricity tariffs
in the event of devaluation, the difficulty in implementing tariff increases lately will
be a hindrance.
Valuation
We value FO using a five-year discounted cashflow model. We increase our TP for
FO to N297.69 (Previous: N183.61) after adjusting for higher margins in the
downstream sector and improved outlook for earnings from the power division.
This implies a 2% upside potential from current share price levels and therefore
revise our recommendation to a HOLD. However, given the sketchy details around
the crude oil lifting contract, we have excluded its impact from our valuation.
8/17/2019 CardinalStone Research - Forte Oil Plc_Higher Fuel Margins, Geregu Upgrade, A Plus for 2016 Earnings
5/10
Page | 5
Company Update
Forte Oil PlcEquity Resea
Operational report of Geregu’s plant visit
A Brief History
Amperion Power Distribution Co Ltd, a power generation company and a subsidiary
of Forte Oil Plc, acquired the Geregu Power Plant located in Ajaokuta, Kogi State,
under the government-led privatization program in the power sector, for a purchase
consideration of $132 million in 2013. The total installed capacity of the gas-fired
power plant is 414 MW. The transaction implies a deal value of $0.32 million per
MW. While it may seem expensive relative to other acquisitions in the sector
(average of $0.25 million per megawatt), we highlight the fact that the Geregu
Power Station is the newest of the power stations that were either sold or
concessioned. The gas-fired power plant was commissioned in 2007 with three
Siemens V94.2 open cycle gas turbine power generation units totaling 414MW of
installed capacity. The three operational units namely GT11, GT12, and GT13 have
an installed capacity of 138 MW each.
Good ramp up expected
Forte Oil signed an $83 million contract with Siemens AG to upgrade the capacity of
the power plant to 435 MW. The company has made a down payment of $62.25
million for the work and construction work should be completed by H1’16.
According to the Siemens representatives, repair and replacement works have
commenced and work is progressing according to schedule. GT11 and GT12 have
been shut-down for the necessary repairs whilst work will commence on GT13 when
repairs have been completed on GT11 and GT12. Following the completion of repair
works, the plant should be able to function at close to c.100% capacity but due totransmission losses, management expects capacity utilisation to vary between 70% -
85% but still well above the 33% capacity utilisation recorded in 2015.
The energy risk is contained
The Geregu Plant is gas-fired with feedstock currently supplied by Seplat Petroleum
Development Corporation through a 24-inch natural gas pipeline which feeds from
Seplat Oben gas processing plant in Edo State. Seplat currently supplies about
80mmscf/d though negotiations are ongoing to increase supply by an additional
10mmscf/d. We understand that gas supply is relatively stable except when there
are incidences of pipeline vandalisation which then reduces gas pressure. Efforts areunderway to mitigate this as discussions are ongoing with the Nigerian Gas
Company to supply additional gas as back-up. Power has a considerable impact on
the company’s valuation contributing 40% to EBITDA in 2015; however margins
could come under pressure in the event of devaluation of the Naira. The company
pays for gas in dollars at the interbank rate and from our analysis, a 50% devaluation
of the official rate could see gross margins for the power division drop by 25%.
8/17/2019 CardinalStone Research - Forte Oil Plc_Higher Fuel Margins, Geregu Upgrade, A Plus for 2016 Earnings
6/10
Page | 6
Company Update
Forte Oil PlcEquity Resea
Photo Gallery of Geregu Power Plant, Ajaokuta, Kogi State
Pi e-link from Oben Gas Plant Ste -U Transformer
Welcome to Gere u GT11 GT12 and GT13
Generators Stri ed-Out Gas Turbine
8/17/2019 CardinalStone Research - Forte Oil Plc_Higher Fuel Margins, Geregu Upgrade, A Plus for 2016 Earnings
7/10
Page | 7
Company Update
Forte Oil PlcEquity Resea
Sector Analysis in 2016
Overall, we expect a much smoother operating environment in
the downstream sector
The downstream sector was fraught with negative events last year. For lengthyperiods of time, persistent queues rocked fuel stations across Nigeria. A
combination of factors precipitated this event. 1) There were continued delays in
the reimbursement of oil subsidies by the federal government; 2) poor product
evacuation infrastructure at the Apapa Ports, including road networks; and 3) higher
risk aversion by banks to the sector which limited credit to petroleum marketers. In
addition to these, FX volatility was not supportive. In 2016, we expect smoother
operations given that delays in subsidy reimbursements are likely to be less of an
issue. Crude oil price outlook remains bearish and as such, the expected market
price for premium motor spirit (PMS) is set to hover around the FG’s set N87.00 per
litre pump price, possibly below, for an extended length of time. Secondly, the roadnetwork in Apapa is expected to improve given concerted efforts by the Federal and
State Government to ease bottlenecks. Recently, Dangote Construction Limited
announced plans to reconstruct the Apapa Road as part of its corporate social
responsibility. With the de-risking of the subsidy burden, we think that lenders will
be more comfortable lending to petroleum marketers.
