Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on INDUS GAS LTD. We currently have 7 research reports from 1 professional analysts.
|29Dec16 07:00||RNS||Half-year Report|
|06Dec16 16:35||RNS||Price Monitoring Extension|
|15Nov16 12:29||RNS||Change of Registered Office|
|31Oct16 16:40||RNS||Second Price Monitoring Extn|
|31Oct16 16:35||RNS||Price Monitoring Extension|
|28Oct16 13:30||RNS||Result of AGM|
|12Oct16 16:35||RNS||Price Monitoring Extension|
Frequency of research reports
Research reports on
INDUS GAS LTD
INDUS GAS LTD
FY 2016 Results
27 Sep 16
Indus has released its FY 2016 results, disclosing that the long awaited development plan for the entire block (outside the already producing SGL area) was submitted in February. Government approval is pending, but once this is received Indus can proceed with the first phase of development outside the SGL area, targeting an additional 200mmcf/d during 2019. Offtake is to be via a pipeline planned to connect up to the national gas pipeline network, and discussions for this are progressing with third parties. Further development on SGL is also planned, with supply of a further 27mmcf/d to GAIL now expected in January 2018. This progression of development across the block is all encouraging. The FY 2016 results themselves show strong OCF of US$57.2m, though fall short of our revenue and profit estimates on lower gas sales and pricing than we had forecast. We have adjusted our forecasts for lower revenues but also lower depreciation and interest, driving increased P&L profits overall. Going forward we look for further updates on progression of development on both the SGL area, and also the wider block development and pipeline project, to continue supporting the strong share price performance seen already this year.
H1 FY 2016 Results
21 Dec 15
Indus has released its H1 results showing operating cash generation of US$27.2m in the half from SGL revenues and positive working capital, helping fund CAPEX on the rest of the company’s RJ-ON/6 block. Reported revenues leave ground to make up in the second half due to maintenance shut-downs at the offtaker power plant and an agreement on higher gas pricing yet to be reached. We have left our full year revenue forecast unchanged optimistic that this will be made up. Our earnings forecasts reduce for greater administrative costs and lower capitalised interest than we had expected. Indus continues with its development work drilling six appraisal wells and continuing long-distance pipeline negotiations. This is all aimed at submission of a full field development plan in Q1 2016 at which time we hope for greater clarity around Indus’s long-term plans for the 6.1tcf of gross raw gas resources its RJ-ON/6 licence is estimated to hold. We would expect this to be a key event for the stock.
Full Yr To 31 Mar Results
22 Sep 15
Indus has released its FY 2015 results showing growth in revenue and profits versus the previous year. Revenues were behind our forecasts due to the level of power plant usage from customer GAIL though PAT is in line on lower-than-expected interest. Based on this we have trimmed FY 2016 revenues though PAT remains largely unchanged. Indus has drilled 15 development and appraisal wells since April 2014 supporting the potential for increased gas sales and long term development plans for the block. A full field development plan is expected to be submitted by February 2016 and plans to connect to India’s emerging national gas grid via long-distance pipeline have also progressed. SGL already provides cash flows to support further development and the main route to value for the company is progression of development of the rest of the block. We expect another update at the H1 results before the end of the year and subsequently the development plan submission – both of which could provide catalysts for the stock.
US$74m Bond Issue in Singapore
21 Apr 15
Indus has announced that it has issued SG$100m (US$74m) worth of three year notes in Singapore. These will pay a fixed semi annual coupon of 8% and settlement is expected around 23 April. As part of the process Indus has registered with the Singapore stock exchange to issue up to US$300m of bonds in total in multiple tranches allowing the company to return to the market relatively quickly to carry out further issues if desired. The statement discloses that Indus may utilise this in the coming years (subject to availability and terms) during which time we expect it to be continuing with development of its RJ-ON/6 block in Rajasthan.
08 Dec 14
Indus has released a new CPR update from Senergy on its RJ-ON/6 block in Rajasthan. Key here is the increase in gross 2P reserves from 573bcf to 872bcf of raw gas based on further work at the producing SGL field and addition of reserves elsewhere including the new SSM discovery. 2C resources are up from gross 2.7tcf to 3.3tcf based on drilling of further wells since the last report. There is also some welcome detail on further development phases focusing both on increased local sales but also, crucially, plans for subsequent development to include a long distance pipeline connection to India’s emerging national gas grid. This would help secure not only gas sales for current reserves but potentially open up a line that could hasten far more widespread commercialisation of contingent and prospective resources on Indus’s block by allowing the company to access a deep pool of gas demand in a country where supplies are very limited. Further detail around longer-term development should be available in due course but a long distance pipeline grid connection is a very important building block for this helping underpin the long-term value of the asset and the resources that it contains.
