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#AST: Board changes and new strategy for Ascent as Hutchinson looks at new projects
EXCLUSIVE: Petro Matad announce fully funded 4 well Mongolia campaign

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Morning Shot

Morning Shot

Wed, 14th Feb 2018 - Author: Morning Shot

As the US bourses ticked up slightly in the Asia Pac area there was no such luck. The Nikkei 225 traded lower by 0.48% as JPY strength persists and the ASX followed suit and is down 0.25%, no such story in China as the Shanghai Comp. outperforms and trades up 0.46%.

Overnight commodities were mixed at the top of the leaderboard is nickel (0.71%), and lead, tin and zinc are all in the black while copper trades flat after a good session yesterday where the industrial metel closed 2.85% higher.

Gold has also put in a good performance over the last 3 days and overnight we trade 0.33% higher. We are currently back into a old consolidation area and there seems to be some traffic around the $1338.50 level. 

Yesterday the IEA revised its global demand forecast upward. Still, rising production, particularly from the United States may outweigh demand gains. Also the API report yesterday showed a larger build than expected, the data showed a build of 3.947M vs exp 2.800M/bbl. Spot WTI has been resilient trading in a volatile fashion but opening to closing ranges have been tight for the last few days. 


Morning Stories 



Steve Ashmore, Chief Executive Officer of HSS Hire Group plc said:

"We continue to make good progress in implementing our strategy and today's announcement is a significant milestone in delivering further cost savings in our supply chain. With clear implementation plans and highly engaged teams, who have responded positively to the proposed changes, we are confident in achieving savings towards the top end of our targeted range. This operational progress, combined with the extension of our bank facilities and positive Q4 performance, creates a strong platform to build upon in 2018 and beyond."  


#UJO 2018 is expected to see potentially high-impact drilling at Biscathorpe and Holmwood plus a new planning application to be submitted during April 2018 on Wressle.  In addition, results are expected from the workover of wells currently underway at the recently acquired Fiskerton Airfield and discussions will commence with the operator to progress potential development plans at the Dukes Wood and Kirklington oil facilities, as well as at the producing Keddington oilfield.



Dr Robert Trice, Chief Executive of Hurricane, commented:


"I am delighted that the Lancaster EPS development has passed another key milestone with the successful trial fit testing of the buoy in Dubai. I would like to thank Bluewater and Dubai Drydocks World for reaching this milestone ahead of schedule, whilst maintaining safe operations.


"I look forward to the next time that this equipment is connected which will be to secure the FPSO in place for the life of the Lancaster EPS. With other operations continuing as planned, we remain on schedule for target first oil in H1 2019."


Peter Truscott, Chief Executive, commented:


"We have delivered a strong financial and operational performance in the first half, with revenue growth across all three businesses and excellent progress against our 2021 strategy.


Linden Homes had a very strong first half, with both volume growth and improving margins. Our strategy of focusing on standardisation is proving to be effective and we continue to benefit from further operating efficiencies. The market continues to be positive, underpinned by good mortgage availability, the Government's ongoing commitment to Help-to-Buy, and the recent stamp duty cut for first-time buyers. Within Partnerships & Regeneration, we have delivered an excellent first half performance and continue to be very encouraged by the opportunities in the market, which give us confidence that this growing business will continue to deliver sustained returns over the strategy period and beyond. Our underlying Construction business is performing well with the margin drag of legacy contracts reducing.


 We have reviewed the impact on our business from the compulsory liquidation of Carillion, which has resulted in a further reassessment of the likely out-turn from our participation in the Aberdeen Western Peripheral Route (AWPR) joint venture, leading to an exceptional charge of £25m. Reflecting the additional financial obligations arising from this contract, we have today announced our plans for a capital raise of £150m. We have also brought forward our plans to increase dividend cover to 2.0x pre-exceptional earnings, with the result that we are today declaring an interim dividend of 28.0p.


We continue to maintain strict control over net debt, which is consequently better than our guided level. We enter the second half 

of the year with a solid foundation to build on and strong fundamentals for the housing market. While we remain cautious of the impact of the current political uncertainty and the medium-term outlook for the macro economy, we believe our focused strategy, strong order book and disciplined approach will deliver further growth and shareholder value."


#SKY SKY extend Premier League TV rights to 2022, Sky has chosen to pay £1,193 million per annum under the terms of the new deal, down £199 million per annum, a 16% cost reduction per game versus the current agreement.


#PLUS - Just remember the ESMA and FCA are still hanging around the spread betters.

·  76% revenues from Europe;


·  Cryptocurrency CFDs trading represented less than 15% of total revenues;


·  Over 75% of revenues derived from mobile devices;


·      Financial performance ahead of expectations:


·  EBITDA ahead of expectations reflecting improved margin and operational leverage;


·  Year-end net cash ahead of expectations reflecting strong cash generation;


·      Significant capital returns to shareholders during the period:


·  Total of $199.6 million being returned to shareholders, consisting of an interim dividend of $27.2 million, a final dividend of $92.6 million, a special dividend of $72.3 million and a share buyback programme of $7.5 million which was executed during 2017;


·  Together the dividends and buyback represent a total pay-out of 100% of net profit for 2017


#SXX Siirus signs contract with DMC - 

Graham Buttenshaw, Managing Director of DMC, comments:


"We are excited to be partnering with Sirius on this world-class project and are confident of leveraging our leading technology and experience to accelerate development of the mine and enable Sirius to bring its sustainable multi-nutrient fertilizers to the market earlier than previously planned."



Murat Özgül, Chief Executive of Genel, said:

"The 40% replacement of 1P reserves at Taq Taq follows the success of well TT-29w, and reflects the stability in cash-generative production that we have seen from the field in the second half of 2017. The significant increase in high-value Bina Bawi 2C oil resources offers a tangible opportunity for near-term value creation."


What to look out for


EU GDP and Industrial Production, US CPI, US Retail Sales, DoE Data.


Kind Regards

Rajan Dhall



The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.


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