|Northbridge Industrial Services
||US-based fund manager.
||EPS - Basic
||Market Cap (m)
Northbridge Industrial Services Share Discussion Threads
Showing 1901 to 1924 of 1925 messages
|I agree with this personally...
He says crude oil moves in a periodic manner, and once the downside period is over, the upside period will continue|
|wonder what would happen here if oil traded back up to to 70 next year.
|Loadbanks. USA. potential for sales....big country etc....loadbanks is big part of NBI....I cant see them selling the production part...integral part of loadbank division imo. The design & servicing/repair skills it provides is beneficial selling pt. for the division incl rentals.
Voltages. Disagree. Irrelevant imho. Most units are made to order I think. They have the expertise, years. They provide imho different voltages all the time. If mkt wanted std. units all the time with low specs. then NBI would imo struggle to compete on price vs produces in 2nd & 3rd world.
Set up production in USA. Phps if enough demand. 1st step wld be assembling kits sent from NBI imo. But no massive short term benefit to NBI EPS imho.
Imo in past the big profits came from Auz oil/gas rentals....at 55$/barrel my guess (100% correct imho !!) is that it wont hit same turnover & profits as before ( 110$/barrel)|
|NBI has two parts. Crestchic which manufactures loadbanks and the rental business which hires out loadbanks, generators, transformers and also oil tools. It is the Oil tools market that is primarily responsible for recent losses, although a large part of the loadbank market is focused on shipping. NBI is classified as 'oil services' which is due for consolidation.
Will NBI be gobbled up or will it be a survivor?
I believe that the Crestchic manufacturig arm, which is free standing, will be sold off. The US market for loadbanks, which has great potential, has slightly different properties than Europe (Voltages??). I suspect that Crestchic needs to be badged with a US brand and create a manufacturing base in the US..
Interest rates are low and we have a weak pound V US dollar.|
|06-Dec-16 10:00:19 124.50 22,500 Buy* 120.00 125.00 28.01k O|
|...if Scottish oil industry picks up....not much use to NBI since they dont hire oil tools to Scottish oil sector
NBI needs AUZ oil/gas sector to pick up
And offshore oil sector unlikely to ever return to previous exploration activity until after USA oil fracking sector has closed down (since its volume supply capability in 60-100$ range caps max. oil price).....many years away phps...(while noting I know little about oil sector, but I think Im right)
Load bank sales to shipping sector....not going anywhere soon imho.|
|Oil and gas industry shows 'green shoots of recovery' as confidence grows amongst operators and contractors
A report by the Fraser of Allander Institute says that optimism is slowly returning amid signs of a slowdown in job losses
|Paal Kibsgaard at Schlumberger told analysts: “We have indeed reached the bottom of the cycle”, and started setting out the company’s plans for the “recovery phase”.
|..."immediate outlook is still challenging"
& fundamentals for Auz oil.....risky/doubtful imho.....at current & 10 yr future oil price (capped due to USA fracking) the Auz oil sector may not fund any exploration drilling imho.....& NBI has stacks of exploration pipes sitting unused...|
|personally looking for a move back over £2 in time.Obviously could go far higher. The sector will recover next yr imo.|
|Nice breakout after the wide base at lows.|
|KPMG: Modest upturn in oilfield services M&A in 2017, 2018
November 28, 2016
Mergers and acquisitions (M&A) could become a greater feature of the oilfield services landscape in the next 18 months as businesses move out of survival mode and look to the future, according to KPMG.
Oilfield services companies that have adapted their businesses during the downturn and have relatively stable trading patterns are beginning to think strategically about how to position themselves for future growth opportunities. With fragile stability returning to oilfield spend and activity, KPMG expects to see a modest revival in M&A activity in the service sector through 2017 and 2018.
These were the key findings from responses at KPMG’s recent M&A seminar in Aberdeen.
Short to medium term deal activity will be driven by technology and solutions, rather than capacity requirements; and the relative weakness of sterling should provide a boost to inward investment in the UK, although most companies within the industry have global outlooks.
Strategic acquisitions and more innovative deal structuring are expected to remain features of deals in the sector for some time while private equity is still seen as the likeliest source of capital for growth.
The trading environment remains mixed for companies in oilfield services and there will be different lead in times for recovery for its various subsectors, depending on their position in the life cycle chain.
Alan Kennedy, KPMG partner and UK head of oilfield services, said that the growing sentiment in the sector was that the market had stopped getting worse, prompting companies to start looking ahead to new opportunities.
“There is a growing view that things have stopped getting worse, at least in some areas of the sector. Companies that are in reasonable shape in terms of their balance sheets, have sorted out their finances and have stabilised their trading at today’s lower level are beginning to think strategically again and looking ahead three to five years. M&A growth through acquisition is a big tool in the box for them when there’s limited organic growth to be achieved through new projects in the current market,” said Kennedy.
