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Research Tree provides access to ongoing research coverage, media content and regulatory news on ABENGOA SA -CL A. We currently have 5 research reports from 1 professional analysts.
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ABENGOA SA -CL A
ABENGOA SA -CL A
Narrow escape from bankruptcy
19 Aug 16
It is confirmed that Abengoa will survive thanks to a combination of debt to equity swap and new debt funding. Old shareholders will be left with 5% of the company. Signing off by stakeholders should be completed by late October. Debt holders should represent at least 75% of the outstanding debt to get the plan through. Non-players will be left with 3% of their principal. Globally, the total input of liquidity represents €1,169m of which €515m has already been received by the company since September 2015.
Abengoa reported losses in Q1 amid a restructuring process
13 May 16
While negotiations with creditors are still in progress to reach a final restructuring agreement, the company reported Q1 16 results showing a significant slowdown in all activities, coupled with a strong negative impact on the financial results. Main facts In Q1 16,revenues reached €719m and EBITDA €48m corresponding to a 6.7% margin, versus €1,559m and €321m in Q1 15. The net result represents a loss of €340m mainly due to the decrease in activity and the negative impact from the valuation of certain financial instruments. Concerning the financial restructuring process, the company reported it has filed with the Mercantile Court of Seville nº 2 an application for the judicial approval of the standstill agreement which garnered support from 75.04% of the company’s lenders. The standstill agreement will enable the company to continue negotiations on its refinancing plan, and Abengoa aims to achieve a global agreement as soon as possible. The recent judicial approval for the standstill agreement was obtained, extending protection from creditors until 28 October 2016.
New restructuring plan: a heavy price to pay for shareholders
17 Mar 16
Abengoa detailed yesterday afternoon, in a conference call, its restructuring plan to avoid bankrupcy. We retain the main following points: The new Abengoa will have a less capital intensive business model, leading to a refocus on Engineering & Construction and third-party projects (which is about €4.2bn revenue and double-digit EBITDA), and selected concession-type projects (minority stakes limited to 10% instead of a majority stake). A 45% reduction in structuring costs expected in two years from €450m to €250m, while non-core businesses will be sold by Q4 16. A new management is in place. Restructuring plan: 1/ Debt reduction of 70% (corresponding to €5.5bn debt) in exchange for 35% of post-reorganisation equity. 2/ New money: facility (€1.5-1.8bn) and new bonds (€800m) in exchange for respectively 55% and 5% of equity. Consequently, equity assigned to creditors will represent 95% and, as a result, shareholders will maintain 5% of post reorganisation equity, be entitled to up to 5% of warrants after full amortisation of new debt, roll-over debt and old debt struck at par with a 5.5 year maturity. The company will have €4,923m corporate net debt post restructuring. The listing will be maintained and the dual share structure will be collapsed into a single class share holding political and economic rights. The restructuring plan is expected to be finished by 28 March 2016.
The worst case scenario is beginning to materialise
25 Nov 15
Abengoa reported this morning that Gonvarri, which should have been Abengoa's new reference shareholder and the main support for the pending €650m capital increase, has withdrawn from the transaction as conditions to which the agreement was subject to have not been satisfied. The company reported it will continue negotiations with banks and aims at "reaching an agreement that ensures the company’s financial viability, under the protection of article 5 bis of the Spanish Insolvency Law (Ley Concursal), which the company intends to apply for as soon as possible".
Strong Q3 cash outflow stress; further capital needed
18 Nov 15
Abengoa reported Q3 15 results which were weaker than expected. The strong backlog was maintained at €8.8bn at the end of September 2015 but the slow-down in E&C's Q3 15 revenue led to a 4% decline yoy in the first 9M sales (vs +3% at the end of H1 15). In Q3 15 alone, it reached €1,483m, a -16% yoy versus Q3 14. EBITDA was €891m for 9M15, a 2% yoy decline (vs €907m). For Q3 alone, the EBITDA reached €241m (vs €312m last year), corresponding to a 16.2% margin. The company failed to confirm its FY15 guidance of 8-10% revenue growth (€7,750-7,850m) with an EBITDA of €1,330-1,380m (margin at c.17.3%), as this now looks clearly out of reach. Besides these figures, Q3 15 corporate FCF was a strong negative cash burn of €639m and corporate liquidity was impacted due to the business slow-down in Q3 and cash outflow from WC. The company reported several strategic actions put in place to restore liquidity and reinforce the balance sheet: •New capital increase for €250m to be fully subscribed by new investors (subject to conditions) and a €400m rights issue, together with a new financial package. •General expenses reduction plan launched with a revised target of €100m/year in savings. •It is making progress in all the announced strategic measures to improve leverage ratios.
