Green Dragon Gas (GDG)

Business description

Green Dragon Gas is one of the largest independent companies involved in the production and sale of coal bed methane (CBM) gas in China.

Stock data

Market cap.£103m
Last close66.00p
High / Low (52 weeks)273.0p / 64.0p
Stock market listingLN
Forecast net debt (US$m)144.9
Forecast gearing ratio (%)23
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

%1m3m12m
Actual2.3(39.2)(75.8)
Relative *3.5(41.5)(78.4)

* % Relative to local index

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Company news

Green Dragon sees strong gas sales in China

Thu, 27 Apr 2017 07:08:29 GMT

Green Dragon Gas readies new block in China

Mon, 26 Sep 2016 15:17:35 GMT

Green Dragon Gas mulls China listing

Thu, 02 Feb 2017 08:45:44 GMT

Green Dragon Gas rejigs put option element of convertible bond issue

Mon, 26 Jun 2017 08:26:08 GMT

Proactive news round-up: Sirius Minerals, Green Dragon Gas, Reneuron ...

Mon, 05 Jun 2017 14:48:45 GMT

Investment summary

Green Dragon Gas (GDG) has laid the foundations for what could be a world-class CBM development; however, the company’s ability to develop and monetise this resource before PSC expiry in 2035 is contingent on funding. 2P reserves (net 549bcf) continue to rise as GDG proves gas deliverability from incremental coal seams. As it stands, GDG is funding rather than resource constrained. Our base case valuation assumes that GDG uses RBL debt capacity (contingent on overall development plan approval) to drill additional LiFaBriC wells on the GSS block, driving a group core valuation of 227p/share.

Last updated on 03/07/2017

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2015A 37.7 20.1 (0.1) 0.0 N/A 0.1
2016A 29.1 10.5 (12.3) 0.0 N/A 0.3
2017E 31.9 16.1 (4.6) 0.0 N/A 0.7
2018E 51.3 35.1 7.3 0.0 N/A 0.4

Last updated on 26/06/2017

Latest research

Latest video

Executive Interview - Green Dragon Gas

Industry outlook

GDG’s gas price is largely driven by domestic policy; however, we expect that in the medium term, domestic regulated pricing will trend towards LNG import price parity. We assume that current realisations ($7.5/mcf as a blended average of CNG and PNG prices) will remain until 2018, beyond which it will track towards Chinese LNG import price parity.

Last updated on 03/07/2017

Key management

Randeep Grewal, Chairman & CEO
Alfred Yan, CFO

Company address

Suite 3308
Two Exchange Square
Hong Kong
+852 3710 068
View website