Equity Research, Broker Reports, and media content on Capital Drilling

  • Access the latest forecasts, broker valuations, multiples, and video content from the city about Capital Drilling
  • See live updates from analysts, company announcements, and other news in a personalised/single dashboard
Login
  • 22 Aug 19

H1 Results: Another Strong Performance

Net Income after tax of US$5.1 million was 39% higher than our forecast of US$3.7 million, primarily due to a lower than expected depreciation charge for the half year and lower financing charges. EBITDA for the half year of US$12.6 million was 5% below our forecast of US$13.2 million. Capital’s EBITDA margin of 23% is in line with both Tamesis estimates and H1/2018 despite the additional overheads in establishing the West African business. Cash from operations of US$10.5 million was 22% lower than our expected US$13.3 million – attributable to a larger than expected change in working capital.

Companies: Capital Drilling
  • 17 Jul 19

Flash Update: Q2 and H1 Trading Update

Capital reiterated it is on track to achieve full year revenue guidance of US$110-120 million, and whilst the headline revenue number for the half year is slightly below our expectations, we are confident that the company will be able to achieve guidance. The newly announced contract wins (described below), and some H1 seasonal effects in West Africa, imply a stronger H2 for the company. We are assuming an EBITDA margin of 24.2% for the half year, implying H1/2019 EBITDA of US$13.2 million, or 3.0x current EV on an annualised basis. We estimate US$5.5 million of free cash flow generated for the half year, equivalent to a 12.1% yield, which well covered the US$2.0 million dividend payment in May.

Companies: Capital Drilling
  • 18 Apr 19

Flash Update: Q1 Trading Update Release

Capital reported it is on track to achieve full year revenue guidance and we are confident that the company will be able to deliver the US$29.3 million quarterly average revenue for the remainder of 2019 to hit the mid-point of guidance (US$110-120 million). The quarterly result is slightly below our forecast at the revenue level due to seasonal effects in Q1. Encouragingly, the company reported increased profitability from key contracts over the period – reinforcing our investment thesis from the FY/2018 results that Capital continues to outperform at blue-chip contracts with top tier mining companies including Kinross, Anglogold Ashanti, Resolute, Acacia, and Centamin. The West African hub continues to grow, highlighted by an exploration contract win with Golden Rim Resources (ASX: GMR) in Burkina Faso. The company is seeing robust tendering activity – any further contract wins will be incremental to the published guidance. Metals prices remain strong, and Capital is best placed to take advantage of any increased exploration spending by the majors and mid-tiers to replace depleting ounces or tonnes. We value Capital Drilling at 91p/share, representing 5x forecast 2019 EV/EBITDA of US$29.3 million and a 1.8x multiple on the current share price. Our forecast 2019 free cash flow is US$13.9 million, implying a 15.7% yield which easily covers the current dividend yield of 3.2%. At the current share price, Capital feels materially undervalued – trading at 2.7x 2019 EV/EBITDA, a strong balance sheet, covered dividend and further growth opportunities in the pipeline.

Companies: Capital Drilling
  • 27 Mar 19

Capital Drilling - Video Update

capital-drilling-video-update-27-03-2019
  • 14 Mar 19

FY Results – Profitability driving cashflow

Capital Drilling (LSE: CAPD) this morning provided its FY 2018 annual financial results, having already provided a trading update on 17 January 2019 announcing revenue and utilisation figures.

Companies: Capital Drilling
  • 17 Jan 19

Flash Update: Cash Generation is King

Capital Drilling (LSE: CAPD) this morning announced its Q4/2018 trading update. Revenue for the quarter of US$30.5 million led to full year revenues of US$116.0 million, above the top end of 2018 revenue guidance of US$105 to US$115 million and Tamesis estimates of US$110.2 million. ARPOR decreased to US$181,000 for Q4/2018 from US$198,000 in Q3/2018, primarily reflecting new contract commencements utilising the exploration fleet, however this decrease was offset by increased utilisation, rising to 59% in Q4/2018 from 53% in Q3/2018.

Companies: Capital Drilling
  • 25 Oct 18

New contract wins

The Company has announced two contract awards with Centamin and Sama Resources, which are both highly significant for different reasons. The contract extension with Centamin underwrites continuity of a substantial proportion of group revenues over a 5-year period, while the new contract with Sama is the first in the Cote d’Ivoire and highlights the potential of West Africa, since the Company strategically repositioned one-third of its rigs in this growth region. While we retain existing forecasts, these contracts greatly improve revenue visibility and therefore should increase investor confidence. Further contract awards would have a significant drop through to profits and offer potential forecast upside. The shares offer good upside to our 85p price target. These contract awards should be taken well.

