Iceland - Energy payout

All,

Please find our updated pdf analysis here. We have uploaded our Excel model which we were unable to upload last week.  

In Summary, we have rotated our position from a long in Iceland’s 2025 bonds into the 2028’s taking out 16pts based on our expectation of further strong numbers in the coming quarters. We acknowledge there will be downward pricing pressure over the coming months, highlighted by the Times article quoting a Tesco presentation to suppliers characterising the market moving from “inflation to deflation” and that Tesco intend to lead the market on price cuts. We have already included this in our model.  

We are happy to discuss our note further (here).

Tomás

E: tmannion@sarria.co.uk
T: +44 20 3744 7009
www.sarria.co.uk