Utilities

Utilities equity research

Explore the most viewed and latest equity research and media content for companies within the Utilities sector. Companies within this sector provide services including electricity generation, water, gas and multiservice utilities.

Utilities equity research

27 Aug 19

Foreign buyers gorging on UK stocks

Like whales feasting on Krill, overseas firms are today stuffing themselves silly with choice fillets of corporate Britain. Why? Well look no further than geopolitical tensions and Brexit, which have disproportionately impacted UK equities and the £. Indeed the FTSE100 has lagged the S&P500 by a hefty 19% over the past 2 years, with Sterling dropping to 34 year lows vs US$ (see below). That said to us, based purely on fundamentals, this period of underperformance appears over-cooked, leaving many quality British companies vulnerable to predatory interest.

Companies: VOD AV/ AGK CHG CNA ITV BRBY SMIN CTEC SXS OXIG MGAM IMI WEIR WMH KMK EYE GATC ULS INS ALFA RDT TSTL ELCO MBH BLTG IHC 9537 CSRT NBI

12 Sep 19

Trading update, prior year accounting adjustments

Post the group’s March period end, the company has made a further trading update ahead of its results, due before 30 September. It affirms previous expectations on revenues of £50m and a reported EBITDA loss of c£1.3m. Following the integration of the Wood Fuels business and an accounting review, it has announced that prior year stocks and receivables have been overstated by around £4.7m, resulting in Net Assets of c£13.3m in March 2018 and c£23.8m in March 2019. We have adjusted our net asset forecasts accordingly. Corrective action has taken place on systems and there is no effect on the 2019 P&L forecasts.

Companies: Aggregated Micro Power

28 Mar 19

Cenkos: Fulcrum Utility Services Ltd - An opportunity to get them cheap

Today's trading update highlights positive progress across the group with exception of certain larger, electrical projects, which remain subject to ongoing external challenges. Despite the headwinds, given its newfound breadth across various revenue streams, Fulcrum is still set to deliver revenue of c£57.0m (+28%) and adj EBITDA of £11.0m (+31%) this year. We feel the recent share price fall has overly discounted for risk relative to today's revisions to forecast adj EPS of -13% (FY19E) and -24% (FY20E).

Companies: Fulcrum Utility Services

14 Nov 18

Unsurprisingly weak H1 results

SSE reported a weak set of H1 results, in line with the September profit warning. Adjusted operating profit was down 24%, to €448m on the back of lower renewables output and losses in the group’s EMP activities, due in part to a losing short position on gas prices. The group reiterated its five-year dividend plan.

Companies: SSE

23 May 19

FY18/19: a positive year in preparation for AMP7

United Utilities posted a positive set of results for its FY18/19 closing in March. UU delivered in revenues and underlying EBIT and surprised on underlying net profit, which came in 6% above consensus estimates, and reported net profit +6% above our own estimates. After achieving ‘fast-track’ status from the regulator for its 2020-25 business plan, UU is now ready to ramp up investments in preparation for AMP7, the next regulatory period.

Companies: United Utilities

27 May 19

Weak FY18/19 results

SSE released a weak set of FY results, lower than our estimates. Network segment was the only one to grow, but not enough to compensate for the decrease in Wholesale and Retail. The group reiterated its five-year dividend plan.

Companies: SSE

01 Aug 19

Cenkos: OPG Power Ventures Plc - FY19A results

OPG reported strong FY19A results, beating our expectations on Adj EBITDA, EPS and net debt. Despite an expected favourable backdrop in FY20E of lower coal prices and firm tariffs, planned plant closures to upgrade equipment to comply with new emissions legislation lead us to revise our forecasts downwards.

Companies: OPG Power Ventures

10 Sep 19

Is Verbund a carbon call option?

Verbund is up by more than 45% ytd, comfortably outperforming the Stoxx600 and the evolution of the baseload, its core business. Its almost 100% green energy mix makes Verbund the perfect proxy to play the rise in the price of carbon. However, the market seems to be ignoring the negative operating aspects. Based on fundamentals, we confirm our negative view on the stock.

