Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on CWC ENERGY SERVICES CORP. We currently have 17 research reports from 1 professional analysts.
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CWC ENERGY SERVICES CORP
CWC ENERGY SERVICES CORP
Service Rig Market Share Increases Again
11 Aug 16
CWC reported 2Q16 EBITDAS of $1 mm which was much better than our forecasted loss of $2 mm. The beat was driven by an increase in service rig market share and strong cost controls. Service rig market share increased to 13% in 2Q16, from 10% in 1Q16 and 6% in 2Q15. The Company’s current drilling rig utilization is 44%, well ahead of industry utilization of 20%. We have increased our 2016e EBITDAS to $9 mm from $6 mm and 2017e EBITDAS to $15 mm from $13 mm. Both of the increases are the result of higher service rig operating hours and margins.
27 Apr 16
CWC has announced a rights offering that we expect will generate $10.2 mm in proceeds at minimum, but could be up to $14.6 mm. A portion of these funds will be used as part of the equity cure provision in the Company’s leverage ratio. The Company has also amended its covenants providing it with increased flexibility through 1Q18. We anticipate that CWC will remain in compliance with its covenants based on our current estimates. CWC has released its 4Q15 financials, which were above our estimates due to stronger than expected margin performance in both segments. EBITDAS of $2.3 mm was above our estimate of $1.0 mm. We have increased our 2016e EBITDAS to $4.2 mm from $3.6 mm due to higher activity for CWC’s Contract Drilling business. In 2017e, we have increased EBITDAS to $10.3 mm from $9.8 mm for similar reasons.
ANNOUNCES COVENANT RELIEF AND NEW MANAGEMENT TEAM MEMBERS
15 Apr 16
Impact: Positive. Our estimates, target price and rating for CWC are currently Under Review as we await the release of the Company's 4Q15 financials. Nonetheless, we view the additional covenant relief as positive as it provides CWC additional financial flexibility.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
01 Nov 16
Since our last outlook note, Quadrise has begun to supply MSAR for extended LONO sea trials, paving the way for commercial adoption from calendar H217 onwards. In August it signed a memorandum of understanding with clients in the Kingdom of Saudi Arabia (KSA), which is a key enabler for progressing the production-to-combustion pilot there. In October it completed a placing and open offer raising a total of £5.25m (gross). This should enable it to transition comfortably to the commercial phase on successful completion of the LONO and KSA trials.
Dividends reinstated; is it time to turn (more) optimistic?
08 Dec 16
Glencore continues to surprise the markets, earlier with its fast pace of asset disposals and now with the reinstatement of dividends. The following were the key details shared with investors in a meeting held on 1 December 2016: 1/ completed $6.3bn of asset disposals; 2/ reduced net debt (including readily marketable inventories) by $12.5bn over the last 18 months; 3/ reiterated trading’s 2016 EBIT guidance towards the upper end of the $2.5-2.7bn range; 4/ expects healthy annualised 2016 free cash flows – even at Q1 16 commodity price lows; at 2017 forward prices, FCFs are guided to be $6.5bn; 5/ dividends would be reinstated from 2017 – with $1bn to be paid in two equal tranches in H1 and H2; thereafter (i.e. 2018 onwards), $1bn would be a fixed annual dividend payment (banking on the stability of trading’s cash flows) plus a minimum 25% of FCFs from industrial activities. Production guided to grow Source – Investor Presentation December 2016 While copper would be negatively impacted by the end-of-life impact at Alumbera and the Ernest Henry divestment, the output for all other commodities is guided to be higher (in varying degrees).
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.