Power - Can gas supply catch up with estimated electricity
demand?
NERC’s electricity generation projections for 2015-2024 under the Multi Year Tariff
Order (MYTO 2) estimates a 15% Compounded Annual Growth Rate (CAGR) in load
projection with gas-fired (thermal) power plants generating an average 88% over
the period. Thermal power generation is expected to rise from 4,853 MW in 2016 to
13,170 MW by 2024. From our calculations, the industry would require a significant
boost in gas supply to achieve this feat. We calculate that a doubling of gas-to-
power supply from the 722.0 mmscf/d recorded in December 2015 to 1,444
mmscf/d is required in order to meet 2016 load projection of 4,853 MW. By 2024,
4,181 mmscf/d of gas will be required to meet load projection of 13,170 MW. Whilst
current and forecast gas production can bridge this gap, gas producers will need to
significantly reduce gas flaring which at an average 743 mmscf/d is higher than the
average supply of 696.7 mmscf/d supplied to the power industry in the whole of
2015. Commercializing flared gas would require huge investments which gas
producers are cautious of making in view of huge debts owed by the power industry.
8/17/2019 CardinalStone Research - Forte Oil Plc_Higher Fuel Margins, Geregu Upgrade, A Plus for 2016 Earnings
8/10
Page | 8
Company Update
Forte Oil PlcEquity Resea
Financial Statements and Key Ratios – Forte Oil Plc
Income Statement 2014A 2015A 2016E 2017F 2014A 2015A 2016E 2017F(N'Mn) (US$'Mn)
Revenue 170,128 124,617 181,946 197,405 1,030 626 910 940
Cost of Sales (151,663) (106,256) (147,163) (156,825) (918) (533) (736) (747)
Gross Profit 18,465 18,361 34,783 40,579 112 92 174 193
Distri. And Admin Expenses (11,726) (13,724) (21,834) (23,689) (71) (69) (109) (113)EBITDA 6,739 4,637 12,950 16,891 41 23 65 80
Other Income 1,398 4,051 1,398 1,426 8 20 7 7
EBIT/Operating profit 8,137 8,688 14,348 18,317 49 44 72 87
Interest Expense/Income (2,130) (1,676) (2,898) (1,201) (13) (8) (14) (6)
Pre-tax earnings 6,006 7,012 11,449 17,116 36 35 57 82
Taxation (1,550) (1,218) (1,989) (3,081) (9) (6) (10) (15)
Profit after tax 4,457 5,794 9,460 14,035 27 29 47 67
Statement of Financial Position 2014A 2015A 2016E 2017F 2014A 2015A 2016E 2017FAssets
Property, Plant and Equipment 54,253 62,420 66,370 68,722 329 315 332 327
Investment Property 1,935 1,832 1,832 1,832 12 9 9 9
Intangible Assets 476 286 286 286 3 1 1 1
Deferred Tax Assets 121 131 131 131 1 1 1 1
Long-Term Employee Benefits 16 42 42 42 0 0 0 0Inventories 12,202 10,060 13,933 14,848 74 51 70 71
Other Assets 573 390 540 575 3 2 3 3
Trade and Other Receivables 53,600 34,897 24,924 27,042 325 176 125 129
Cash and Bank Equivalents 16,062 11,701 18,938 18,202 97 59 95 87
Total Assets 139,238 121,758 126,995 131,679 845 614 635 627
Liabilities
Loans and Borrowings 12,289 13,758 12,094 6,815 75 69 60 32
Bank Overdraft 16,496 10,268 8,268 6,268 100 52 41 30
