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Research Tree provides access to ongoing research coverage, media content and regulatory news on SSAB AB-A SHARES. We currently have 7 research reports from 1 professional analysts.
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SSAB AB-A SHARES
SSAB AB-A SHARES
Q3 16 in line; some hopes on prices but Q4 to be softer
28 Oct 16
SSAB released Q3 results. Revenues reached SEK13,477m (-1%), EBITDA SEK1,635m (x2.2), EBIT SEK707m (vs SEK-191m) and net profit SEK591m (vs SEK-285m). Over 9 months, revenues reached SEK40,912m (-9.1%), EBITDA SEK3,885m (+12.3%), EBIT SEK1,106m (vs SEK635m) and the net result SEK870m (vs SEK167m). Net debt at the end of Q3 was SEK18.2bn (vs SEK18.4bn in H1 and SEK23.1bn by year-end 15 (pre-capital increase)).
H1 16: not bad; let’s not get too excited though
22 Jul 16
Sales reached SEK27,435m (-10.8%), EBITDA SEK2,329m (-15.2%), EBIT 468m (-44.7%), net income SEK491m (-30.5%). These figures exclude « items affecting comparability », which are now quite low though (SEK-79m in H1 16 vs SEK-39m in H1 15 at the operating level). Operating cash flow reached SEK1,228m (vs SEK2,246m), mainly achieved in Q2 (SEK1,151m) and net cash flow SEK415m.
Conditions of the rights issue
24 May 16
The group will proceed with a rights issue of Class B shares amounting to c.SEK5bn with preferential rights for existing shareholders in SSAB. Shareholders in SSAB are entitled to subscribe for 7 new B shares for 8 old A and/or B shares held. The subscription price is SEK 10.50 per share. For subscriptions to shares that will be registered with Euroclear Finland and listed on Nasdaq Helsinki, the subscription price is to be paid in euros based on the European Central Bank EUR/SEK reference rate on 31 May 2016. The subscription price in euros will be announced via a press release on or about 31 May 2016.
SSAB’s uninspiring Q1 16 and a SEK5bn rights issue
22 Apr 16
Sales reached SEK12,964m (-16.1%), EBITDA SEK764m (-50.%), operating income SEK -190m (vs SEK564m) , net profit SEK-131m (vs SEK314m). Operating cash-flow reached SEK77m (vs SEK784m last year). The group expects stable demand in Q2 with slightly higher prices. Net debt at the end of Q1 stood at SEK23,213m vs 23,156 (at the end of FY15).
FY15: nothing to dream about; decent cash flow though
12 Feb 16
SSAB released FY15 results. Sales reached SEK56,864m (-5.4% pro forma), EBITDA SEK3,655m (-13.3%), operating income SEK-128m (vs SEK1,005m), and a net result of SEK-400m (vs SEK112m). On a clean basis, adding back items affecting comparability, EBITDA would be SEK3,541m and operating profit SEK-242m. Net debt at year-end 2015 reached SEK23,156m (vs SEK24,674m in FY14). No dividend will be proposed. The group also annnounced a workforce reduction (465 or c.3%) to be negotiated before April.
SSAB’s 9m numbers: a bit weak
22 Oct 15
Sales reached SEK44,365m (+36.2%), EBITDA SEK3,498m (+4.3%), operating profit SEK674m (-13%), and the net result SEK-206m (-45%). As reminder, Ruukki is consolidated since 29 July 2014. Also remember that these numbers exclude "items affecting comparability", mainly write-downs and restructuring charges (SEK-39m in 9m 2015 and SEK-261m on operating profit in 9m 2014). Net debt at the end of Q3 amounted to SEK24,814m (SEK24,018m in H1). The group also announced it will initiate negotiations to reduce the workforce in Finland (i.e. in former Ruukki) by 295 people which compares to 2,900 in Ruukki and 16,000 overall (i.e. 2%).
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).
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.