Energy morning research package

Issuing $450 mm through MTNs

ANNOUNCES $150 MM PREF OFFERING

Impact: Neutral, as the Company looks to refinance and reduce its outstanding credit facility. Including this bought deal, preferred equity will be valued at $675 mm - $725 mm; we would assume that the impact to CFPS and EPS will be net neutral as preferred share dividends will offset interest costs.

ISSUES 10-YEAR NOTE AT 3.85%

Impact: Neutral Capital Power has issued a C$160 mm 10-year unsecured note that carries an interest rate of 3.85%. The purchaser is Prudential Capital Group, who also holds a US$75 mm note issued by a wholly owned subsidiary of Capital Power. This new note ranks pari-passu with Capital Power's other senior unsecured borrowings.

Reports Positive 2Q16 and 6.8% Dividend Increase

Capital Power’s 2Q16 results were positive: adjusted EPS was $0.30/share (FCC/ Street $0.18/share); FFO was $106 mm (FCC $88 mm). The Company increased its quarterly dividend by 6% to an annualized $1.56/share. We have increased our 12-month target price to $19.00/share and forecast a 12-month total return of 2% from the July 25, 2016 closing price of $20.06/share.

REPORTS POSITIVE 2Q16 AND 6.8% DIVIDEND INCREASE

Capital Power reported strong results in 2Q16 due higher than expected generation and success with its trading desk to realize power prices well above the average spot price over the quarter.

1Q16 Results: Adj. EPS $0.33 (“Street”: $0.34, FCC $0.33)

Capital Power’s adjusted earnings of $0.33/share were in line with FCC/Street estimates.

1Q16 RESULTS: ADJ. EPS $0.33 ("STREET": $0.34, FCC $0.33)

Capital Power's reported adjusted EPS of $0.33/sh was in line with FirstEnergy's estimated $0.33/sh and the street's $0.34/share. The adjustment does not include the $46 mm post-tax charge for Capital Power's termination of the Sundance PPA, effective March 24, 2016; with this charge, actual EPS was a loss of $0.11/sh.

Renold - Strong end to FY24: EPS up 11%. Robust FY25: EPS up 27.6%

The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme

Morning Note – 16 April 2024

Billington Holdings - Record result boosts dividend; forecasts upgraded

FY23 results show very strong growth over FY22, driven by strong Structural Steel activity, with results slightly ahead of upgraded profit expectations, while stronger than expected cash flow resulted in an unexpectedly generous dividend of 33p (offering a FY23 yield of 7.0%). The group now has net cash of £22.1m and is debt free and is therefore in a strong position for potential M&A activity. Following the recent £90m of new orders to increase the order book to record levels we conservatively

Plant Health Care - China distribution with AMVAC

Plant Health Care announced it has signed a distribution agreement with AMVAC, an American Vanguard Company, to support commercialisation of novel fertiliser products incorporating Plant Health Care's Harpinαβ in China starting in 2024. The novel product combines Harpinαβ technology with an AMVAC fertiliser and is expected to help growers improve crop quality and yield as part of an integrated and environmentally responsible crop production programme. AMVAC continues to evaluate Plant Health Car

Q1 Operating Results

Another Good Year of Diversified Growth with More to Come in 2024 CCapital have released their Q1 operating results. Overall, revenue has come in slightly lower than expected at $80.2m vs TamE of $85.9m but is largely tracking in line with our FY24 annual estimate and we note the company has maintained guidance. Drilling revenue for this quarter was impacted by a fall in utilisaztion rates as well as general remobilisation geographically but we expect a strong recovery throughout the year as k

Morning Note – 15 April 2024

Warns on brine supply costs

Severfield - Multiple positives should excite investors

Severfield’s trading update indicates that FY23 results are expected to slightly exceed market expectations and the company ends the year with a record UK and Europe order book. Furthermore, with a positive trading outlook and net debt coming in lower than expected, Severfield has announced a £10m share buyback, highlighting the cash-generative nature of the company and management’s confidence in its position. The stock trades on an FY25 P/E of less than 6x and yields 7%, which we believe appear

SP Angel . Morning View . Copper prices hold higher as China processing fees fall below $0/t amid low feedstock availability

PROGRESSIVE: Severfield: Targeted acquisition strategy aids growth path

Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.

Invinity Energy Systems - Update on Strategic Investment

Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.

LIBERUM: Severfield: Erratum: Better EPS and cashflow, and buyback

PROGRESSIVE: Severfield: Step change in European and Indian outlook

Severfield’s full-year results to March will be ‘slightly above’ the Board’s expectations, according to today’s trading update, with net debt significantly better. We maintain our PBT estimates for both forecast years, which are ahead of consensus, but reduce our net debt for FY24E. Record orders were boosted by the steel specialist’s European operations, after last year’s Voortman acquisition, while the Indian JV has seen ‘another step up in profitability’. The group has also launched its first

Clean and competitive fertiliser

FY results: strong cash flow