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Research Tree provides access to ongoing research coverage, media content and regulatory news on Holmen. We currently have 14 research reports from 1 professional analysts.
Holmen witnessed a healthy performance across divisions (ex. Paperboard). Forest remained the biggest profitability-generator and Paper benefited from the sustained focus on value-added products. Even the relatively smaller divisions did pretty well. While the industry’s operating environment is becoming somewhat challenging, the group’s ownership of sizeable natural resources should render critical strategic benefits.
Healthy price tailwinds were a key driver for Holmen’s 2018 results. While Forest continued to do well – both in terms of profit generation and rendering input self-sufficiency, other divisions (ex. Paperboard) also improved in varying degrees. Even though Paperboard’s current issues and a general pricing normalisation will result in margin gains receding through to 2021, the overall attractiveness of Holmen’s (natural resources-driven) earnings profile remains unchanged.
There was no major surprise in Holmen’s Q3 results, wherein Paper and Wood Products’ pricing gains helped reduce the impact of cost headwinds and some divisional (volume) issues. While price tailwinds should moderate over time, healthy volumes across businesses, limited downside risk in case paper market headwinds are reinstated and apt input cushions from forests and energy – which also limit the group-wide emissions, should help Holmen maintain its valuation premium vis-à-vis peers.
Healthy price-volume improvements across most divisions were the highlight of Q2 18. Profit improvement in Wood Products, similar to peers, was notable. Despite cost pressure, aggravated by adverse weather conditions, (Paperboard and Forest’s) earnings remained healthy. While the business fundamentals, backed by ample natural resource endowments, remain promising, Holmen’s valuation offers limited upside at current levels.
Q4 results fell short of expectations mainly because of the higher-than-guided maintenance shutdown impact in Paperboard. Nevertheless, a turnaround in Wood Products, some improvement in Energy and stability of Forests ensured that: 1/ cash flows remained healthy enough to support attractive dividends; and 2/ debt repayments continued. Moreover, with European recovery so far progressing unscathed, the business performance should remain impressive. However, the prospect of a material earnings upgrade should be averted by a simultaneous uptick in inflationary pressure.
Holmen reported strong Q3 17 results, with performance coming slightly ahead of consensus estimates. Sales were SEK4bn (+3.6% yoy; -4.8% qoq), with all divisions posting yoy growth (4-55%), while the sequential weakness was due to seasonal softness in Forests (-8.6%) and some ‘implied’ pricing pressure in Paperboard. The adjusted EBIT was much better at SEK598m (+14% yoy; +13% qoq), with Paper (profits down 17% yoy; 20% qoq) being the only underperforming division. Quarterly net profit was SEK456m (+15% yoy; +16% qoq). Reported OCFs came in at SEK478m (-14% yoy; +7.7% qoq) while capex was SEK100m (-34% yoy; -38% qoq). Overall healthy cash flows helped further reduce (-10% vs. Q2 17-end) net debt to SEK3.6bn. Q4 profitability is guided to be impacted by a SEK100m maintenance shutdown in the Paperboard division.
Holmen again reported impressive quarterly results, with the Q1 17 performance exceeding consensus estimates (by 5-7%). Sales increased (+7.9% yoy; +4.9% qoq) to SEK4.1bn, with all segments, except for paper (marred by still declining prices) and energy (impacted by lower production), witnessing growth to varying degrees. Almost mimicking the top-line trend, adjusted EBIT came in at SEK633m (+8.2% yoy and qoq) and net profit at SEK485m (+118% yoy – with Q1 16 weighed by exceptionals of SEK232m; +9.7% qoq). While forests and paperboards remained healthily profitable, the rebound in the timber division – generating adjusted EBIT of SEK17m (similar to levels last seen in Q2-Q3 14) vs. loss of SEK5m in Q1 16 and a profit of SEK4m in Q4 16 – was surprising. The impact of a strong operating performance was also visible in the reported OCFs, which came in at SEK693m (+28% yoy; +133% qoq), also benefiting from materially lower (-77% yoy; -79% qoq) working capital requirements. On the other hand, capex was down (-48% yoy; -4% qoq) to SEK144m. As a result, net debt reduced (16% vs. Q4 16 end) further to SEK3.2bn. Management reiterated its guidance of SEK150m of paperboard maintenance shutdowns in 2017 – of which SEK50m and SEK100m would be recognised in Q2 17 and Q4 17, respectively.
