||EPS - Basic
||Market Cap (m)
|Oil Equipment Services & Distribution
Real-Time news about Rheochem (London Stock Exchange): 0 recent articles
|rivaldo: The share price is rising nicely despite there being no increase in holdings RNS yet. Perhaps on Monday morning.
Meanwhile the UK price still lags the Aussie price.|
|rivaldo: We know that RHEP will have an operational update out imminently - this could provide a big near-term share price trigger:
"The Company will be issuing an operational update shortly, to provide the market and shareholders with a deeper insight into the existing exploration, appraisal and production portfolio already contained within the business. We are confident in the potential of the portfolio to generate significant opportunities as we progress the assets through the value chain.""|
|omnitrix: Only cloud i can see on the horizon is the Senergy court dispute which could result in a $11m payout but as this is already in the accounts as a contingent liability i'd imagine there would be only share price upside from a resolution where they met half way or they do otherwise conclude the process ? October 2011 is the court date set apparently.|
|rivaldo: Nice write-up in the IC - should play well in Friday's print edition:
Created: 2 March 2011 Written by: Nigel Bolitho
Rheochem has certainly tested investors' patience, but there should be better news ahead. At first glance, the latest half-year results are the usual story of disappointment. But they relate to a period when extensive floods in Queensland and South Australia forced drilling rigs to stop work for several months - so demand for drilling mud dried up. The same problem has occurred in 2011 but it isn't so bad.
It's not so serious this year because the high price of energy is encouraging much more drilling activity, both offshore and for coal-bed methane in Queensland. Indeed chief executive Haydn Gardner says the current half year is looking "very promising" with expected revenues "well in excess" of the interim figure.
But the spotlight at Rheochem has now spun back to the North Sea. After a major write-off, the company's balance sheet only includes one interest (valued at A$27.58m) and that is a 10 per cent net interest in the Athena field in the Outer Moray Firth. The operator, Ithaca Energy, has just completed a water injection well and there is one more well to be drilled. Oil should start to flow late this year with Ithaca expecting a flow rate of 22,500 barrels a day.
ORD PRICE: 14.375p MARKET VALUE: £ 35.9m
TOUCH: 14.25-14.5p 12-MONTH HIGH: 15p LOW: 5.125p
DIVIDEND YIELD: nil PE RATIO: 13
NET ASSET VALUE: 15c NET DEBT: 21%
Half-year to 31 Dec Revenue (A$m) Pre-tax profit (A$m) Earnings per share (¢) Dividend per share (¢)
2009 11.8 -1.81 -0.30 nil
2010 10.2 -1.60 -0.70 nil
% change -14 - - -
Aim: Oil services.
£1 = A$1.5817
No brokers have full-year forecasts, but Rheo should turn in a profit if the demand for drilling rigs (and so mud) is as strong as Mr Garner suggests. The share price has recovered smartly from its mid-2010 low of 5p and the shares remain a buy."|
|rivaldo: Indeed ducatiman - RNS finally out at 7.30. I wonder if it would have got more attention if it had been out on the dot at 7.00?
An amazing run of contracts recently for the core fluids business. I just wonder what sort of profitability we're looking at going forward, even without anything for the North Sea interests?
There's absolutely no broker support AFAICS, with no guidance going forward. If there was, perhaps the share price would be in the 20p's now.
If anyone has any broker coverage at all (from an Aussie broker perhaps) from the last year or so it would be great to see it.|
|rivaldo: That would make sense - except that the share price was actually much cheaper in Australia than here yesterday! So no, it's likely to be UK-based demand driving this.
Overnight the Oz price has moved up 10% to basically the equivalent of the UK price.|
|rivaldo: Absolutely right captain. If a poster is known to me as a good guy from around the threads I'll always take notice of suggestions.
Talking of which, if you really want a binary bet for a part of your portfolio, I recommend you take a look at MTT. It's a £6m m/cap tiddler making $50m or so sales of tungsten per annum at present. Four points:
- the current share price is 16p, but in the past MTT has been up to 250p. There's been absolutely no dilution since then
- the market hasn't appreciated that the price of tungsten has rocketed to over 3 year highs over the last few months, so MTT may well be trading profitably now - we await a trading statement for 2010
- if the price of molybdenum appreciates a little, MTT might re-open its moly producing facilities
- there are other potential drivers to the share price. These 3 excellent posts tell you everything you need to know about MTT:
Apologies to all for the OT.|
|varies: I have sold a few shares in recent weeks to reduce a holding that I saw as disproportionate to the risks involved.
Whilst I remain nervous, it is a comfort to see the recent comments by IMDEX LTD, an Australian company whose shares have done very well this year; regrettably I do not hold any. These suggest that the market for drilling muds has improved greatly in recent months.
I hope that I will not be be accused of puffing the share price if I hazard a suggestion that at some point Imdex might wish to add RHEP's drilling muds business to its own. My only ground for this suggestion is that Imdex has swallowed up several competitors in recent years.
I had never heard of Imdex until I looked up Australian drilling mud businesses an hour ago and so have no claims to any expertise, let alone inside knowledge !
Having said that I confess that a revival in RHEP's share price might tempt me to sell some more shares and perhaps, for the sake of diversification, buy a few in Imdex.
On the minus side for RHEP are, of course, the Synergy lawsuit and the need to refinance a big loan very soon. So I remain very much in two minds.
It would be a comfort to me at least to see Zeus sold off but ENVOI has not yet managed to find any purchasers or joint venturers for blocks 14/11 and 14/26b and Zeus stands to lose 14/11 at the end of December if no partner is found.|
|longshanks: Good article - even though spelling and grammar errors abound. Produces a well balanced view.
The bull point: Rheochem at a production of 2,200 bopd would earn a revenue of US$56.2m ((2200 x 70) x 365) in its first year, with a cash flow of US$36m ((2200 x 45) x 365), and a profit of US$17.6m ((2200 x 22) x 365). Of course this revenue will dwindle after the first year as production falls off, but nevertheless, the fact remains that in its first year of production, Athena will earn a greater cash flow than Rheochem's current market cap.
is balanced against the bear point that they have pending litigation that will make it difficult to sell the asset at a decent price or raise finance for it.
There is an element of gamble here on the validity of Senergy's claim but one can expect that if it gets cleared up fairly expeditiously either by the court throwing it out or RHEP settling then the net effect will be positive on RHEP's share price.
Cash flow greater than RHEP's current market cap.....that is the prize.|
|longshanks: By the way, whilst looking for information on the web that could possibly give some lead as to the action being taken by Senergy, I found the following:
Figures seem to stack up with the claim being made by Senergy.
Interestingly this dates to 19th May which coincidentally was about a week after a sudden spike in the RHEP share price. At the time the company made an announcement that they knew of no reason behind the rise - which kind of suggests that there was no well planned. Now it could have been that a well had been planned - and put off - but Senergy either didn't ask or made some presumption. There was a leak of info and someone bought a lot of shares (naughty naughty).
Given this statement on the 13th I would expect that this gives Zeus (RHEP) some credibility over Senergy when it comes to court - especially given that Senergy are looking to have some wording of the Letter of Commitment "rectified".
I wonder if RHEP should also ask the FSA to make an enquiry into insider dealing by Senergy executives?|
Rheochem share price data is direct from the London Stock Exchange