2303 GMT - Citi thinks Karoon Energy's shares could rise over the next 90 days as the company mulls a deal for the floating production storage and offloading vessel at the Bauna field in Brazil. Analyst James Byrne thinks a deal could boost Karoon's net present value and EPS. Eliminating the cost of leasing the vessel would more than offset any increase in depreciation and amortization, Citi says. That's because "the D&A would be spread over a longer period and with a higher resource base, seeing consensus EPS sharply higher in our view," Citi says. Also, the bank expects an update on the Neon deposit's resource. That would be positive as Karoon's stock doesn't appear to include any value for Neon, Citi says. Karoon ended Thursday at A$1.535. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
January 30, 2025 18:03 ET (23:03 GMT)
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