Current Income Tax Liabilities 846 968 1,406 2,083 5 5 7 10
Deferred Fair Value Gain on Loan - 441 441 441 - 2 2 2
Trade and Other Payables 52,515 34,183 47,344 50,452 319 172 237 240
Deferred Taxation 82 74 74 74 0 0 0 0
Loans & Borrowings 12,254 13,952 3,522 1,985 74 70 18 9
Non- Curr. Deferred Fair Val Gain on Loan - 1,433 1,433 1,433 - 7 7 7Non-Current Trade and Other Payables 422 400 400 400 3 2 2 2
Total Liabilities 94,904 75,477 74,982 69,952 576 380 375 333
Capital and Reserves
Share Capital 546 546 546 546 3 3 3 3
Share Premium 8,181 8,181 8,181 8,181 50 41 41 39
Foreign Exchange Reserve (248) (258) (258) (258) (2) (1) (1) (1)
Revenue Reserve 3,959 6,002 10,789 19,099 24 30 54 91
Treasury Stock - (1,389) (1,389) (1,389) - (7) (7) (7)
Non Controlling Interest 31,897 33,198 34,144 35,548 194 167 171 169
Shareholders' funds 44,335 46,281 52,014 61,728 269 233 260 294
Total liabilities and equity 139,238 121,758 126,995 131,679 845 614 635 627
Key Ratios 2014A 2015A 2016E 2017F 2014A 2015A 2016E 2017F
Profitability
Return on Average Equity 10.3% 12.8% 19.2% 24.7% 10.3% 8.2% 5.6% 6.6%
EBITDA Margin 4.0% 3.7% 7.1% 8.6% 4.0% 3.7% 7.1% 8.6%
EBIT Margin 4.8% 7.0% 7.9% 9.3% 4.8% 7.0% 7.9% 9.3%
Pretax Profit Margin 3.5% 5.6% 6.3% 8.7% 3.5% 5.6% 6.3% 8.7%
Net Profit Margin 2.6% 4.6% 5.2% 7.1% 2.6% 4.6% 5.2% 7.1%
Valuation Multiples
P/E (x) 82.9 63.8 39.1 26.3 82.9 63.8 39.1 26.3
P/B (x) 8.3 8.0 7.1 6.0 8.3 8.0 7.1 6.0
Dividend Yield (%) 0.7% 1.0% 1.2% 1.5% 0.7% 1.0% 1.2% 1.5%
8/17/2019 CardinalStone Research - Forte Oil Plc_Higher Fuel Margins, Geregu Upgrade, A Plus for 2016 Earnings
9/10
Page | 9
Company Update
Forte Oil PlcEquity Resea
Disclosure
Analyst Certification
The research analyst(s) denoted by an “*” on the cover of this report certifies (or, where multiple research analysts are primarily responsible for
this report, the research analysts denoted by an “*” on the cover or within the document individually certifies, with respect to each security or
issuer that the research analyst(s) cover in this research) that: (1) all of the views expressed in this report accurately articulate the research
analyst(s) independent views/opinions, based on public information regarding the companies, securities, industries or markets discussed in this
report. (2) The research analyst(s) compensation or remuneration is in no way connected (either directly or indirectly) to the specific
recommendations, estimates or opinions expressed in this report.
Analysts’ Compensation: The research analyst(s) responsible for the preparation of this report receive compensation based upon various factors,
including the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues, which include revenues from,
among other business units, Investment Banking and Asset Management.
Investment Ratings
CardinalStone employs a 3-step rating system for equities under coverage: Buy, Hold, and Sell.
