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Revenues at USD 81m vs. Arctic and Nordic consensus at USD 90-95m Quality of revenues solid with late sales at USD 61m – up 10% vs. Q2 2020 Negative revenue revisions about to through – down 50% since February Downside protection with sustainable div.yield at 4.5% and P/B at 1.0x
Companies: TGS ASA
Arctic Securities
The current pessimistic sentiment towards oil and gas reflects a similar degree of optimism regarding renewable energy. While the transition clearly has begun, fossil fuels still deliver 85% of the world’s energy supply. The transition to a green energy base will take decades and we feel investors underestimate the complexity. With more realistic consensus estimates, and a sustainable dividend yield of 4-5% we upgrade the stock to Buy (Sell) – target NOK 125 (120)
We reiterate Sell with a new target of NOK 120 (130). Revenue revision has been negative post Q2 and we believe this trend will continue. While we expect 2H 2020 revenues of USD 196m, consensus is at USD 241m. Furthermore, 2021 estimates appear high as we do not believe TGS will be able to replace the 2020 backlog, which we believe will become evident over the next months. On 2020/21 numbers, we find no valuation support on FCF, P/E or EV/EBIT
Revenues of USD 96m in line with pre-announced numbers EBIT of USD –84m (USD –36m excl impairment) – Arctic at USD -26m Backlog USD 98m vs. USD 160m end Q1 – supports a weak market Share to trade largely in line with other energy stocks
Q2 revenues USD 96m vs. Bloomberg consensus at USD 98m Pre-funding revenues “saves” Q2 with USD 38m (40% of revenues) Pre-funding revenues to dive in 2H owing to much lower investments Late sales USD 54m vs. Arctic at USD 50m – down almost 70% from Q219
We change our recommendation to Sell (Buy) following a +50% share price gain. We fear that the market perception among investors over the next six months will become weaker triggered by quarterly revenues significantly below consensus. We acknowledge that TGS is a survivor and that some may look beyond ~18 months with terrible earnings, but investors should be able to buy this quality name at lower levels. Our 2020/21 revenue estimates are down ~16%
Pre-funding and late sales revenues in line with pre-announced figures EBITDA inline, EBIT of USD -19m (CS USD 13m) and net profit at USD -27m FCF negative USD 21m or NOK 2 per share (neg NOK 7/share ink divi) Highlights very challenging market conditions – estimates at risk
TGS is one of very few oil service companies that we believe will deliver a solid FCF yield in 2020, which clearly supports the new dividend level. Although our 2020 revenue estimate is 38% below the 2019 level, TGS will manage to deliver a FCF yield of almost 7%. In 2022 the FCF yield is forecasted at +10% even with a revenue estimate 22% below 2019 levels. We reiterate Buy with a target of NOK 180 (190). The stock trades 50% below historical average on P/B.
Q1 revenues of USD 152m vs. consensus at USD 162m Quality of earnings weak with late sales at USD 65m – down 48% YOY 2020 mc spending guidance USD 325 (previous USD 450m, Arctic 350m) Q1 dividend USD 0.125 vs. previous guidance 0.375
Q1 revenue update Wednesday morning – Arctic in line with consensus We expect dividend reduction – USD 0.2/quarter vs. guidance at 0.375 New mc 2020 guidance expected at USD 350m (current USD 450m) Bearish market comments expected – TGS in a unique position, though
TGS is in a unique position vs the majority of other oil service companies. Firstly, the company has a net cash position above USD 300m and secondly TGS has a flexible business model which can be trimmed immediately towards a brutally low activity level and still deliver positive FCF. As such, TGS is a survivor. We cut our estimates considerably and lower our target price to NOK 190. We reiterate Buy supported by an all-time low P/B and strong FCF support.
Edison Investment Research is terminating coverage on Tiger Resources (TGS). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.
Edison
On 10 January, Tiger announced that it had achieved production for FY16 of 23,119t of copper cathode. While this was within updated guidance of 23.0-23.6kt, it was below earlier guidance of 25.0-26.5kt after a number of setbacks curtailed output. While 2016 therefore witnessed management fighting a series of metaphorical fires, an elegant solution to the central metallurgical problems, utilising the newly established tank leach capacity from the earlier de-bottlenecking exercise, has stabilised
Centamin | Minera IRL | Nyrstar | Vast Resources | Tiger Resources
Companies: 0RH8 TGS VAST MIRL CEY
SP Angel
Research Tree provides access to ongoing research coverage, media content and regulatory news on TGS ASA. We currently have 0 research reports from 4 professional analysts.
Eleco’s FY23 results show robust organic recurring revenue growth of +17% with recurring revenue +22% to £20.7m, adj EBITDA +2% ahead of the January update, and a confident outlook with Q1 ARR already at £24.5m vs £22.6m at FY23. At this point, the excellent start to FY24 leads us to reiterate our FY24-26E revenue, adj EBITDA, EFCF, and DPS, and we include the April 2024 acquisition of Vertical Digital in our FY24-26E net cash, as we explain below. As Eleco builds upon the successful acquisition
Companies: Eleco Plc
Cavendish
Made Tech has won a material expansion (worth up to £19.5m/2yrs) with a long-standing customer, The Department for Levelling Up, Housing and Communities (“DLUHC”). Coming off the back of a soft H1 bookings performance, we expect this win to materially boost investor sentiment and reassure how notwithstanding a tough backdrop (given an impending general election) MTEC continues to outcompete legacy providers and in-so-doing, grow its share of wallet with large/strategic customers. Landing near FY
Companies: Made Tech Group PLC
Singer Capital Markets
Companies: Cerillion Plc
Liberum
Cerillion has announced a very solid update, as H1 sales and EBITDA are both up 10% y/y to £22.5m and £10.9m respectively, notwithstanding the exceptionally strong base period (sales and EBITDA +27% and +38% resp.). Results therefore point to continued strong customer demand, reflecting how Cerillion’s out-of-the-box product continues to resonate and gain adoption, particularly in a ‘budget conscious’ environment, by offering faster time to market, greater configurability and at a lower cost. Me
As reported in March, underlying EBITDA profitability improved to record levels despite FX headwinds. Further platform and proposition developments were completed, key steps on its digital roadmap, and it has already won 7 contracts YTD. Alongside planned growth in private membership, this will at least offset the loss of one contract. Forecasts are left unchanged today and, as member engagement throttles back up, FX headwinds ease, and proof points of digital efficiency emerge, markets should b
Companies: Ten Lifestyle Group PLC
itim is a disruptive SaaS-based platform that enables store-based retailers to implement a proven Omni-channel solution. This morning, the group has announced an additional professional services contract with its long-standing client, The Entertainer. Following a year-long trial, The Entertainer is opening in over 800 Tesco stores across the UK & Ireland, alongside a supplier agreement for Tesco stores across Central Europe. Under the contract, The Entertainer will extend its use of itim's Unify
Companies: Itim Group PLC
WHIreland
GE Healthcare has announced the launch of the Voluson Signature 20 and 18 ultrasound systems, with the related press release noting these systems ‘comprehensively integrate artificial intelligence’ to improve the ultrasound procedure for clinicians and the women being scanned. These ultrasound systems include SonoLyst, the AI which incorporates Intelligent Ultrasound’s ScanNav Assist and ScanNav AutoCapture AI software. The launch of additional Voluson systems including the SonoLyst suite of AI
Companies: Intelligent Ultrasound Group Plc
22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi
Companies: ARV CTL AFRN FEN HUW TENG BBSN EAAS VAL
Hybridan
Alphawave Semi has reduced guidance for FY23 and prospectively citing lower revenues from China, changes in expected revenue recognition from long-term contracts, and continuing investment in R&D. The share price has reacted negatively, giving up most of the gains since the trading statement at the end of January. Current consensus, which is a good match for pre-existing guidance, should be reduced, most likely following release of the FY23 results and full 1Q24 trading update due on 23 April. H
Companies: Alphawave IP Group PLC
Capital Access Group
Companies: FOG PEB KBT EMR TIME GETB JNEO
Devolver Digital encouragingly delivered 2023 results slightly ahead of expectations and provided a steady medium-term outlook that leads us to reiterate our 2024 Adjusted EBITDA estimates. Longer term, the company is now planning to further develop its two major planned titles, Human Fall Flat 2 and System Era's next major new release. We now expect those major titles to be released in 2026 rather than 2025, meaning we lower our 2025 Adjusted EBITDA forecast to $10.6m from $17.6m but introduce
Companies: Devolver Digital, Inc.
Zeus Capital
This report is intended to help UK small- and mid-cap investors gain a better understanding of software companies’ routes to market, and to highlight how one of the most important facets of the way in which they grow and deliver value is routinely ignored. We examine sales processes for six UK-listed companies and one that has recently been taken over, and consider why they have followed their respective paths.
Companies: Idox plc
Progressive Equity Research
Banquet Buffet*** Abingdon Health 9.25p £11.3m (ABDX.L) The lateral flow contract development and manufacturing organisation announces its unaudited interim results for the six months ended 31 December 2023. Revenue increased 117% to £2.4m (H1 2023: £1.1m). The Adjusted EBITDA loss decreased 47% to £1.2m (H1 2023: £2.2m). Furthermore, reduction in operating loss of 50% to £1.2m (H1 2023: £2.4m). The Board therefore expects that H2 2024 revenue will be significantly improved compared with H1 2024
Companies: CPX SLP FA/ FIPP ECR ETP ORCA
Companies: IGP RUA BOOM
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