Companies: Capital Drilling
  • 25 Oct 18

Morning Note – 25 October 2018

Alumasc (ALU): Corp AGM update – trading in line | ANGLE (AGL): Corp Update on ANG-002 FDA study | Capital Drilling (CAPD): Corp New contract wins

Companies: ALU CAPD AGL

  • 25 Oct 18

Flash Update: Sukari Contract Extension

Capital Drilling (LSE: CAPD) this morning announced that its drilling contract at the Sukari mine operated by Centamin (LSE: CEY) has been extended for five years through to 2023. The company provides blast hole and grade control drilling in the open pit operations and has worked on site since 2005. Flash Update: Sukari Contract Extension

Companies: Capital Drilling
  • 24 Oct 18

Small Cap Feast

Renalytix AI—developer of artificial intelligence ("AI") decision support and clinical management tools for improving early diagnosis, continual monitoring and drug development for kidney disease. incorporated in March 2018 as a subsidiary of EKF Diagnostics Holdings (AIM-EKF). total fundraising in the range £21 - 25 m. Mkt cap - c. £67.5- £71.0m. Due 2 Nov. Kropz PLC—an emerging plant nutrient producer with an advanced stage phosphate mining project in South Africa, a phosphate project in the Republic of Congo and exploration assets in Ghana. Looking to join AIM, offer TBC, market cap TBC. Due Late October. Azalea Energy—oil and gas production and development company based in Louisiana, United States. Net production of 13 MMcfe/D (2,200 boepd) and total 1P proved reserves of 91 Bcfe (15.1 mmboe), 2P reserves of 111 Bcfe (18.5 mmboe) raising up to $38m, expected mkt cap over $100m. Due 29 Oct Path Investments— First acquisition of a 50 per cent. participating interest in the producing Alfeld-Elze II gas field located 22 kilometres south of Hannover in Germany. Seeking £10m raise. Due late Oct Crossword Cybersecurity PLC* (NEX:CCS)—the technology commercialisation company focusing exclusively on the cyber security sector is exploring its options in relation to a potential move to the AIM market of the London Stock Exchange which, if it were to proceed, would likely take place over the next few months.

Companies: PVG PHTM CAPD ANG SCHO SCLP ENET ERIS AUTG TLY

  • 11 Oct 18

Q3 update – on track

The group has announced a strong Q3 and YTD revenue, suggesting that the company is on track to achieve its guidance range of $105-115m. We maintain our existing forecasts based on revenues of $111.1m. West Africa now accounts for 1/3 of the fleet, with new contracts starting to kick in and utilisation for the group rising. There is plenty of scope to increase utilisation from further contract wins, with a significant profit drop through from additional contract revenues. The shares remain attractively rated and we view today’s announcement as being encouraging for the shares.

Companies: Capital Drilling
  • 11 Oct 18

Morning Note – 11 October 2018

Capital Drilling (CAPD): Corp Q3 update – on track | Chariot Oil & Gas (CHAR): Corp Live to fight another day | discoverIE (DSCV): Corp Increasing organic sales growth and rising margins

Companies: DSCV CAPD CHAR

  • 16 Aug 18

Interims point to stronger 2H as utilisation rises

Interim results were in line with expectations and on track to achieve FY forecasts, which were raised in June. Q1 was the low point in revenue and rig utilisation. Once the relocation of rigs is complete in Q3, there will be 32 rigs in West Africa, where exploration is growing and active. Utilisation should progressively increase on known new contracts starting in Q3 as well as the expectation of further contract wins. Tanzania will remain a drag on sentiment until resolved. The shares look good value, and our 85p price target is based on an EV/EBITDA of 5.3x for 2019, compared to the current level of 2.7x.

Companies: Capital Drilling
  • 16 Aug 18

H1 Results – firmly established in West Africa

EBITDA for the period of US$12.5 million was in line with our forecasts, and 8% higher than H1 2017. Net income of US$2.8 million came in slightly lower than our expectation due to higher than modelled depreciation charges, however still represented outperformance compared to both H1 and H2 2017, reflecting the recent operational improvements in the business. The company’s expansion into West Africa has resulted in a one-off working capital outflow however operating cash generation of US$12.9 million, prior to this working capital movement, was in line with our estimate of US$12.8 million.