Companies: VERBUND

10 Oct 16

Armadale Capital - Project Update

12 Jul 16

finnCap - Initiation of coverage, Fulcrum

Premium

10 Sep 15

Armadale Capital - Interim Results

24 Sep 15

Armadale Capital - Remains on track for commercial production in H1 2016

09 Nov 18

Executive interview - ERM Power

21 Feb 19

OPG Power Ventures Investors Overview

12 Jan 17

Capital Network's Stacey: 2017 is the year Mytrah Energy will unlock value

15 Feb 16

Armadale Capital - Update at 121 Mining Investment

03 Aug 15

Developed process route for gold recovery

08 Jun 15

Armadale Capital - Agreement to fund and develop the Mpokoto Gold Project

10 Dec 18

Executive interview – 2G Energy

26 Oct 16

Armadale Capital - 85% strike rate from drilling Tanzania

07 Jul 15

Armadale Capital - Andrew Tunks: Key to a successful gold operation

27 May 15

Executive Interview - KTG Energie (German version)

23 Nov 16

Armadale Capital - Full assay results confirm exceptional high-grade graphite deposit

Latest Content

Aggregated Micro Power

Trading update, prior year accounting adjustments

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12 Sep 19
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Aggregated Micro Power eServGlobal

Morning Note – 12 September 2019

Aggregated Micro Power (AMPH): Corp Trading update, prior year accounting adjustments | Wameja (WJA): Corp Mastercard will explore multiple solutions

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12 Sep 19
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LID OVB HMLH TUNE AMPH DGOC ANIC UKOG BIOM PVR

Small Cap Feast

MRYT PHARMA PLC— a biopharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases have raised $60m before expenses and will relist on the AIM Market on the 25/09/2019

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12 Sep 19
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ACP BOTB IOG

Morning Note – 11 September 2019

Armadale Capital (ACP): Corp Mahenge Liandu project update Armadale | Best of the Best (BOTB): Corp Reassuring AGM update on all fronts | Independent Oil & Gas (IOG): Corp Harvey appraisal well update

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11 Sep 19
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SRC SIS 88E CTR EAH ACP KRM RGO CGNR ALTN

Small Cap Feast

AMRYT PHARMA PLC— a biopharmaceutical company focused on developing and delivering innovative new treatments to help improve the lives of patients with rare or orphan diseases have raised $60m before expenses and will relist on the AIM Market on the 25/09/2019

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11 Sep 19
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VERBUND

Is Verbund a carbon call option?

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10 Sep 19
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PNE Wind

PNE Wind - Scaling up

PNE is currently focused on expanding its business into new technologies (including solar) and emerging markets to access new profit opportunities, which the company expects will boost EBIT by 30–50% vs the historical average by 2023. On 26 August, PNE announced that it is in discussions with Morgan Stanley Infrastructure Partners about potential co-operations and investments that would include a takeover offer for PNE. PNE received an indicative non-binding offer for 100% of the shares, valuing the company at €3.50–3.80 per share.

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03 Sep 19
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VOD AV/ AGK CHG CNA ITV BRBY SMIN CTEC SXS OXIG MGAM IMI WEIR WMH KMK EYE GATC ULS INS ALFA RDT TSTL ELCO MBH BLTG IHC 9537 CSRT NBI

Foreign buyers gorging on UK stocks

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27 Aug 19
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ERM Power

ERM Power - Shell announces takeover offer

ERM Power has announced a takeover offer by Shell Energy Australia for 100% of its share capital at a cash price of A$2.465 per share, broadly in line with our DCF-based base case valuation of A$2.4/share. ERM’s directors and the largest shareholder, Trevor St Baker, support the proposal, which will be subject to shareholder approval – likely in or around early November 2019.

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23 Aug 19
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Elecnor

Profitability improved in H1 19

Despite the soft top-line performance, Elecnor clocked 5% growth in H1 net profit, thanks to lower operating expenses. The order-book at the end of the period stood at €2.24bn (backlog / revenue: c.1x). Management has reiterated the full-year guidance of growth in both the top-line and profitability.

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