Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on LAMPRELL PLC. We currently have 4 research reports from 1 professional analysts.
|23Jan17 07:00||RNS||Pre-Close Trading Update|
|20Dec16 16:35||RNS||Price Monitoring Extension|
|25Nov16 07:00||RNS||Contract award|
|04Nov16 07:00||RNS||Delivery of jackup rig|
|26Oct16 07:00||RNS||Holding(s) in Company|
|25Oct16 07:00||RNS||Holding(s) in Company|
|11Oct16 07:02||RNS||Director/PDMR Shareholding|
Frequency of research reports
Research reports on
H1 2016 results follow up
28 Sep 16
Lamprell released its H1 2016 results last week. These reported revenue of US$451m (versus US$351m in H1 2015), operating profit of US$1.4m (versus US$26.9m in H1 2015) and EPS loss of 1.3c (versus 5.9c profit in H1 2015). The overriding factor in these results was the hit taken from the deal made with Ensco due to the late delivery of the Ensco 140 rig, which caused a US$25m reduction in revenues and a further US$10m increase in costs (Lamprell is in the process of trying to recover this from OEM Cameron). The Ensco issue was well flagged so was no huge surprise. Revenues are well over half our full year number, but this is more down to project timing than anything else (we are easing back our full year revenue forecast – see below).
Ensco 140 rig delivered and settlement reached
30 Aug 16
Long-term Lamprell is well placed to win contracts from high quality clients when these start to come through again; there is the potential for further efficiency gains to help with margins; it has a strong net cash position to help see it through; and an undemanding EV/EBITDA valuation. Over 2016 however we expect decline in revenues and profitability; uncertainty on how Lamprell will fill the order book (for 2017 in particular – recent news indicates that the environment has not improved); and there is likely to be a time lag before the company’s new strategic alliances start to bear fruit. For investors keen to secure an entry into the stock and willing to take some pain short term, the shares may be attractive. Our view is that news will continue to be negative over the course of 2016 as order book progress continues to be challenging, and, we believe, revenue guidance comes under pressure (which could happen at the upcoming interims). As such, we believe that the price will struggle (absent significant further oil price recovery) and we have a Reduce recommendation.
2015 results follow up
29 Mar 16
We have now updated our forecasts for Lamprell. We have put through a greater hit to revenues than guidance, reducing these by 11.7% in 2016 versus 2015, compared with guidance of a 5.0% decline. Walk-in work slowed significantly in the second half of 2015 and we are allowing for further weakening during 2016. We have also reduced operating margins base on broadly flat fixed costs 2016 versus 2015 and a small increase in variable costs (with the pricing pressure effect on margins counteracted by cost savings as a result of the company’s Project Evolution Phase 2 efficiency drive and its new ERP system). It’s worth being aware in this context that the US$77.7m of 2015 operating profit contained US$7.5m of reversed warranty provisions and US$6.1m of reversed bad debt provisions – neither of which may be repeated going forward. Overall, our 2016 operating profit falls from US$62.1m to US$60.1m. We have also beefed up finance charges as these were ahead of our assumption in 2015. Overall, our EPS falls from 18.0c/share to 13.9c/share.
2015 Results Preview
06 Mar 15
Lamprell is due to release its 2014 results on Thursday 19 March. The company gave guidance on 2014 and 2015 numbers at the January trading statement and so we are not expecting any huge surprises either in the results or in any new forward guidance (though knowing Lamprell there could potentially be some more benefit on margins over and above our assumptions industry headwinds not withstanding). More important for us is order book outlook for the rest of this year and into next, any update on margins versus our forecasts, how the company expects to fully secure 2015 revenue expectations and any further guidance around when dividends might potentially resume.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
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