Research, Charts & Company Announcements
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.
Frequency of research reports
Research reports on
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.
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.
24 Nov 16
Quixant* (QXT): Gaming gains (CORP) | SCISYS* (SSY): Bringing good news from Germany (CORP) | Hayward Tyler Group*: Contract wins (CORP) | Sound Energy (SOU): TE-7 flow rate and fund raise (BUY) | Water Intelligence* (WATR): Growth and improving returns in a defensive market (CORP) | Imaginatik* (IMTK): Interim trading update (CORP)
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.