<a id="bm-comp-66a370ea-d724-4725-8ec4-fce7b714ae8a" name="bm-comp-66a370ea-d724-4725-8ec4-fce7b714ae8a" class="BMCustomAnchor"></a><table><tr><td bm-component-id="66a370ea-d724-4725-8ec4-fce7b714ae8a" style="vertical-align: top; width:100.000000%;"><ul><li>Q2 EBITDA 8% above on lower costs</li><li>Reduced guidance, yet only small changes to estimates</li><li>Reiterate fair value range of SEK 30-55/sh</li></ul></td></tr></table><a id="bm-comp-99eb9423-2ce2-4964-a93b-c30e1102bedb" name="bm-comp-99eb9423-2ce2-4964-a93b-c30e1102bedb" class="BMCustomAnchor"></a><table><tr><td bm-component-id="99eb9423-2ce2-4964-a93b-c30e1102bedb" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Q2 numbers above ABGSCe on lower costs</h3><p>Tethys Oil reported Q2'24 numbers slightly above our estimates. EBITDA of USD 15.7m was above ABGSCe at USD 14.5m. The beat was explained by lower opex than we had anticipated, as production, sold volumes and realised prices were pre-announced. FCF in the quarter was strong at USD 3.2m (SEK 1.0/sh) vs. ABGSCe of USD -11.0m (SEK -3.6/sh) and was positively affected by lower-than-estimated capex (FY guidance reduced) and positive WC effects. As such, the cash position grew to USD 18m (USD 15m) q-o-q.</p><h3 class="bm-h3">Reduced guidance, yet small changes to estimates after Q2</h3><p>In the Q2 report, Tethys lowered its FY'24 guidance for both production (weather effects impacting H1 production), and capex (updated work programme). As a result, we lower our capex estimates, but keep our production estimates for H2 unchanged, as the reduced guidance was caused by performance in H1. As such, our estimate revisions following the Q2 report are fairly small. The strategic review is still ongoing and there was no news related to the conclusion of this in the report. However, Tethys noted that it is looking at numerous alternatives and that the process had received strong interest. The drilling of the highly anticipated Kunooz-1 exploration well was slightly delayed. It will now start drilling in early August vs. the original plan of June/July.</p><h3 class="bm-h3">P/NAV of 0.50x and discounts USD 63/bbl</h3><p>At the current share price, Tethys is trading at a P/NAV multiple of ~0.50x to our YE'24e NAV of SEK 64/sh, and discounts an oil price of ~USD 63/bbl (P/NAV = 1). Our NAV valuation remains fairly unchanged since our last report. Consequently, we reiterate our fair value range of SEK 30-55/sh. This is equivalent to a P/NAV range of 0.5x-0.9x, which is in line with the trading range of comparable Nordic-listed E&amp;P companies.</p></td></tr></table>