Holmen ended 2016 on a convincing note as the Q4 16 (and full-year) results were ahead of AV’s (and consensus) estimates. Despite sluggish top-line, … Q4 sales were up (6.7% yoy; 3.3% qoq) to SEK3.9bn. The performance across divisions was healthy / reasonable, Forests in particular (+3.9% yoy; +16% qoq). Moreover, Energy witnessed a staggering sequential volume (+52%) and price recovery, after a dismal Q3 16. But the full-year sales were down (3.1%) to SEK15.5bn, with varying degrees of weakness in all segments (paper and energy in particular) – except for timber (+2.1%). While paper (-12%) was impacted by the Spanish mill divestment (and still feeble European paper markets), the Nordic region’s energy markets have remained challenging. …profitability improvement was impressive Q4 adjusted EBIT was SEK585m (+59% yoy; +11% qoq) while for the full-year it was (+29%) SEK2.2bn. Material yoy improvement was largely a function of the (severe) underperformance in Paperboard, Forests and Paper divisions in Q4 15. The qoq improvement was driven by Forests (even though benefiting from the sale of properties) and the restoration of some normalisation in Energy and Timber, thereby more than offsetting the impact of seasonally higher costs in Paper and Paperboard. An impressive turnaround in Paper, and the continuation of healthy profits in Paperboard and Forests – together accounting for 95% of profits – summed-up an overall strong year. Unlike last year, impairment losses were low (SEK122m for the full-year vs. SEK555m in 2015), resulting in Q4 net profit of SEK442m (vs. a loss of SEK438m in Q4 15 and a profit of SEK395m in Q3 16) and a full-year profit of SEK1.4bn (vs. SEK559m in 2015). Net debt reduced further Although material working capital investments (use of SEK360m vs. release of SEK443m in 2015) resulted in full-year reported OCFs correcting (22%) to SEK2bn, relatively conservative capex (down 10% to SEK785m) and SEK662m of (the Spanish paper mill) disposal proceeds helped reduce net debt to SEK3.9bn (down 19% vs. 2015 end). As a result, full-year dividend was increased (14%) to SEK12/share. Paperboard maintenance shutdowns are guided to have a SEK150m profitability impact in 2017 (vs. SEK100m in 2016).
Holmen’s Q3 16 results were in line with consensus and ahead of AV’s expectations. Sales came in at SEK3.8bn (-5.5% yoy; -3.2% qoq) with weak volumes across divisions – energy in particular (-49% yoy; -31% qoq). Although, in the case of paper, weaker volumes (-27% yoy; -24% qoq) were attributable to divestments and the fire accident at Hallsta. Adjusted EBIT was up (+7.8% yoy; +8% qoq) to SEK527m, with an improvement in paper earnings (similar to UPM and Stora) being a key driver, in addition to some normalisation in paperboard (after Q2 was marred by rebuilding costs) and a consistently strong performance in forests. Although, sequentially, there was some benefit of seasonally lower costs. Holmen also benefited from a higher change in value of biological assets (+13% yoy; +34% qoq) of SEK103m, helping partly to offset the impact of higher taxes. Quarterly net income was SEK395m (+4.8% yoy; +8.5% qoq). Even though the reported OCFs were weak (SEK553m; -15% yoy; -2.8% qoq) due to materially higher tax payments and some working capital investments, the group still managed to reduce net debt further (down 8.6% vs. end Q2) to SEK4.1bn.