Buy ≥ +15.00% expected share price performance
Hold +0.00% to +14.99% expected share price performance
Sell < 0.00% expected share price performance
A BUY rating is given to equities with strong fundamentals, which have the potential to rise by at least +15.00% between the current price and the
analyst’s target price
An HOLD rating is given to equities with good fundamentals, which have upside potential within a range of +0.00% and +14.99%,
A SELL rating is given to equities that are highly overvalued or with weak fundamentals, where potential returns of less than 0.00% is expected,
between the current price and analyst’s target price.
A NEGATIVE WATCH is given to equities whose fundamentals may deteriorate significantly over the next six (6) months, in our view.
CardinalStone Research distribution of ratings/Investment banking relationships as of December 31, 2015
Rating Buy Sell Hold Negative Watch
% of total recommendations 57% 17% 23% 3%
% with investment banking
relationships
33% 0% 50% 17%
Valuation and Risks: Please see the most recent company-specific research report for an analysis of valuation methodology and risks on any
security recommended herein. You can contact the analyst named on the front of this note for further details.
Frequency of Next Update: An update of our view on the company (ies) would be provided when next there are substantial
developments/financial news on the company.
Conflict of Interest: It is the policy of CardinalStone Partners Limited and its subsidiaries and affiliates (individually and collectively referred to as
“CardinalStone”) that research analysts may not be involved in activities that suggest that they are representing the interests of Cardinal Stone in
a way likely to appear to be inconsistent with providing independent investment research. In addition, research analysts’ reporting lines are
structured to avoid any conflict of interests. For example, research analysts are not subject to the supervision or control of anyone in
CardinalStone’s Investment Banking or Sales and Trading departments.
8/17/2019 CardinalStone Research - Forte Oil Plc_Higher Fuel Margins, Geregu Upgrade, A Plus for 2016 Earnings
10/10
Page | 10
Company Update
Forte Oil PlcEquity Resea
However, such sales and trading departments may trade, as principal, based on the research analyst’s published research. Therefore, the
proprietary interests of those Sales and Trading departments may conflict with your interests.
Company Disclosure:
CardinalStone may have financial or beneficial interest in securities or related investments discussed in this report, which could, unintentionally,
affect the objectivity of this report. Material interests, which CardinalStone has with companies or in securities discussed in this report, are
disclosed hereunder:
Company Disclosure
Forte Oil Plc j
a. The analyst holds personal positions (directly or indirectly) in a class of the common equity securities of the company
b. The analyst responsible for this report as indicated on the front page is a board member, officer or director of the Company
c. CardinalStone is a market maker in the publicly traded equities of the Company
d. CardinalStone has been lead arranger or co-lead arranger over the past 12 months of any publicly disclosed offer of securities of
the Company
e. CardinalStone beneficially own 1% or more of the equity securities of the Company
f. CardinalStone holds a major interest in the debt of the Companyg. CardinalStone has received compensation for investment banking activities from the Company within the last 12 months
h. CardinalStone intends to seek, or anticipates to receive compensation for investment banking services from the Company in the
next 3 months
i. The content of this research report has been communicated with the Company, following which this research report has been
materially amended before its distribution
j. The Company is a client of CardinalStone
k. The Company owns more than 5% of the issued share capital of CardinalStone
l. CardinalStone has other financial or other material interest in the Company
Important Regional Disclosures
The analyst(s) involved in the preparation of this report may not have visited the material operations of the subject Company (ies) within the past
12 months. To the extent this is a report authored in whole or in part by a Non-U.S. analyst and is made available in the U.S., the following areimportant disclosures regarding any Non-U.S. analyst contributors: The Non-U.S. research analysts (denoted by an * in the report) are not
registered/qualified as research analysts with FINRA; and therefore, may not be subject to the NASD Rule 2711 and NYSE Rule 472 restrictions on
communications with a subject company, public appearances and trading securities held by a research analyst account. Each analyst (denoted by
an *) is a Non-U.S. Analyst and is currently employed by Cardinal Stone.
Legal Entities
Legal entity disclosures: CardinalStone Partners is authorized and regulated by the Securities and Exchange Commission (SEC) to conduct
investment business in Nigeria.