Maurel & Prom's Solar Dawn: How Quilemba Ignites Renewable Growth and Value Creation

In a world racing to decarbonize, Maurel & Prom (M&P) has positioned itself at the forefront of Africa’s energy transition with its Quilemba Solar Project. This 80 MWp venture in Angola isn’t just a foray into renewables—it’s a strategic masterstroke that diversifies revenue streams, unlocks ESG-driven demand, and signals a scalable model for future growth. For investors, this is a rare opportunity to capitalize on a company transforming itself from an oil-dependent operator into a diversified energy powerhouse.

The Strategic Pivot: From Oil to Solar Synergies

M&P’s African oil assets—Gabon’s record-breaking 15,684 bopd production, Angola’s 4,478 bopd output, and Tanzania’s growing gas reserves—remain core to its cash flow. But the Quilemba Solar Project marks a paradigm shift. By acquiring a 19% stake in a joint venture with TotalEnergies and Sonangol, M&P is leveraging its African operational expertise to tap into solar potential. This isn’t just about reducing carbon emissions (55,000 tonnes annually by Phase 1); it’s about creating strategic synergies:

1. Operational Know-How: M&P’s familiarity with Angolan logistics and regulatory frameworks reduces execution risks.
2. Geopolitical Leverage: Partnering with state-owned Sonangol and global giant TotalEnergies grants access to local networks and technology.
3. Scalability: The project’s modular design (Phase 1: 35 MWp; Phase 2: 45 MWp) sets a template for future solar expansions across Africa.

Financial Resilience: Fueling Growth Without Sacrificing Dividends

Critics may question whether renewables investments dilute returns, but M&P’s $260 million liquidity ($377M as of March 2025) and positive net cash position ($50M) prove otherwise. The Quilemba Solar stake—just $7M for Phase 1—requires minimal capital while offering outsized upside:

• Stable Cash Flow: The project’s fixed-price Power Purchase Agreement (PPA) ensures predictable revenue, complementing oil-derived income.
• Dividend Sustainability: The proposed €0.33/share dividend (up 10% from 2024) is comfortably covered by free cash flow, even as M&P invests in growth.

The company’s low breakeven cost ($30/bbl) further insulates it from oil price volatility, allowing reinvestment in renewables without shareholder dilution.

Why Quilemba Signals a New Era of Value Creation

The Quilemba Solar Project isn’t an experiment—it’s a blueprint for M&P’s future:

1. ESG Catalyst: By reducing Angola’s reliance on diesel-powered generation, M&P enhances its ESG profile, attracting ESG-focused investors and unlocking green financing opportunities.
2. Valuation Upside: Renewables add a new growth vector, de-risking M&P’s portfolio and justifying a premium valuation.
3. First-Mover Advantage: As African nations seek to meet climate targets, M&P’s early solar foothold positions it to lead future projects in Nigeria, Senegal, or Mozambique.

The Bottom Line: Act Now Before the Sun Sets on This Opportunity

Maurel & Prom is at a pivotal crossroads. The Quilemba Solar Project isn’t just a diversification play—it’s a strategic pivot to dominate Africa’s energy future. With robust financials, proven execution in Africa, and a dividend policy that rewards investors while funding growth, this is a rare chance to back a company poised to capitalize on the twin trends of energy transition and ESG-driven demand.

The question isn’t whether renewables are M&P’s future—it’s already here. Investors who act now will secure a stake in a company set to shine.

Invest Now—Before the Sun Rises on a New Era of Returns.