Companies: Capital Drilling
  • 10 Jul 18

Flash Update: Strong H1 Trading Update

Capital Drilling (LSE: CAPD) this morning announced its H1/2018 trading update. As expected, key metrics were strong as a result of increased utilisation of exploration rigs following the contract wins previously announced on 18 June 2018. Revenue for the period of US$54.5 million suggests that the company is on track to achieving upgraded 2018 guidance, increased to US$105-115 million, from US$100-110 million, on 18 June 2018.

Companies: Capital Drilling

Research, Charts & Company Announcements

Research Tree provides access to ongoing research coverage, media content and regulatory news on Capital Drilling. We currently have 62 research reports from 4 professional analysts.

Open
55.5p
Range Today
55.5/58.8p
52 Week
35.5/58.8p
Daily Volume
91.1k
# Shares
136.3m
Daily Liquidity
(0.07%)
Pension Liability
£0m
Enterprise Value
£54.2m
Market Cap
£77.7m
Latest PE (hist)
8.43
Div Yield
3.90

Latest News/RNS

(more news)
Date Source Announcement
22Aug19 07:00 RNS Half Year Results
17Jul19 07:00 RNS H1 Trading Update
30Apr19 14:05 RNS Holding(s) in Company
26Apr19 10:47 RNS Results of Annual General Meeting
18Apr19 07:00 RNS Q1 Trading Update
11Apr19 10:24 RNS REPLACEMENT - NOTIFICATION OF MAJOR HOLDINGS
11Apr19 08:58 RNS Notification of Major Holdings
Get free RNS email alerts

  • Frequency of research reports

     

  • Research reports on

    Capital Drilling

  • Providers covering

    Capital Drilling

  • 15 Aug 19

Tencent drops after weak guidance, SoftBank makes energy investment, Security software leaks 1m fingerprints

Tencent shares slumped as much as 3.88% on Thursday after the Chinese technology giant missed analyst expectations, despite beating forecast on earnings. Revenue rose 21% year-on-year to 88.82 billion yuan. Profit attributable to shareholders beat analyst forecasts, rising 35% year-on-year to 24.14 billion yuan. The company's gaming division returned to growth, posting revenue of 27.3 billion yuan, up 8% year-on-year, with mobile games performing particularly well.

Companies: KAPE AVST BIDS CDM CNS DFX ECSC FLX FDEV GFIN IGP KWS NCC OSI SOPH SUMO TM17

  • 15 Aug 19

On a clear flightpath

Avation is a lessor of commercial passenger aircraft to a number of airlines, including VietJet, airBaltic, easyjet, Air France and Virgin Australia. The business was founded in 2006 by Jeff Chatfield, its current Executive Chairman, and is quoted on the full list. From a standing start, Avation has grown its fleet to 48 commercial passenger aircraft and has a proven capacity to buy and sell aircraft assets profitably. Its fleet is well diversified both by aircraft type and customer base. Our forecasts presently only reflect the addition of ATR 72-600s on order, leaving scope for our estimates to be raised as further aircraft are added to the fleet. Ahead of full year results next month, we see scope for another year of strong progress in FY 2020E for this US$ business and see fair value at 346p, some 20% above the current share price.

Companies: Avation
  • 21 Aug 19

LIBERUM: Costain* - Interims slightly ahead and further evidence of margin progression

H1 results were slightly ahead of expectations with divisional operating margins increasing from 3.5% in H1 18 to 4.0% in H1 19. We leave our FY19 earnings estimates unchanged given that management has confirmed it is trading in line with revised expectations.

Companies: Costain Group
  • 15 Aug 19

Business update underpins forecasts

Vianet has released a business update this morning confirming trading for the first four months of FY20E has been as anticipated and the Group remains on course to meet market expectations. The Group has also successfully concluded negotiations on three long term contracts in its Smart Machines division; set to generate c.£10m of revenues over the next three to five years and underpinning forecasts. The shares have drifted back from recent highs of 147.5p to trade at just 118p (2.0 EV/Sales, 11.2x FY20E P/E) offering a compelling entry point yielding 4.8%. PT 185p. Buy.

Companies: Vianet Group
  • 23 Jul 19

Quarterly Research Outlook - Summer 2019

In January, we provided a list of 11 stocks for 2019 that we believed would perform strongly with attractive catalysts that could lead to material outperformance. In this Quarterly Research Outlook, we revisit these views, analysing what has happened and how the remaining six months of the year could play out.

