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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 6 research reports from 1 professional analysts.
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ABENGOA SA -CL A
ABENGOA SA -CL A
A progressive, and limited, restart in sight
07 Mar 17
Abengoa reported its FY16 results Abengoa recorded revenues of €1,510m and EBITDA of €-241m in 2016. These figures exclude the impact from the Bioenergy activity and the concessional Brazilian transmission lines, which have been classified as discontinued operations. The net result represents a loss of €7,629m, mostly due to the negative impact from the impairment of certain assets (Bioenergy plants, transmission lines in Brazil, generation assets in Mexico and Chile), and tax credits for a total amount of €6,036m. In Q4 16, the company completed several fundamental milestones in the execution of its restructuring process, including the approval on 22 November at the Extraordinary General Meeting of the implementation of the restructuring agreement by shareholders, incuding the share capital increase and the designation of the new board of directors.
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.
Strong trading leads to upgrades
22 Mar 17
On the back of today’s positive trading update and slightly upgraded profit forecasts for FY2017, FY2018 and FY2019 we have reviewed our DCF analysis. This has led to an increased DCF valuation per share of 1500p (from 1200p) which we have made our new target price (from 1200p). Both TFP and JC Paper have contributed to the upgrades shown in the table below as have favourable currency movements. With the potential for further upgrades due to capitalising 3DP costs to come we maintain our Add recommendation.
Small Cap Breakfast
21 Mar 17
First Sentinel—Investment company expecting NEX admission/introduction on 24 March. £636k raised pre-IPO. BioPharma Credit—Expected Gross Initial Acquisition Proceeds now c.$338m. Gross Cash Proceeds capped at $423m with placing and open offer. Results expected 23 March with admission now due 30 march. Tufton Oceanic Assets- The Company intends to invest in a diversified portfolio of second hand commercial sea-going vessels where the Investment Manager believes that an attractive opportunity exists in shipping. $150m raise. Admission 3 April.
Bang to rights
21 Mar 17
Tullow unexpectedly announced a US$750m rights issue on Friday at a 45.2% discount to the previous close. While this step confirms our investment thesis, the scale of the discount and the timing look like a slap in the face for investors and/or indicative of a weaker financial position than we are modelling. We publish revised estimates to reflect the impact of the issue and cut our Target Price to 215p per share (from 245p). We maintain our Hold recommendation.
Panmure Morning Note 22-03-2017
22 Mar 17
Acacia Mining and Endeavour Mining confirmed merger talks have now ended with Endeavour claiming an inability to “create adequate value for Endeavour shareholders”, most likely, we believe, given the disappointing ruling from the Tanzanian government on copper-gold concentrate sales. We were positive on the merger and believed a credible London listed Pan-African producer capable of challenging Randgold, would have been established. We make no change to our Hold recommendation today, and expect the shares to be marked lower in early trade.