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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Sovereign Oil | SOGP | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 4.25 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 4.25 | 4.25 |
| Top Posts |
|---|
Posted at 25/2/2010 06:31 by solarno lopez I am genuinely sorry for all those who have last money despite my knowledgeable warning but absolutely delighted to have given a bloody nose toGIANTPEACH2,QURUAISH As a matter of interest to all investors you might like to read there previous and then you will appreciate their lack of of knowledge. How are you ROCKY? |
Posted at 19/1/2010 15:58 by solarno lopez lets hope so for all those investors still there |
Posted at 01/12/2009 18:39 by jotoha2 If you think this company has been promoted , just take a look at Rockys sco board , talk about blatand ramping , and what happened to the share price .....it was diluted 50 to 1 , so investors took a big hit, well done rocky , suggest you get the fsa to look into that one as well...total plonker . |
Posted at 20/10/2009 14:08 by 21simthy Dont understand your issue with Sc..I bought it at 8p, it hit 25p bid last week ? If you are going to knock me then find a bad stock that has failed this year ? Yeah i've had bad ones in the past Dvs for starters but i can admit it and can post when i sell my stock, you are just a danger to new investors to this site. Will anybody defend topinfo here and say he is not a pump and dumper ? |
Posted at 27/8/2008 09:05 by mdchand This article is dated April 2008 - taken from Neither Graham Burgess nor I could believe that nearly a year has passed since we last reviewed the progress of the AIM-listed company that he and Peter Felter established in 2003 and took public in 2005. It has been a year of solid consolidation amid global economic conditions that have sometimes been favourable, sometimes challenging but never dull. The group was conceived in a highly entrepreneurial way to take advantage of the demand from oil and gas companies for integrated fabrication and drilling services as a kind of two-pronged approach to meeting these customers' prime operational requirements. From the start, the strategy was to build the company by acquisition: the pre-and post-flotation acquisitions are detailed in my June 2007 Exec article*. Bedding in Early 2007 saw a flurry of acquisitions, facilitated by a £50 million line of credit extended by the group's bankers Merrill Lynch. Dunfermline-based Forfab, purchased in January, was followed in March by RDT Precision Engineering of East Kilbride and, in April, by Labtech Services and Vertec Engineering, both of Aberdeen. Together these companies represented a large chunk of fabrication capacity, and while Sovereign has a policy of allowing its subsidiaries a fair amount of autonomy, they took a while to bed in, as Graham puts it: "We went through a quiet period during which we held back deliberately from making any further acquisitions. As a policy, when we add a company to the group we put in management teams and keep open the lines of communication but we don't try to integrate two management teams into one. We'd look upon amalgamating the businesses as a waste of resources." For example, Labtech and Vertec both manufacture and fabricate accommodation modules, engineering cabins, engineering cabins for wellheads, for the ROV industry and for mudlogging in the oilfields for companies like Baker Hughes, Schlumberger and Halliburton. If they were to be amalgamated, they would probably lose 25 percent of the combined market share they command far better to allow them to continue to operate independently and even compete, each contributing valuable resources and skills to Sovereign's global fabrication capacity, Graham believes. Rough winds These darling buds of May 2007 withstood the rough economic winds of 2007, and business has grown strongly. However, the said winds did shake the group's further acquisition plans. It had been Sovereign's intention to add two more drilling services businesses, but the credit squeeze put the wind up the banking backers and these deals had to be abandoned. The consolidation period is complete now, and the group has been reorganised into two divisions, a Fabrication Division with seven operating subsidiaries, and a Drilling Division with five subsidiaries. The Fabrication companies have done particularly well over the last year, and recently announced a number of significant contracts totalling £7.35 million. OIL Engineering Limited, specialists in structural and pipework fabrication services, has been awarded two contracts. One for the manufacture of manifolds for the North Sea Victoria Project at a value of £1 million, and the other for the manufacture of lifting and handling frames for Acergy Norway AS value £0.5 million. Vertec Engineering, designers and manufacturers of specialised fire protected cabins and local equipment rooms for the oil and gas, renewables and transport industries, has been awarded contracts totalling £2.85 million. These include a contract with FMC Technologies Inc for £1.2 million for the manufacture of a VSD Module, and a contract with Saipem America Inc for the manufacture of A60 workshop/control vans at a value of £0.65 million. Forfab has been awarded contracts estimated to be in excess of £1 million for the design and manufacture of storage and pressure vessels for export to the Middle East. Labtech Services, which designs, manufactures and hires containerised and skid mounted equipment, has been awarded a contract to design, fabricate and install an accommodation module onboard a North Sea drilling rig. This contract is valued at £1 million. Meanwhile, Oil Engineering Middle East LLC, based in the Group's new facilities in Abu Dhabi, has been awarded a contract for the fabrication of two accommodation modules for FPSOs currently under manufacture in the Middle East. The contract value is estimated to be in excess of £1 million. Unique in the North Sea Graham is understandably delighted at these successes: "The Fabrication Division is now a major force in international manufacturing services," he says. He is also pleased with the drilling companies though it's here, if anywhere, that there have been setbacks. Three of the companies have been trading strongly. One experienced a delay in the delivery of some contracts, so has not achieved the revenue hoped for in the period. Another company, Diamant Drilling Services (DDS), however has resisted efforts to move it into profit. In line with a strategic decision taken last year, DDS is now on the market, having not achieved profitability by September. There's no lack of interest in DDS, which has sound and innovative technology, says Graham. However a more fundamental change in the structure of the group will take place when the remainder of the Drilling Division is sold out of the Group, so that the quoted company Sovereign Oilfield Group will become a large and profitable focused fabrication business. "Because the