HYGO Energy: High, Green, Growth!

The Golar-Stonepeak downstream pioneer HYGO has filed for IPO and we calculate that the value of Golar LNG’s stake in the JV could be worth more than its own market cap. We estimate a base case equity value of USD ~2.0bn and see further upside to ~5.3bn in terminal capacity, downstream opportunities and global projects. We raise our GLNG target price to USD 25 (22) owing to a higher value assessment of HYGO and look forward to seeing how high HYGO could go.

Strong operating figures; progressing on refi

Q2 EBITDA of USD 66.6m, 29% ahead of Consensus Earnings negatively affected by JV results TCE guidance indicating 20% downside to Cons. Q3 EBITDA Making firm progress on financing and liquidity

Strong operating figures – Progressing on refi

Q1 EBITDA 12% ahead of Consensus Firm progress on several refinancing efforts Q2 TCE guidance indicating 15% downside to Cons. EBITDA Liquidity preservation and business simplification are high priorities

Major milestone: COD reached at Sergipe

Sergipe Power Plant has reached COD (50% owned by Golar Power) Commencement of FSRU Nanook’s bareboat charter also triggered GLNG’s share of the assets’ EBITDA backlog is USD ~1.9bn GLNG trades at 70% discount and we see further upside in Power’s equity

Orderbooks are coming down rapidly

So far, IMO 2020 has played out largely as anticipated with tankers reaping the benefits of increased refinery demand and bulkers struggling with higher fuel costs (still early days). Looking ahead, we are particularly upbeat about the tanker and LPG markets, where we see healthy fundamentals on the back of encouraging demand trends and sliding orderbooks. Our list of top equity picks include GLNG, AMSC, OCY, DHT and LPG stocks.

GMP FirstEnergy ― UK Energy morning research package

President Energy (PPC LN) (not covered): Operating update in Argentina | NEOS Shale: Application refused for UK Shale exploration well | ENI (ENI IM) (not covered): Transactions in Egypt and UAE | ShaMaran Petroleum (SNM CN) (not covered): YE17 reserves and operating update in Kurdistan | Golar LNG (GLNG US) (not covered): First LNG production in Cameroon

Renold - Strong end to FY24: EPS up 11%. Robust FY25: EPS up 27.6%

The FY24 year-end update is very upbeat signalling trading being materially ahead of expectations, with a better-than-expected profit out turn and stronger cash generation. It continues to strengthen margins through efficiencies and investment in modern equipment. The order book remains close to record levels providing a robust view of future forecasts. In FY24E we upgrade EPS by 11% and in FY25E a significant upgrade of 27.6%. It looks capable of declaring a dividend in FY25 as well as manageme

Billington Holdings - Record result boosts dividend; forecasts upgraded

FY23 results show very strong growth over FY22, driven by strong Structural Steel activity, with results slightly ahead of upgraded profit expectations, while stronger than expected cash flow resulted in an unexpectedly generous dividend of 33p (offering a FY23 yield of 7.0%). The group now has net cash of £22.1m and is debt free and is therefore in a strong position for potential M&A activity. Following the recent £90m of new orders to increase the order book to record levels we conservatively

Morning Note – 16 April 2024

Morning Note – 15 April 2024

Warns on brine supply costs

PROGRESSIVE: Severfield: Targeted acquisition strategy aids growth path

Acquisitions have been an important element of Severfield management’s growth strategy, with the aim of adding new products, sectors and regions to what we have identified as exciting long-term organic opportunities. In this Spotlight report, we focus on the group’s targeted M&A approach, highlighting three significant deals.

SP Angel . Morning View . Copper prices hold higher as China processing fees fall below $0/t amid low feedstock availability

Invinity Energy Systems - Update on Strategic Investment

Invinity’s update on discussions with strategic investors reveals interest from multiple parties. While this has slightly delayed finalising an agreement it increases the potential for a better outcome. Although details are unknown at this stage, we think there is enough in the statement to be comfortable that any agreements will be consistent with the company’s strategy of growing market share in core markets and using a licencing and royalty model in other markets.

FY results: strong cash flow

Clean and competitive fertiliser

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Windar Photonics - Major order, successful net £4m fund-raise, target fair value price raised

WPHO's announcement last week of a major new contract award with a North American customer represented an encouraging step forward in building the group's presence in this crucial market for wind power; and has been followed by news of the over-subscribed fund-raise which has strengthened the company's balance sheet to the tune of £4m net (£4.4m gross). The company is a pioneer in the field of wind turbine optimisation and continues to grow through innovation based on its unique IP. Following th

LIBERUM: Gattaca: Resilient contract performance, perm tough

Norcros - FY24 trading in line with expectations

FY24 trading underpins Norcros’s compelling investment case, where its new product development initiatives, market positioning and self-help initiatives allow it to take market share in both the UK and South Africa. We believe that Norcros’s key strengths are underappreciated and that legacy issues have been resolved. Its rating is low at 5.6x FY24e P/E, which is attractive, especially when compared to its yield of 5.7% on its well-covered dividend. We retain our estimates and value the shares a

Trading report in-line with sector peers

The results for the six-months to January are robust against a backdrop of declining confidence in both clients and candidates generally. With an improvement in the contract book during early Q3 we think this highlights that the tide is starting to turn and likely to feed through to demand for permanent hires ahead of the CY24 end. With net cash accounting for over 70% of the current market capitalisation, the operating business appears undervalued. H1 results were broadly in line with expectat