Holmen good Q2 16 results, wherein, despite a top-line miss, profitability remained robust and was largely in line with consensus estimates. Given that Q1 was an exceptionally strong quarter, some moderation was anticipated in Q2. Sales came in at SEK3.9bn (-4.9% yoy; +2.8% qoq) with weak harvesting (-11%), energy (-30%) and timber (-10%) volumes exerting yoy pressure. The sequential improvement was single-handedly driven by healthy paper deliveries (+25%) as Hallsta returned to full capacity after the fire accident in November 2015, more than compensating for maintenance shutdown-induced lower board volumes (-6.2%). Despite the top-line vagaries, adjusted EBIT was up 12% yoy to €488m – with paper earnings reviving at full-throttle (profit of SEK78m vs. a loss of SEK15m in Q2 15). Although, there was a sequential correction (17%) attributable to a series of factors: 1/ paperboard impacted by SEK40m of rebuild costs (guided earlier by management); 2/ forest’s earnings (-15%; accounting for 43% of total profit) impacted by seasonally-higher costs and reversion of timber trading to normalised levels; 3/ forex headwinds of SEK30m; and 4/ seasonally-lower energy production (-31%). Net profit came in at SEK364m (+13%; +64% qoq) with the sequential operating weakness being more than compensated by the absence of any one-off charges (SEK232m) recognised in Q1 16. Despite improving working capital efficiencies (release of SEK91m vs. SEK28m in Q2 15 and use of SEK213m in Q1 16), reported OCFs were down 1.2% yoy to SEK569m as taxes paid increased by a whopping 85%. Even though Holmen received SEK484m of proceeds from the Madrid mill sale, payment for the 2015 dividends resulted in a largely unchanged net debt position compared to Q1. Management guides for a SEK40m maintenance shutdown impact at the Braviken paper mill in Q3. Unlike Q2, the (negative) exchange rate impact is guided to be negligible in the current quarter.
Holmen started 2016 on a promising note by reporting strong Q1 results. Despite sales correcting 7.8% yoy to SEK3.8bn – due to the impact of weaker paper volumes (-11%) being amplified by the fire at the Hallsta paper mill and lower harvesting volumes (-13%) – adjusted EBIT was up 47% yoy (and 59% qoq) to SEK585m. This was driven by a combination of: 1/ a turnaround in paper earnings – thanks to a better product mix and some pricing improvements; 2/ restoration of normalcy at the paperboard operations (after a maintenance shutdown in Q4 15); 3/ continuation of the healthy contribution from forests (further supported by higher than normal income from timber trading). Even though SEK232m of one-off charges resulted in net profit coming in at SEK222m (vs. SEK298m in Q1 15), this was much better compared with a net loss of SEK438m (primarily due to asset impairments) in Q4 15. Reversion of working capital benefits (use of SEK213m vs. release of SEK101m and SEK290m in Q1 15 and Q4 15, respectively) resulted in reported OCFs coming in at SEK542m vs. SEK522m in Q1 15 and SEK775m in Q4 15. Still Holmen managed to reduce its net debt to SEK4.5bn – a decade low (despite strategic capex peaking during 2010-12). Management guides SEK40m of negative profitability impact in paperboard due to the start-up costs associated with the rebuilt board machine at Workington.
Unlike UPM and Stora, Holmen’s Q4 and FY15 numbers failed to meet AV's (and consensus) expectations, although (resurfacing) material paper business weakness was the common thread tying these three European paper majors. *Q4 disruptions dilute 2015 top-line performance* Sales: Q4 – SEK3.7bn (-8% yoy; -8.5% qoq); 2015 – SEK16bn (flat; 2.5% behind AV estimates) Q4 sales were severely impacted by the paperboard maintenance shutdown (volumes down 4.9% yoy and 12% qoq) and loss of paper production (volumes down 1.6% yoy and 11% qoq) due to a fire at the Hallsta mill. Although for the full year, the strong paperboard contribution (sales up 7%) and materially higher energy volumes (+29%) helped offset weaker prices in paper, timber and energy. *A bigger profitability impact* Adjusted EBIT (excluding income from associates and JVs): Q4 – SEK369m (-20%; -25% qoq); 2015 – SEK1.7bn (-2.8%; 5.4% behind AV estimates) The paperboard maintenance shutdown had a SEK100m profitability impact in Q4. While this resulted in Q4 paperboard profitability correcting 34% yoy (and 47% qoq), overall group profits also came under pressure (despite cost rationalisation – especially in paperboard and forests) as paper and energy succumbed to difficult markets. Even forex tailwinds faded (gains of SEK50m in Q4 vs. SEK450m - o/w >50% were in paper – in 2015) during the course of the year. Attributable net profit: Q4 – a loss of SEK438m (vs. a loss of SEK4m in Q4 14 and a profit of SEK377m in Q3 15); 2015 – SEK559m (-38%; materially behind AV's estimates). Similar to Stora, Holmen too impaired its paper assets by c.SEK620m in Q4 on account of the continuous weakening in long-term paper market fundamentals. Additionally, >SEK300m of one-off charges were recognised in Q4 to create a provision for early termination of electricity contracts and the fire at Hallsta. These unanticipated charges took a toll on Holmen’s bottom-line – which had been resilient during 9m 15. *Surprising working capital release bolstered gearing position* Despite marginal weakness in operating profits, the company managed a working capital release of SEK443m in 2015 (SEK290m in Q4 alone) vs. use of SEK217m in 2014, resulting in reported OCFs increasing 16% to SEK2.5bn. Also with the unchanged 2015 capex, net debt declined to SEK4.8bn – the first time below SEK5bn since 2006. However, a (gradual) reversion of the working capital benefits should result in an increase in the net debt position. The full-year dividend was increased to SEK10.5/share (+5%; in line with AV estimates). Management guides for another SEK100m of maintenance/rebuild costs in H1 16 as the paperboard capacities are being ramped-up (especially at Workington mill by 20ktpa).