fabrication businesses are trading strongly we'd expect that division to be profitable going forward, and so we would be able to return some value to the shareholders," he explains. The split has been approved, and will take place later this year following a further reorganisation of banking facilities. The background to the business, against which it was conceived, has of course grown stronger with increasing global demand for oil and gas and rising prices. In the eyes of the public, and even in the investor community, there seems to be a tendency to conflate the price of the commodity with the profitability of the companies that service the industry. The industry is struggling to meet demand, and the only way to do that is by more drilling and more intervention, which is Sovereign's core business. And when the oil prices went up, the market expected to see an immediate rise in profits of related companies - which didn't and doesn't happen, because there's no direct link. Comprehending complexity The Stock Exchange for its part struggles to understand the oil services industry, says Graham, especially when it is as complex as the Sovereign Oilfield Group, so he has learned lessons from the larger Abbot Group and its CEO Alasdair Locke. "It was only when they focused on a single business stream, which in their case was drilling rigs, that they started seeing value moving into their shares. I think we are moving in the same direction now by focusing on fabrication." Sovereign Fabrication Services is now unique in the North Sea area in that it can deliver a full range of fabrication services from general fabrication to subsea structures, to pressure vessels to pipework, right through to cabin work and accommodation modules, Graham says. "We are now chasing larger contracts where delivery can be shared between group companies but the whole structure is delivered by the SFS with each of the subsidiary companies contributing the part that is its specialisation." Chasing larger integrated contracts is the company's main priority. Close on its heels is the goal of replicating its North Sea success, focused in Aberdeen, at Abu Dhabi, a single facility that focuses the skills of all the companies in one location. Abu Dhabi has also performed strongly over the last year and is currently working on a large accommodation module. Geographical expansion That operation is a huge success already, and the model for future expansion in other geographical areas. Next on the list will be West Africa where discussions are currently taking place Graham is confident of having a site and a local partner by the end of this year. After West Africa, Sovereign wants to establish integrated fabrication facilities in Norway and Brazil. In the case of Norway, the route of choice would be via acquisition, so the timing for that option could yet be dependent on the availability of capital. Brazil and West Africa can be established with a local partner and therefore don't need the same level of new investment. With an order book worth some £30 million and a burgeoning market, Sovereign is in a good place even without the expansion that the entrepreneurial and impatient Graham Burgess needs to make happen. I should end by making it plain that, despite the impending DDS divestment, the Drilling Services Division is no basket case. On the contrary, it holds some brilliant technology and should have a great future after it has been acquired by Claymore Investments Limited, a company controlled by Graham Burgess, Peter Felter and Julie Cowie, all directors of Sovereign but that is another story. Worth a read, if only to get up to speed. |
Posted at 28/4/2006 00:39 by plainz sky you should put a comment about pearson in the top header so investors can be clear he found and lost a quarter of a billion quid.Soon be at NAV. That's what he always said. And it is. |
Posted at 21/3/2006 17:45 by johnrxx99 Need a bit more activity here. This is what TMI thought in the November issue:-With the oil & gas sector still providing fertile ground for investors, new issue Sovereign Oilfield, a diversified oilfield services business, has clearly picked a good time to float. The company was introduced to AIM by broker Charles Stanley at 140p a share in a placing which raised £4.1m net new money and have since shot up to a 27% premium. Market cap. at today's price is £26m. The most impressive thing about Sovereign is that although only formed two years ago, it has hit the ground running very hard. In that time, management have made four acquisitions, which are forecast to make sales of £29m and a pretax profit of £1.3m in the current year ending 31 March, before rising to nearly £37m and £2m respectively in 2007. The fact that Sovereign paid a grand total of just over £2m for these businesses shows it certainly has an eye for a good deal. The first purchase was Aberdeen-based Prodrill Engineering (57% of forecast sales), which is the second largest provider of senior engineering consultants to the leading lights in the oil & gas industry including BP, ExxonMobil and Total. Prodrill has a database of 18,000 consultants, giving it a market share of 20% and these provide expertise in areas such as drilling engineering and management, production and subsurface engineering, project management and health & safety. With the backdrop of high energy prices, a record number of oil rigs and oil refineries running at full pelt, market conditions could hardly be better. It was not surprising therefore that under Sovereign's ownership, the number of consultants placed has doubled from 56 to 116, with annualised revenue increasing from £7.2m to £13.2m. As nearly two thirds of its placements are on annual contracts, which are often renewed, investors should have some confidence that this growth is sustainable. Aside from the acquisition of a smaller version of Prodrill, Sovereign has made two other significant deals. Larger of the two is Belgium-based Diamant Drilling Services (25% forecast sales), which provides fixed cutter drill bit technology and has quickly built a reputation for stable and durable bits which consistently outperform its rivals. Although its annual sales of around £7m place it among the small fry in this niche, its leading technology, which includes a revolutionary new down-hole drilling data gathering tool, has excited several oil majors and its order book stands at record levels. That just leaves Caledonian Petroleum Services (18% sales), an Aberdeen-based fabrication services business, which makes specialist parts for oil wells, drilling platforms and rigs. Based on pre-float earnings forecasts of 7.7p (13% tax) for this year and 11.2p (20% tax) for 2007, Sovereign trades on a prospective PE of 23.1 falling to 15.9. Not cheap but still worth watching. |
Posted at 15/10/2005 12:35 by johnrxx99 Good rightup in Momentum Investor this morning. It concludes ;"Sovereign trades on a prospective PE of 23.1 falling to 15.9. Not cheap but worth watching." |
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