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.
20 Feb 17
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Opuama production restarts
21 Feb 17
Eland has confirmed the successful restart of exports from OML 40 through the new shipping alternative that it has implemented. Sales from the export terminal are expected imminently, re-establishing cash generation for Eland. Cash at YE16 was US$11.1m which has since reduced to US$5.9m, mainly reflecting initial operating expenses for the shipping alternative. While it is early days, Eland has demonstrated its ability to restart exports and production from OML 40 following the shut-down of the Forcados terminal a year ago. Production to date is averaging around 7kbd and we expect that to ramp up as Opuama operational performance improves. At US$55/bbl Brent, we estimate Eland is generating a net cash margin of around US$25/bbl. We reiterate our Buy recommendation and 95p per share Target Price.
Small Cap Breakfast
24 Feb 17
GBGI—Schedule One update from integrated provider of international benefits insurance. Raising £32m at 150p. Admission expected tomorrow. Anglo African Oil & Gas— Admission expected early March. Acquiring stake in producing near offshore field in the Republic of the Congo. 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.
E&P projects ramp-up and disposals to support 2017
20 Feb 17
After the publication of the annual results, we have updated our model and highlight the key points. Q4 16 key highlights As a reminder, the company reported results of $1.8bn, $0.5bn below expectations for Q4 16. One-offs were $763m for the quarter mainly driven by the integrated gas division related to the weakening Australian dollar and the deferred tax position in Malaysia. By division: 1) Integrated gas’s clean earnings came in at $907m, down 27% yoy. The decrease is driven by the step-up in depreciation resulting from the BG acquisition and the increase associated with the start-up of Gorgon. Other items related to the BG Group consolidation impacted the division. The impact of higher oil prices was more than offset by the decline in LNG prices. Q4 16 production was 908kbpd, up from 633kbpd a year ago thanks to the integration of BG. For the full year, the integrated gas division reported $3.7bn of clean earnings, -27% compared to the previous year. 2) The upstream division showed a small profit of $54m, compared to a loss of $1bn a year earlier. Higher oil prices and increased volumes thanks to the BG integration supported the results driven by an improved operational performance. For the full year, the upstream division reported a loss of $2.7bn compared to a loss of $2.25bn in 2015. 3) Downstream’s earnings came in 12% lower yoy to $1.34bn, impacted by lower trading and refining margin and higher taxation. The results are split between oil products ($823m, down 39% yoy) and chemicals ($516m, up 184%). In oil products, refining trading came in at $77m, down from $771m a year ago. Marketing came in at $746m compared to $631m a year ago on lower operating expenses. Chemicals came in higher on stronger industry conditions driven by the tight supply in Asia and an improved operating performance. For the full year, the results came in at $7.2bn, down 26% yoy. Cash flow position Cash flow from operating activities for Q4 16 was $9.2bn, capex $6.9bn, the dividend $2.3bn, and disposals of $2.7bn which helped to reduce debt to $73bn. Gearing at the end of 2016 was 28%. The dividend was $0.47. The company is close to selling assets for $5bn, which is good news as the group still has to sell $20bn to remain on track with its deleveraging. Capex totalled $26.9bn for the full year 2016, lower than expected and it plans to reduce this in 2017 to $25bn, in the low end of the 2017-20 range of $25-$30bn. The CEO highlighted: “Production and LNG volumes included delivery from new projects, with the ramp-up continuing in 2017 and 2018. Meanwhile the company operates at an underlying cost level that is $10bn lower than Shell’s and BG’s combined only 24 months ago. Shell is gaining momentum on divestments, with some $15bn completed in 2016, announced, or in progress, and we are on track to complete our overall $30bn divestment programme as planned. Strategy is starting to pay off and in 2017 we will be investing around $25bn in high quality, resilient projects. I’m confident 2017 will be another year of progress for Shell to become a world-class investment”