Even though Holmen reported ahead of consensus Q3 15 results, they were lacklustre when compared with the Q3 performance of Stora and UPM. Sales increased 1.9% yoy to SEK4bn, driven by a continuously strong performance in paperboard (deliveries +5.6%; +8.2% qoq), and much higher energy production (+65%) and healthy paper volumes (+4.4%). Although weakness in paper, timber and energy prices has persisted. On a sequential basis, seasonally lower harvesting volumes (-14%) and weak timber deliveries (-24%; although impacted by a renovation at the Iggesund Sawmill), along with a weak price environment, resulted in a 2.6% top-line correction. Adjusted EBIT came in at SEK489m (-5.6%; +12% qoq) as an unrelenting weakness in paper (partly also aggravated by maintenance shutdowns) and higher costs in timber, overshadowed the cost optimisation achieved in paperboard and forests (Skog). Additionally, lower gains from the change in value of forest assets (unlike the hefty gains reported by Stora and UPM) disappointed. Similar to the last few quarters, again a big contributor to the overall profitability was SEK150m (SEK400m ytd) of forex gains. Although sequentially fading forex gains were more than offset by seasonally lower personnel costs. Thankfully somewhat lower borrowing costs (driven by a low interest rate environment in Sweden) resulted in net profit coming in slightly better at SEK377m (-2.1%; +17% qoq). Cash flows were partly impacted by a slowing pace in working capital release (SEK24m vs. SEK105m in Q3 14 and SEK28m in Q2 15), thereby resulting in 12% lower reported OCFs of SEK654m (+13% qoq). Management guides for another SEK80m profitability impact due to paperboard maintenance shutdowns in Q4.
Unlike 2014 (witnessing a staggering profitability recovery), 2015 has so far been a lacklustre year for the paper sector. Holmen too has followed suit by reporting weak Q2 results – profitability in particular, which was behind consensus estimates. Even though Holmen posted double-digit operating profit growth (unlike UPM and Stora – where the reporting currency is euros), the key driver was more weakness in the Swedish Krona and not any material operating improvements. Sales came in at SEK4.1bn (+4.9% yoy; -0.4% qoq), largely driven by strong paperboard operations (+9%) and higher paper (+11%; due to a growing contribution of value-add paper) and timber (+6.1%; seasonally strong demand) deliveries; while lower third-party forest operations and continuously weak paper (particularly newsprint) and hydropower prices dampened some of the gains. Although adjusted EBIT was up 19% to SEK437m, it was attributable to SEK150m of forex benefits and somewhat lower paperboard costs. Even sequentially, 10% profitability growth comprised SEK40m of currency benefits and favourable comps (as Q1 was impacted by SEK130m of maintenance shutdown and paperboard and paper mill rebuilding costs). Further down, lower financing costs culminated in a net profit of SEK322m (+29%; +8.1% qoq). Profitability growth (even though forex-driven) along with marginal working capital efficiencies resulted in reported OCFs of SEK574 (+19%; +10% qoq).
Research Tree provides access to ongoing research coverage, media content and regulatory news on Holmen. We currently have 14 research reports from 1 professional analysts.
Sirius’ announcement this morning has confirmed it will split the financing of the shafts and the remainder of the project, with the $600m shaft component targeted before April. We outlined the rationale for this strategy in September and ran through some of the maths, but today’s release implies scope for less dilution than expected, if it can be executed.
Companies: Sirius Minerals
Following continued delays of a Brexit agreement, few sectors within the UK market have remained attractive to investors despite low valuations. One sector which has continued to outperform despite the political drama has been the UK video gaming sector (henceforth UK gaming), which we are fans of. We believe a combination of sector-leading growth, strong cash conversion and timely cyclical positioning support our positive view on the UK video gaming sector.
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Trinity recently released its Q3/19 operational update in which the Company continued to focus on maintaining base production, whilst increasing its low-cost, high margin production. Production averaged 2,816bopd in Q3/19, a 3% YoY increase (Q3/18 2,734bopd). Two of the four new onshore infill wells came onstream during the period, with a third well coming onstream post-period end, increasing base production to 3,017bopd during October, with an expected year-end exit production rate of c3,400bopd. Trinity continues to pioneer its SCADA (Supervisory Control and Data Acquisition) system to optimise producing wells, allowing the Company to increase production, reduce opex and add value. The focus for the remainder of 2019 will be on the completion of the H2/19 onshore drilling campaign; with the information learned to be used in preparation of further drilling during H1/20. With new wells coming onstream, and a low operating break-even we expect the Company's cash generation levels and balance sheet to further strengthen during Q4/19. We maintain our BUY recommendation but reduce our price target to 37p (from 40p) following the 2020 National Budget changes (see below) and the recent shift in the USD/GBP exchange rate.
Companies: Trinity Exploration & Production
Encouraging and detailed metallurgical testwork results were reported from their advanced 100% owned open pit Mina do Barroso spodumene hard rock lithium project in Portugal. This involved the development of a new flow sheet and testing of a variety of mineral types, including different weathered types of spodumene ore from the various drilled deposits that form the project.
Companies: SAV BHP GLEN ASO ALBA CAML GWMO
Shell is acquiring the French offshore wind developer Eolfi. The Anglo-Dutch oil major, which wants to be on the “right side of history”, is increasing its investments in renewables. Having such a committed player now in France is positive for the domestic supply chain. With the ambition of reducing its net carbon footprint by half by 2050, this acquisition is further evidence of the potential of offshore wind in light of the energy transition.
Companies: Royal Dutch Shell
Diversified Gas & Oil (DGO) is an Appalachian Basin focussed E&P Company, with a portfolio of long-life, low operational cost, low decline assets. By acquiring high quality assets, with synergies to the Company's existing portfolio, DGO can reduce operating costs and enhance margins, thereby creating significant shareholder value. DGO looks to acquire non-core producing assets from the shale focussed E&P's, before maximising and optimising production to extend well life. This long well life underpins the Company's well retirement programme, with DGO negotiating agreements covering more than 98% of its total oil and gas wells, providing clear visibility into the Company's future expenditure whilst also building trust with the state regulators. Following recent updates by the Company and the recent change in USD/GBP FX rate we lower our price target to 141p and maintain our BUY recommendation.
Companies: Diversified Gas & Oil
Last week, 88 Energy provided an update on the Charlie-1 appraisal well in which the Company announced the execution of a rig contract with Nordic Callista Services, for Rig-3, the same rig 88 Energy used to drill the Winx-1 exploration well in March 2019. Permitting is proceeding as planned, with drilling scheduled to commence in February 2020. The Charlie-1 appraisal well will be fully funded (up to a cap of US$23m) by Premier Oil as part of the recent farmout agreement, and will target seven stacked horizons with gross mean prospective resources of 1.6bn bbls (480mmbbls net to 88E). The farmout to Premier Oil is expected to complete by the end of November. We update our model and our target price to 4.8p and reiterate our BUY recommendation.
Companies: 88 Energy
Double whammy for Tullow Oil, which has revised its production forecasted for FY19 for the third time and reports that its latest discoveries in Guyana are heavy crudes with a high sulphur content. While it is too soon to declare both discoveries are not commercially viable, this is a big disappointment, which triggered a sell-off in the stock.
Companies: Tullow Oil
Premier has released a trading update, reporting production to the end of October of 79.4mboe/d, compared with our existing 75.7mboe/d full year forecast. The 75-80mboe/d guidance range remains, as do company expectations of coming in towards the top end of this, and we upgrade our forecasts below. FCF up until the end of October is reported at US$300m, compared with our existing US$301m full year forecast, and which also increases on our upgrade below. Unit OPEX is reported at US$18/boe, with full year guidance of US$19/boe now reduced to US$18/boe. This is a strong performance, based on high output from Catcher (69mboe/d gross on the back of almost 100% uptime) in particular, but steady output from the rest of the portfolio in the North Sea, Vietnam and Indonesia.
Companies: Premier Oil
Ceres has made a strategically important RNS this morning indicating it has launched its first hydrogen fuel cell system giving customers a zero carbon option system looking forward in addition to its low carbon natural gas systems - one of two areas we hoped it would develop into. Our note today explains the merits of having a fuell cell system designed specifically to work with clean hydrogen, flags next week's CMD at the new Redhill facility and Liberum's December's conference at Liberum and highlights the reasons why the hydrogen/FC sector has been booming.
Companies: Ceres Power
Gas has started producing from SDX’s South Disouq concession (55% WI, op) in Egypt. It has been flowing through the South Disouq Central Processing Facility (CPF) since 7th November 2019. Each of the four discovery wells have been hooked up to the CPF and tested since then and have produced at their expected rates of 8 mmcf/d to 15 mmcf/d. Over the last three days, the CPF has been operating in line with company expectations, achieving average gross production of 23 mmcf/d of gas (GMP FEe 4Q19: 25 mmcf/d) and 120 bbl/d of condensate (GMP FEe 4Q19: 150 bbl/d) or 24 mmcfe/d overall (GMP FEe 4Q19: 25.9 mmcfe/d).
Companies: Sdx Energy
We are increasing our target price on PetroTal from £0.45 per share to £0.50 per share following the strong result of the BN 95-4H well. In our view, the initial flow rate of 6.2 mbbl/d combined with lower than expected drilling costs demonstrates the potential of horizontal wells to develop the field with better economics, shorter pay back and potentially more reserves. With current production of already 7.8 mbbl/d constrained by surface facilities, PetroTal is well on track to deliver 10 mbbl/d by YE19. We are incorporating the additional capital recently sanctioned to drill more wells and enhance further surface production capacity and increase our YE20 production forecast from 14 mbbl/d to 18 mbbl/d. This new profile and capital programme look increasingly similar to the 3P reserves case, which recovers c. 80 mmbbl (twice the company’s 2P reserves). A increase of 2P reserves at YE19 looks increasingly possible in our view. We are now incorporating into our Core NAV a risked value for the company’s possible reserves (@60%), resulting in our Core NAV increasing from £0.23 per share to £0.54 per share. The shares trade at c. one third of our new Core NAV and at EV/DACF multiples of 1.0x for 2020 and 0.5x for 2021. PetroTal continues to be a deep value name also offering production, cashflow and reserves growth.
Vestas’ Q3 results beat expectations in all metrics. The order intake momentum remained extremely strong by growing 45% to 4.7GW, taking the order backlog to an all-time high, which, combined with a stable ASP, gives good visibility for both next year and 2021. Management confirmed its full-year targets. With this impressive execution, Vestas confirmed its leadership position amongst its peers. We confirm our positive opinion on the stock.
Companies: Vestas Wind Systems
3Q19 production in Turkey was 531 boe/d (GMP FEe: 764 boe/d). The company had net working capital of C$52.8 mm at the end of September (GMP FEe: C$49 mm). A conference call is taking place today at 16:00 UK time (https://event.on24.com/wcc/r/2110782/925DB523D4E9677CD92351CF7 EAF3C39).
Companies: Valeura Energy
This morning, Trinity released in H1/19 interim results, delivering another strong performance as the Company continues to increase base production whilst maintaining effective cost controls. Production averaged 3,008bopd for H1/19, up 9% year-on-year (YoY), generating revenues of US$32.2m on an average realised oil price of US$59.1/bbl. The Company's financial performance was impressive, with adjusted EBITDA increasing by 20% YoY to US$11.2m, facilitating a cash plus working surplus of US$22.0m at 30th June 2019. Post period, as part of Company's H2/19 drilling campaign, the Company has drilled three wells, including the Company's first High Angle Well (HAW), which successfully intersected net oil reservoir sandstone 1.5x the thickness of a conventional vertical well was prognosed to deliver on this target. The H2/19 programme will include up to eight new onshore infill wells, with drilling expected to increase base level production into 2020. We reiterate our BUY recommendation given today's strong financial and operational results.
Companies: Trinity Exploration & Production