Companies: AMS ANX ARS ATYM AVON BLVN PIER BUR CGS CAML CALL CSRT TIDE CYAN DTG DEMG ELM EMR FPO FST GTLY GENL GRI GEEC GKP HMI HAYD HEAD HILS HTG HUR HYR IBPO IOG INDI JHD JOG KAPE KEYS KCT KGH LAM LIT LOK MACF MANO PCA PANR PXC PHC PMO RBW RMM REDD RSW RNO RKH RBGP ROR SUS SCPA SHG SOLG SOM TWD TRAK TSG TRI VNET VTC ZOO ZTF

  • 19 Aug 19

LIBERUM: Clarkson* - Awash with opportunities

The deployment of new digital platforms creates an additional layer of barriers to entry, with the long-term potential to put Clarkson's technology at the heart of all shipping transactions. Nearer term, the new IMO sulphur rules are likely to squeeze supply in markets where the demand/supply balance is already becoming more favourable.

Companies: Clarkson
  • 13 Aug 19

China’s CB nears launch of digital currency, Uber falls to all-time low, Huawei debuts own operating system

An official at China's central bank has said the institution is nearing the launch of its digital currency. Speaking at an event in China over the weekend, Mu Changchun, deputy director of the payments unit at the People's Bank of China, said its researchers have been hard at work since last year to complete the systems needed to support the digital yuan offering and that it is "Close to being out." The news was reported by Bloomberg on Monday.

Companies: AMO BGO BOKU IQE TECH

  • 15 Aug 19

Trading update should be in line; recent weakness presents Buying opportunity

Kin & Carta will release a pre-close trading statement next week, a significant update in our view given the absence of material newsflow since the March 19 interims. We expect this to be in line, underpinning our forecasted 3.5% y/y revenue growth for FY19e (which assumes 28% LFL y/y growth in Innovation, -5% in Strategy and -11% in Comms), at a group 11.3% op. margin. Following recent share price weakness, we see the current 8.5x P/E multiple for FY20e (10.3% FCF yield) as being unjustified. Buy.

Companies: Kin and Carta
  • 15 Aug 19

Small Cap Feast


Companies: THR TRX KIBO VNET ALS PGR OCI JAN KRS IHC

  • 21 Aug 19

Interim results

Interim results are in line with the expectations outlined within the July trading update; NFI increased 7% to £36.3m (H118: £34.0m) and PBT fell to £3.7m (H118: £4.7m). Importantly, Management note that it remains on track to deliver full year profit expectations. At a PER of 5.3x and offering a 3.3% yield, the shares remain undervalued in our view.

Companies: Empresaria Group
  • 30 Jul 19

Positive AGM statement and $28.5m acquisition

Volex has issued a positive AGM statement and announced the $28.5m acquisition of Servatron, a complementary business based in Washington, USA. Our forecasts for FY2020E and FY2021E rise materially on the acquisition and also as a result of an operating margin performance that is noted as being ahead of current expectations. The AGM confirms a return to the dividend list that will occur at the interim and the Board notes it remains confident over the group’s outlook.

Companies: Volex
  • 21 Aug 19

Profits on course to meet market expectations

As flagged in the Group’s July trading update, NFI has grown by 6% year on year (yoy) in constant currency against a mixed trading backdrop. Adjusted PBT was lower by 21% as a result of lower temp books in Germany and Japan and the ongoing uncertainty surrounding Brexit. The Group also incurred higher costs in H1 following investments made in H2 2018. Once again, Empresaria demonstratesthe benefits that diversification brings to the mitigation of cyclical and specific operational risks within its businesses and because of this and its management equity philosophy the Group differentiates itself from other human capital resource companies. With Rhona Driggs now in place as the new CEO, we look forward to the Group delivering a sequentially stronger H2 in line with our forecasts.

Companies: Empresaria Group
  • 01 Aug 19

THE MONTHLY August 2019

The introduction of IFRS 2 in 2004 generated considerable debate about the best approach for handling ‘share-based payments’ (SBP). While it is clearly a cost to shareholders, which should be included in the statutory reporting lines through the P&L account, the question arose as to whetherit should be part of our underlying EBIT calculation.

Companies: AVO AJB AGY ARBB CLIG DNL DPP FLTA GTLY GDR KOOV MCL MUR NSF OXB PCA PHP RE/ REDX RMDL STX SCE TRX TON SHED VAL VTA W7L

  • 14 Aug 19

Small Cap Feast


Companies: SSY QFI SRB GFIN THR XSG LMS RENE OEX SO4

  • 02 Jul 19

Where’s the Value?

Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.

Companies: OPM ALU ANCR BLV CONN CRC FDL GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM