Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BOURBON SA. We currently have 9 research reports from 1 professional analysts.
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Q3 prices stable qoq, but lower utilisation
03 Nov 16
Q3 adjusted revenues were €259m (-25% yoy), missing consensus expectations. Outlook 2017: clients increasing maintenance operations and starting projects to expand facilities. H1: Deep and Shallow water still weak; Subsea and Crewboats should benefit from a pick-up in maintenance activity.
Stable H1 16 EBITDAR margin but greater than expected net loss
08 Sep 16
Adjusted EBITDAR fell to €229m in H1 16 (-21% yoy, slightly above consensus estimates), but the margin was stable, at 38.2%, as direct costs decreased by 22.4% (lower vessel costs and G&A offset the higher expense for stacked vessels). However, consensus underestimated depreciation & amortisation, which came in at €157m (vs. estimates of €114m; we estimated €149m) resulting in an EBIT loss of €28m (vs. consensus profit at €13m; AlphaValue €13m loss). Higher taxes and finance costs than consensus expected resulted in a €104m net loss (vs. -€19m in H1 15). Guidance 2016 confirmed: - Adjusted revenues reduction in the same order of magnitude as H1 16 (vs. moderately lower vs. 2015); - Slight decrease in the EBITDAR margin; - Positive FCF in H2.
Q2 revenues below consensus; management sees a bottom in Q3 16
03 Aug 16
Q2 revenues were €265m (reported, -23% yoy), below consensus expectations at €286m. Guidance 2016: - Adjusted revenue reduction in the same order of magnitude as H1 16 (vs. moderately lower vs. 2015); - Slight decrease in the EBITDAR margin.
Bourbon beyond Bourbon (and its minority shareholders?)
30 Mar 16
Bourbon announced that it is buying Jaccar’s (Bourbon’s majority shareholder) companies specialising in ethane gas shipping (notably Greenship Gas). Greenship Gas owns 17 vessels (o/w 13 currently in service) and has a >50% market share in ethane transportation. Bourbon will pay $320m (o/w $100m seller’s credit, $220m bridging loan). It plans a sale-and-lease-back of 80% of the fleet ownership to refund the bridging loan. At the AGM on 26 May 2016: - The ethane business transaction will be submitted to shareholders; - Bourbon SA will change its name to Bourbon Corporation; - Jacques de Chateauxvieux will be appointed as the Chairman and CEO.
Sees demand bottoming out in 2016: we expect a decline into 2017
10 Mar 16
In H2 15, the adjusted EBITDAR (excluding capital gains) came in at €257m (-7.9% yoy), a 37.9% margin (vs. 37.2% in H2 14), above consensus estimates. The net loss was €57m (vs. €79m net profit in H2 14), broadly in line with consensus. The net debt was €1.4bn (vs. consensus at €1.3bn), a slight yoy increase. The company plans to continue paying its €1.00 dividend. Guidance 2016: - Adjusted revenues moderately lower vs. 2015; - Adjusted EBITDAR margin to decline slightly; - Higher FCF (€90m in 2015). Management expects a low in demand during 2016, with a slight rebound in H2 (maintaining production).
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).
Raising Target Price to 2,500p per share
01 Nov 16
Royal Dutch reported clean EPS of US$0.35, nearly 50% ahead of consensus. More importantly, cash flow jumped QoQ to US$8.5bn which should go a long way to confirming Shell’s capacity to maintain the current dividend, despite the increase in gearing to 29.2%. Upstream returned to profitability on an underlying basis for the first time since 1Q15. We believe these results confirm our view that Shell’s dividend can and will be maintained at US$0.47 per quarter and we increase our Target Price to 2,500p per share, given further sterling weakness.
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.