Cathedral reported 4Q15 EBITDAS of nil (FCC: $3 mm) as pricing pressure continues to negatively impact profitability. Our forecasts suggest that Cathedral will violate its near-term EBITDAS covenants in 2Q16e. As such, further relief from the Company’s lenders may be required and we believe receiving credit facility amendments will become increasingly challenging. We have reduced 2016e EBITDAS to $5 mm from $7 mm and 2017e EBITDAs to $8 mm from $11 mm.
04 Mar 2016
4Q15 Results Contain No Surprises; Covenants may be Violated
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4Q15 Results Contain No Surprises; Covenants may be Violated
Cathedral Energy Services Ltd. (CET:TSE) | 0 0 0.7% | Mkt Cap: 69.1m
- Published:
04 Mar 2016 -
Author:
Ian B. Gillies -
Pages:
5
Cathedral reported 4Q15 EBITDAS of nil (FCC: $3 mm) as pricing pressure continues to negatively impact profitability. Our forecasts suggest that Cathedral will violate its near-term EBITDAS covenants in 2Q16e. As such, further relief from the Company’s lenders may be required and we believe receiving credit facility amendments will become increasingly challenging. We have reduced 2016e EBITDAS to $5 mm from $7 mm and 2017e EBITDAs to $8 mm from $11 mm.