Malcy's Oil Report - HTG, AMFW, GKP

Thursday, Aug 27 2015 by
3
Malcys Oil Report  HTG AMFW GKP

WTI $38.69 -71c, Brent $43.14 -7c, Diff $4.54 +64c, NG $2.69 +1c

Another flash blog this morning as there are so many results and meetings that I will have to revert after most, herewith a very quick summary with more to follow after meetings.

The oil price stayed relatively subdued after the EIA inventory stats all but confirmed the API numbers with a draw of 5.5m barrels against consensus of a build of 1m barrels. Yesterday I gave an interview to IGTV in which I reiterated the negative fundamentals for the oil price but made a possible left field case for what just might turn out to be a change in policy for Opec, you can watch it here.

https://www.ig.com/au/live-video?bctid=44450692650...

Results this morning from Hunting were in line with expectations after previous reports and in what was the worst quarter for oilfield service companies particularly in the US. Revenue is of course down and the company reported a loss from operations of $63m, EPS being a loss of 35.5c. Accordingly the dividend was cut from 8.1 cents to 4 cents which came as a bit of a surprise but maybe quite a wise move under the circumstances. I say that as Hunting  is coming towards the end of a series of capital investments in projects which remain under way and will consolidate the company’s operations and ‘position the business for the future’ which includes a substantial expansion project in Singapore which should complete in early 2017. Even with this expansion debt has only risen to $166m and gearing is only 12% so the finances are in pretty good nick and the divvi move probably signals part of the cost cutting which so far has amounted to $41m and a reduction of 25% of the labour force, sharing the pain, so to speak. More after the meeting but not unhappy…

Elsewhere Amec Foster Wheeler are reiterating the mantra of lower revenues, reduced trading margins but with a $50m currency gain due to the strong dollar, again more later.

And Gulf Keystone also say that operationally things couldn't be going much better but they are still owed a significant amount in back revenues, today’s statement from the MNR should help. Meeting same time as Hunting which doesn't help so might have more later.

And I will go to the Lamprell meeting at lunchtime in order to find out if…

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Hunting PLC is an international energy services provider to upstream oil and gas companies. The Company's segments include Well Construction, Well Completion, Well Intervention, and Exploration and Production. The Well Construction segment provides products and services used by customers during the drilling phase of oil and gas wells, along with associated equipment used by the underground construction industry for telecommunication infrastructure build-out and precision machining services for the energy, aviation and power generation sectors. The Well Completion segment provides products and services used by customers during the completion phase of oil and gas wells. The Well Intervention segment provides products and services used by customers during the production, maintenance and restoration of existing oil and gas wells. The Exploration and Production segment includes its oil and gas exploration and production activities in the Southern United States and offshore Gulf of Mexico. more »

LSE Price
495.2p
Change
0.3%
Mkt Cap (£m)
826.7
P/E (fwd)
11.9
Yield (fwd)
2.1

Amec Foster Wheeler plc operates across the oil and gas value chain from production to refining, processing and distribution of derivative products in oil and gas, mining, clean energy, and the environment and infrastructure markets. The Company's segments include Americas; Northern Europe and CIS (NECIS); Asia, Middle East, Africa and Southern Europe (AMEASE); Global Power Group, and Investment Services. The NECIS unit operates in various markets, such as environment and infrastructure; clean energy, primarily in the nuclear industry, including asset support, decommissioning and new-build programs, and oil and gas, across the value chain and lifecycle for projects onshore and offshore. The AMEASE segment has over 40 locations across its oil and gas, environment and infrastructure, and mining markets. The Global Power Group business unit designs, supplies and erects steam generating, auxiliary and air pollution control equipment, as well as various aftermarket products and services. more »

LSE Price
546.5p
Change
0.2%
Mkt Cap (£m)
n/a
P/E (fwd)
n/a
Yield (fwd)
n/a

Gulf Keystone Petroleum Limited (Gulf Keystone) is a holding company, which is engaged in the oil and gas exploration and production. The Company operates in the Kurdistan Region of Iraq. It operates through segments, including Kurdistan Region of Iraq and United Kingdom. The Kurdistan Region of Iraq segment consists of the Shaikan, Ber Bahr blocks and the Erbil office, which provides support to the operations in Kurdistan. The United Kingdom segment provides geological, geophysical, engineering and corporate services to the Company. It operates in the Shaikan oil field. The Shaikan block is situated over 85 kilometers northwest of Erbil, covering an area of over 280 square kilometers. more »

LSE Price
239p
Change
2.8%
Mkt Cap (£m)
532.8
P/E (fwd)
8.3
Yield (fwd)
4.4



  Is LON:HTG fundamentally strong or weak? Find out More »


1 Comment on this Article show/hide all

underscored 27th Aug '15 1 of 1

Hi Malcy, thanks for the update, would be interested to hear back regarding £Lam

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About Malcolm Graham Wood

Malcolm Graham Wood

Malcolm has over 30 years' experience in the Oil & Gas sector and is a widely used media source. He often appears in print and on screen, and also writes an acclaimed daily blog read by much of the resources industry as well as investors both institutional and retail.Malcolm is a Founding Partner of HydroCarbon Capital, which provides independent advisory services to the Oil and Gas sector. He is a Director of the Maven Income and Growth VCT 4 PLC, a venture capital trust listed on the Premium segment of the main market of the London Stock Exchange.He started his career at Wood Mackenzie in 1979. He was an inaugural member of the No 1 Extel rated James Capel Oil & Gas team and also headed up corporate broking, acting for the Government in sales of British Gas, Britoil and other utilities. Subsequently he became Head of Equities and main board Director at Williams de Broe before moving to Teather & Greenwood. Following that, he ran his own consultancy for several years, acting for a number of quoted and private companies as well as being a board member and advisor. He has been a Director at Noble and then Westhouse Securities and has extensive contacts in the Oil & Gas sector globally. More recently Malcolm has been the lead advisor to an HSBC Zurich trust on oil, gas and energy investments as well as working with the oil team at VSA Capital.- See more at: http://www.malcysblog.com/about/#sthash.Jdn1d7dK.d... more »

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