H1 Results and Declaration of Commerciality Approval
25 Nov 14
Indus has released its H1 FY 2015 results and also announced formal approval of its declaration of commerciality for an additional 2,000 sq. km development area on its RJ-ON/6 block. The H1 results show sales behind our expectations due to some intermittent outages at the power plant Indus supplies to. These have caused a reduction in our FY 2015 forecasts though FY 2016 remains constant. This should not detract from the declaration of commerciality approval which is an important step in hugely increasing the area of the block that Indus will be able to secure for the long-term. We look for this to be followed by a full development plan next year and subsequently a formal development licence. We also expect upcoming news from a new CPR. The declaration of commerciality approval helps underpin our valuation which is 1,504p risked going to 2,384p unrisked.
20 Feb 17
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The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Playing the long term, with short-term risks
16 Feb 17
After the publication of the annual results, we update our view and highlight the key points. Q4 16 key highlights As a reminder, the company reported results 30% below expectations at $400m for Q4 16. By division: 1) In upstream, underlying replacement costs profit came to $400m, vs. a loss a year earlier of $728m and a loss of $224m in Q3 16, reflecting the ongoing lower costs which have benefited from simplifications, efficiencies and lower exploration write-offs. In the US, the loss is still $147m. Production came in at 2.19mbpd, down 5.5% yoy due to disposals and up 1.8% on an underlying basis thanks to ramp-ups. One of the key events during the quarter was the renewal of BP’s onshore concession in the UAE with a 10% interest in the ADCO onshore oil concession. In terms of outlook, production should be higher in 2017 and will depend on the timing of project start-ups, acquisitions, divestments, and OPEC quota. Also the Abu Dhabi concession will be visible as from Q1 17. 2) In downstream, replacement costs profit came to $877m, down from $1.2bn a year ago and $1.4bn in Q3 16. The US division showed a loss of $371m vs a gain of $1.25bn. Non-US Fuel business earnings halved to $417m due to the weaker refining environment as well as the impact from the particularly large turnaround at the Whiting refinery. In lubricants, profit rose to $357m, reflecting the continued strong performance in its growth markets and premium brands as well as simplifications and greater efficiencies. The margin should remain unchanged for Q1 17. 3) Rosneft. Underlying replacement costs profit came to $135m, down from $235m a year ago, affected by the increased government take. Production was at 1.15mbpd, up from 1.03mbpd a year ago. This reflects the completion of the acquisition of Bashneft and Rosneft’s increased stake in the PetroMonagas venture. BP received a dividend of $322m after deduction of the withholding tax, in July 2016. On the Macondo oil spill, the charge taken for the Q4 16 pre-tax was $530m. This reflects BP’s latest estimates for claims including business economic loss. The pre-tax cash outflow on costs related to the oil spill for the full year 2016 was $7.1bn. Cash flow Excluding the Gulf of Mexico payment, the operating cash flow was $4.5bn. Underlying operating cash flow excluding the oil spill-related payment was $17.8bn for the full year. Proceeds during the year and the scrip dividend were not enough to cover capex and the cash dividend. Gearing at the end of the year increased to 27% ($35.5bn debt), in the high range of the group’s target of 20-30%. Organic capital was $16bn, below original guidance of $17bn to $19bn. Capex in 2017 should be close to $16-17bn. Divestment proceeds should be higher in 2017, close to $5bn and then reducing by $2-3bn per year after 2018. The total costs of the Deepwater payment should fall to $2bn in 2018 and then $1bn per year as from 2019. In 2017, this should be close to $5bn. All in all, including the latest acquisitions, cash flow break-even should be close to $60/bbl in 2017.
Small Cap Breakfast
16 Feb 17
Saffron Energy—Schedule One update. Raising £2.5m, expected Mkt Cap £7.7m. Admission due 24 Feb. Italian Oil & Gas Play Guinness Oil & Gas Exploration—Publication of prospectus. Seeking to raise £50m and invest in 15 exploration companies at launch, with plans to grow the portfolio to 30 positions during its lifetime. Issue closing 23 Feb. Arix Bioscience — Intention to float on the main market from the global healthcare and life science Company supporting medical innovation. Raised £52m in Feb 16 with investors including Woodford Investment Management
GMP FirstEnergy ― UK Energy morning research package
17 Feb 17
Enquest (ENQ LN): Speculative Buy, £0.65: Kraken FPSO in the field and hooked up in the North Sea | Ithaca Energy (IAE LN/CN)6: BUY, £1.40: Stella First Hydrocarbons in the North Sea | Bowleven (BLVN LN) (not covered): Denies claims made by Crown Ocean Capital