Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BANKERS PETROLEUM LTD. We currently have 41 research reports from 3 professional analysts.
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BANKERS PETROLEUM LTD
BANKERS PETROLEUM LTD
Final Approval to Close Acquisition by GeoJade Petroleum Received
12 Sep 16
Geo-Jade Petroleum has received Chinese State Administration of Foreign Exchange (SAFE) approval to complete the acquisition of Bankers Petroleum for C$2.20 per share. There are no additional regulatory hurdles for Geo-Jade to acquire Bankers. It is expected that completion of the agreement to acquire Bankers will take approximately two weeks, and will be finalized prior to September 30, 2016. Bankers stock will be delisted prior to the end of September 2016. With this positive update, and due to the stock being halted at $2.18 per share prior to the announcement, we have adjusted our ranking from Outperform to Tender. Our target price of $2.20 per share matches the acquisition price.
ANNOUNCES THE SUCCESSFUL RESOLUTION OF THE TAX ASSESSMENT DISPUTE
29 Aug 16
Market Impact: Positive. Bankers has announced that the tax assessment dispute has been positively resolved. As expected, a third-party auditor determined that Bankers did report its expenses properly. The Company has paid a total of US$37 mm (equivalent to C$0.18 per share) that can now be recaptured. Recall, the original tax assessment was for US$57 mm (equivalent to C$0.28 per share). The acquisition of Bankers by Geo-Jade Petroleum is ongoing. Resolution of the tax dispute should be viewed positively in the context of the acquisition proceeding.
ANNOUNCES 2Q16 RESULTS
11 Aug 16
Market Impact: Neutral. The pending acquisition by Geo-Jade at a price of C$2.20 per share outweighs 2Q16 results. The acquisition is expected to close by September 30, 2016 and only remains subject to regulatory approval of the Chinese State Administration of Foreign Exchange (SAFE). If SAFE approval is not received by September 30, 2016, Bankers is entitled to the US$20 mm (equivalent to C$0.10 per share) reverse termination fee, should Bankers elect to terminate the agreement.
ANNOUNCES EXTENSION TO ACQUISITION AGREEMENT WITH GEO-JADE PETROLEUM
31 Jul 16
Market Impact: Neutral. The acquisition agreement between Bankers and Geo-Jade has not yet closed, due to delays in receiving regulatory approval from the Chinese Stare Administration of Foreign Exchange (SAFE). The delay is not unexpected, given the timing to date and the typical nature of government bureaucracies. Bankers stock is already trading at a discount of 9% to the acquisition price of $C2.20 per share.
REPORTS 2Q16 OPERATIONAL UPDATE
06 Jul 16
Market Impact: Neutral. The acquisition of Bankers by Geo Jade is still expected to close in July 2016e, which outweighs a small production curtailment in 2Q16 due to an interruption at the port facility and the shut-in of production for some maintenance and optimization work.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
Playing the long term, with short-term risks
16 Feb 17
After the publication of the annual results, we update our view and highlight the key points. Q4 16 key highlights As a reminder, the company reported results 30% below expectations at $400m for Q4 16. By division: 1) In upstream, underlying replacement costs profit came to $400m, vs. a loss a year earlier of $728m and a loss of $224m in Q3 16, reflecting the ongoing lower costs which have benefited from simplifications, efficiencies and lower exploration write-offs. In the US, the loss is still $147m. Production came in at 2.19mbpd, down 5.5% yoy due to disposals and up 1.8% on an underlying basis thanks to ramp-ups. One of the key events during the quarter was the renewal of BP’s onshore concession in the UAE with a 10% interest in the ADCO onshore oil concession. In terms of outlook, production should be higher in 2017 and will depend on the timing of project start-ups, acquisitions, divestments, and OPEC quota. Also the Abu Dhabi concession will be visible as from Q1 17. 2) In downstream, replacement costs profit came to $877m, down from $1.2bn a year ago and $1.4bn in Q3 16. The US division showed a loss of $371m vs a gain of $1.25bn. Non-US Fuel business earnings halved to $417m due to the weaker refining environment as well as the impact from the particularly large turnaround at the Whiting refinery. In lubricants, profit rose to $357m, reflecting the continued strong performance in its growth markets and premium brands as well as simplifications and greater efficiencies. The margin should remain unchanged for Q1 17. 3) Rosneft. Underlying replacement costs profit came to $135m, down from $235m a year ago, affected by the increased government take. Production was at 1.15mbpd, up from 1.03mbpd a year ago. This reflects the completion of the acquisition of Bashneft and Rosneft’s increased stake in the PetroMonagas venture. BP received a dividend of $322m after deduction of the withholding tax, in July 2016. On the Macondo oil spill, the charge taken for the Q4 16 pre-tax was $530m. This reflects BP’s latest estimates for claims including business economic loss. The pre-tax cash outflow on costs related to the oil spill for the full year 2016 was $7.1bn. Cash flow Excluding the Gulf of Mexico payment, the operating cash flow was $4.5bn. Underlying operating cash flow excluding the oil spill-related payment was $17.8bn for the full year. Proceeds during the year and the scrip dividend were not enough to cover capex and the cash dividend. Gearing at the end of the year increased to 27% ($35.5bn debt), in the high range of the group’s target of 20-30%. Organic capital was $16bn, below original guidance of $17bn to $19bn. Capex in 2017 should be close to $16-17bn. Divestment proceeds should be higher in 2017, close to $5bn and then reducing by $2-3bn per year after 2018. The total costs of the Deepwater payment should fall to $2bn in 2018 and then $1bn per year as from 2019. In 2017, this should be close to $5bn. All in all, including the latest acquisitions, cash flow break-even should be close to $60/bbl in 2017.
Share & share alike
14 Feb 17
The rally in the last fortnight, highlighted in the table, reflects a continued flow of positive updates and economic news. The FTSE 250, Small cap and Fledgling indices have reached record highs. We are in the lull ahead of results for those companies with a December year end, a welter of economic data regarding the UK economy, the State of the Union address in the US on 28 February and the UK Budget on Wednesday 8 March. We will learn at that stage the latest forecasts from the Office of Budget Responsibility. As highlighted previously, the reaction to corporate updates will continue to set the tone.
GMP FirstEnergy ― UK Energy morning research package
17 Feb 17
Enquest (ENQ LN): Speculative Buy, £0.65: Kraken FPSO in the field and hooked up in the North Sea | Ithaca Energy (IAE LN/CN)6: BUY, £1.40: Stella First Hydrocarbons in the North Sea | Bowleven (BLVN LN) (not covered): Denies claims made by Crown Ocean Capital