Hi folks As some of your are aware I run a financial planning...

Hi folks
As some of your are aware I run a financial planning business . We use internal research of our dealer group .
I thought I would share some of the numbers of ROC which they have as buy and undervalued
Target price 61
2014 revenue estaminet 294
Operating profit 99 m
ebitda 175 m
Basic earnings part share 8 c ( PE of 5.5 )
Cash flow 117 million

The figures are broadly in line with my estimates. I estimated 300-305 as AUD revenue this year.

I think the RSC hides significant value and I still find that brokers are not across this or can't value it due luck of detail around the numbers . What I do know is that when ROC Ann the RSC , they had a matrix of variables that impacted the final return on equity . This included reserves, oil price, production . The RSC drilling program resulted in some wells ( like bentara) significantly exceeding expectations , therefore we may find when FID is finally given by Petronas , the return on equity and thus value to ROC may be significant

I am therefore valuing ROC at about 68-70 on core business and upto 80 -85 on RSC . Of course success in Bohai could increase thus further