“Interestingly, attendees at our seminar still see private equity as the likeliest source of capital for growth in the short to medium term and we expect to see North American bidders active in the UK domestic market, capitalising on the weakness of sterling. An increasing number of companies in the sector are saying they anticipate being involved in M&A activity in the next 18 months.
“The market themes that we expect to see through 2017 and 2018 are global integration of services over the life of field, diversification into downstream and adjacent space, non-cash mergers and private deals, as opposed to auctions. The short and long term value of sterling is also going to play a part in the UK market but the fact remains that the number and size of successful deals in the past two years have been inconsistent with the capital available to deploy,” said Kennedy.
Dane Houlahan, corporate finance partner with KPMG, added: “Non-traditional buyers are well capitalised and well positioned to make deals in this market but the execution of transactions and investments is not without problems. Process delays and misalignment of strategic goals and price expectations are real hurdles and the ability to assess and manage risk will be critical in a market that remains fragile.”|
|Looking forward to 2017 and beyond, there have
been some more reassuring announcements from
the oil service majors who form part of our customer
base. They rely more on the activity levels in the oil
fields rather than the oil price itself and they believe
the worst is over and are predicting a return to more
positive levels of business in the future. If this is the
case, we remain well positioned to benefit from the
market upturn as and when it arrives. In the meantime
we will continue to reduce costs and maximise cash
generation whilst competing hard for every opportunity.|
Whilst the immediate outlook is still challenging
and we are experiencing further downward pressure
on our sales of manufactured products, which tends
to be a lagging indicator, there are some signs that we
may have reached the bottom of this economic cycle
with regard to the oil and gas industry. Some positive
statements from the oil services majors and planned
drilling campaigns for 2017 give hope that the market
will start to turn soon.
We have already seen some modest geothermal drilling
revenue from New Zealand and a planned increase in
operating rigs in the Middle East. The oil surplus and
the over supply problems facing the industry is beginning
to be resolved and all the oil companies have now cut
costs to the extent that further investment in E&P is
worthwhile, despite the low oil price.
Having maintained the size of our hire fleet, expanded
its geographical reach, reduced our overhead costs
significantly and strengthened our balance sheet, we
are in a very good position to take advantage when the
opportunity of improved trading conditions arises|
the longer they base the higher to space|
|I took a position today and am rather surprised to find the board so dormant.
It looks a significant breakout to me. 100p has been an important line in the sand -both on the short term chart and the longer term chart:
My hunch is that the oil services sector is beginning its recovery. LAM, for example, has also started to look perky these past few days.|
|This is a highly geared recovery / momentum stock. The market tries to look ahead and now likes what it sees. The company has always depreciated stock at a generous rate. Load banks have a long life expectancy.Drilling will eventually resume and many competitors have bitten the dust. Vulnerable to take over.|
|I agree with you. I'm amazed at the price increase here after some truly awful interims. The results were worse than everyone would have thought possible. Hopefully they will survive but it's a long way back from where they are today.|
|any views from oilies ?|
|clearly the MD and the mkt dont agree with my last post !
but did the MD buy assuming that price will be X dollars in the future....and will it actually get to where he thinks/hopes ??
.....at least he is on a crazy salary in grey UK (where the co. has no real turnover apart from making load banks) while he waits
(so many countries need oil income so keen to keep pumping rate high...been slowly price rice from 30 to 50$ (Saudis, Russia, Venez, Brasil...)....have to wait to see the future)
Even with oil price rises....there is I think a fair amount of unused capacity which can easily be switched back on (needing to hire nothing from NBI)...without needing to do exploration drilling, after hiring kit from NBI.|
|surprised by the jump in sp
disastrous results imho
generation of cash is not enough to cover depreciation and replacement of hire fleets....and if results continue like this for too long then the hire fleet will eventually be creaky old stuff that is difficult to rent out, imho
Fall in debt. In that section it makes no mention that most of debt reduction was due to rescue cash raise , imho done because banks INSISTED !! , recalling the previous mention of breaking covenants...
Claimed TNAV/share.....complete lies imho. The real value of the equipment is much lower, they just havent reported its true value.....the current true value of the oil sector and load bank kit is much lower than reported since claimed value does not consider current market and current renting % etc. Stuff you can not rent out has little real current value, even if you claim that in your accounts. You would get a very low price for it at present if tried to sell it, no buyers and shed loads of unused kit all around the world.|
|Another negative update on the oil and gas sector. Still watching here. If they hadn't bought Tasman no doubt they would be doing much better than they are.|
Saudi...graduate in oil stuff couldnt get a job in the sector
..finally did I think in Kuwait
If quiet in Saudi one assumes it must be super quiet in Auz|