Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on APERAM. We currently have 6 research reports from 1 professional analysts.
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Q3 and FY16 outlook fully in line
08 Nov 16
Aperam released Q3 16 results. Revenues reached US$1,015m (-8.8%), EBITDA US$124m (+14.8%), EBIT US$81m (+20.9%) and net income US$54m (+74). Over 9 months, sales reached US$3,212m (-11.6%), EBITDA US$359m (-9.3%), EBIT US$234m (-10.7%) and net US$156m (+12.2%). Net debt at the end of Q3 amounted to US$241m (vs US$280m in Q2). The group expects EBITDA to slightly increase in Q4 vs Q3, with full-year EBITDA thus reaching at least US$483m.
H1 results: decent with some hopes for improvement
27 Jul 16
Aperam released H1 numbers. Sales reached US$2,197m (-12.8%), EBITDA US$235m (-18.4%), EBIT US$153m (-21.5%) and net income US$102m (-5.6%). Free cash flow (ex-dividend) amounted to US$93m (-8.8%). Net debt at the end of Q2 was US$280m vs US$338m in Q1 and US$316m at year-end 2015. The group expects Q3’s EBITDA to be similar to Q2’s, which would imply c. US$360m in EBITDA over 9 months, with a further decrease in net debt.
Very decent Q1 16 results
05 May 16
Q1 16 revenues reached US$1,076m (-14.5%), EBITDA US$112m (-15.8%), EBIT US$73m (-15.1%) and net income US$49m (+16.7%). Net debt at the end of Q1 16 amounted to US$338m vs US$316m at year-end 2015 and US$508m in Q1 15. The company anticipates a « slight increase » in EBITDA for Q2 while the net debt should « slightly decrease ».
FY15 in line, while outlook is rather unclear
11 Feb 16
Aperam released its FY15 results. Revenues reached US$4,716m (-14%), EBITDA US$501m (-8%), EBIT US$327m (+10%), and the net result US$172m (+81%). Net debt at year-end 2015 amounted to US$316m vs US$536m a year earlier. The dividend proposed will be US$1.25 (vs zero) and in line with what was already announced, to be paid in four installments (March, June, September, December). The outlook calls for a slight increase in EBITDA in Q1 16 vs Q4 15 where it reached US$105m. This compares to US$133m in Q1 15.
Tough times for all players
06 Nov 15
Aperam 9 months figures show a 13.3% decline in sales to US$,635m, a decrease in EBITDA of 8% to US$396m, a slight increase in operating income (+7.8%) to US$262m and, lastly, a strong increase in net income to US$139m (vs US$76m). Net debt at the end of Q3 reached US$419m vs US$454m in H1. The group also indicated Q4 EBITDA should be "comparable to Q3", thus implying a full-year EBITDA in the €500m region. A dividend of US1.25 will be proposed at the AGM.
H1 15 results: good and in line; cautious tone though going forward
29 Jul 15
Aperam released H1 15 results. They show sales down 11.1% to US$2,522m, EBITDA down 1.7% to US$288m, EBIT up 21.1% to US$195m (on lower depreciation/impairments, keeping in mind the forex impact since the reporting is in US$) and the net result almost doubling to US$108m (vs US$55m). Net debt at the end of H1 15 stood at US$454m, down from US$508m a quarter earlier. Looking forward, the group expects EBITDA in Q3 to be lower than in Q2 due to seasonality and the current economic environment, with net debt expected to decrease slightly further.
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.