Amedeo Res Share Discussion Threads

[howdlep] 17/8/2015 15:14

and of course papillon, when pi's arrive, they will have a little information to supplement their own research. Method in the madness, as Mach100 can see into...

[mach100] 06/8/2015 14:40

Papillon, there are probably quite a few lurkers that would like to post but don't have much to go on. This one is either sleeping beauty or else in rigeur mortis. It will fly on good news and I am sure howdlep won't want for company when and if that happens.

[papillon] 06/8/2015 14:03

Looks like you are posting to yourself, howdlep. 5 consecutive posts.

[howdlep] 28/7/2015 15:47

All three trades today are buys.

Slowly but surely....

[howdlep] 27/7/2015 14:01

Launching of Explorer 1

[howdlep] 27/7/2015 13:29

Excluding the top 4 shareholders, that leaves a free float of just 19.24%. No wonder any pickup in volume will move this very quickly indeed:-

Significant Shareholders

Shareholders on the register of shareholders as at 01 July 2015 with a 3% or more interest in the Company’s share capital are detailed below:

Issued ordinary share capital (%)
Qatar Investment Corporation (1) 61.09
Mena Global Investments (1) Limited 9.20
Global Tech Investments 1 PTE Ltd 5.28
Dune Engineering PTE Limited 5.19

(1) Qatar Investment Corporation is a wholly-owned investment vehicle of Mr Ghanim Al Saad, Non-Executive Chairman of the Company.

[howdlep] 27/7/2015 12:27

it is well worth emphasising the company's structure and investments, as there is often confusion re YZJ Offshore and Yangzijiang Shipbuilding. The following is taken from the WH Ireland research on pages 6-7:-

AMEDEO RESOURCES

Strategic review

Amedeo Resources is a resource and energy related infrastructure and asset investment company, with the Qatar Investment Corporation being the majority shareholder. The Group is headed up by Glen Lau as Chief Executive, previously having held senior positions at PPL Shipyard in Singapore, a US$1bn revenue offshore rig producer, part of Sembcorp Marine (listed in Singapore). The first investment has been in YZJ Offshore, which is currently building its first rig at its yard, located 130 kilometres north of Shanghai on the Yangtze river. Amedeo also owns a stake in a small commodities trading business, MGR.
Recent History Looking at the recent history of Amedeo Resources (originally Creon Resources), £12m was raised in June 2012 to fund a strategy of investing in the resources and supporting infrastructure market segments. The largest investor in the fundraise was the Qatar Investment Corporation at a price of 0.5p. Shortly after this, the Group made its first investment in YZJ Offshore, with the current Chief Executive, Glen Lau and Chairman, Ghanim Bin Saad Al Saad being appointed. In December 2012, YZJ Offshore received its first order for a Le Toureau Super 116E design jackup rig worth US$170m (subsequently increased to US$175m).

Fig 4: Timeline

06/12 - £12m capital raised

07/12 - investment in YZJ Offshore

09/12 - Appointment of CEO & Chairman

12/12 - First order received - S116E $175m

04/13 - Acquired 49% of MGR

06/15 - On track to deliver S116E Q4 2015

Source: Amedeo Resources/WH Ireland
In April 2013, Amedeo acquired a 49% stake in MGR Resources for £30,000 plus a 15% coupon convertible loan to MGR of up to US$1.95m for working capital. A further £5.2m in equity was subsequently raised at a price of 1.0p in April 2014, of which £3.3m was used to fully pay up Amedeo’s stake in the YZJ Offshore JV.

Group structure & investments

Amedeo’s investment policy is to invest primarily in the resources and energy related infrastructure sectors worldwide, whether it be a controlling or non-controlling stake and act as an active or a passive investor. Investments may be either quoted or unquoted and maybe in companies, partnerships, joint ventures or direct interests in projects. The structure of Amedeo’s investments needs to be clearly understood, particularly in relation to the YZJ Offshore JV, where Yangzijiang Shipbuilding (SGX:BS6) is the other significant shareholder.
Amedeo holds a 47.5% stake in YZJOE SingCo, a JV established between Amedeo and Yangzijiang Shipbuilding, which in turn owns a 40.0% stake in YZJ Offshore China, providing Amedeo with an indirect 19.0% stake in the yard. Amedeo’s second investment is at 49% stake in MGR Resources, a small physical commodities trader, the aim of which is for the profits due to Amedeo to cover Group overheads.

Fig 5: Investment structure

YZJ Shipbuilding (mkt cap $4.3bn) Amedeo Resources
| | |
YZJ Offshore JV - Singapore (47.5%) MGR Resources (49.0%)
|
YZJ Offshore - China (19.0%)

Source: Amedeo Resources
YZJ Offshore
In July 2012, Amedeo made its first investment, costing an initial £9.6m by taking an original 46.5% stake in YZJ Offshore Engineering Pte Ltd (subsequently full paid up with a further £3.3m investment), which has a 40.0% stake in YZJ Offshore. Amedeo’s partner in this venture is Yangzijiang Shipbuilding, the largest non-state owned shipbuilder in China. YZJ Shipbuilding’s shares are quoted in Singapore and Taiwan, with a market capitalisation of US$4.1bn. YZJ Shipping produces a range of large commercial vessels, such as container ships, bulk carriers and LNG vessels, having gained a reputation for delivering its vessels on time, on budget and strictly to the quality standards set. YZJ Shipping has backed this venture with Amedeo as it looks to expand into adjacent markets, in line with China’s economic strategy to move increasingly up the value chain.
There are currently ten offshore yards in China, including YZJ Offshore’s yard, capable of producing rigs; the other nine are state owned. Rigs built in China to date out of the nine state owned yards have had a number of quality issues. However, the economics of building rigs in China are clearly highly attractive if these quality issues can be addressed. The Chinese Government is firmly behind YZJ Offshore, providing the land on which the yard is located at an attractive rate, in combination with investing in the surrounding infrastructure such as roads.

MGR Resources
The decision to invest in MGR Resources in April 2013, in which Amedeo now holds a 49.0% stake, was taken with a view that dividend payments from MGR to Amedeo would cover the day to day running costs of the company. The business historically focused on ferrous metals and ore into China. With the fall in the price of iron ore, and subsequent fall in brokering margins, MGR has since been exploring opportunities in other areas.

[howdlep] 27/7/2015 11:24

The excellent W.H Ireland research, dated 3 June 2015, is well worth a viewing. Note the 0.75p target, is now 75p, post 100:1 consolidation:-

[davethechef] 22/7/2015 11:22

Thanks to Smith10, LSE, Latest on the Rig

July 2, the Yangtze River as EXPLORER 1 marine construction SUPER 116E jack-up rigs in Taicang base successfully completed leg of close work. The construction of the drilling platform is the first to explore the Yangtze River shipping industry in marine areas, but also for the Yangtze River opened the door to the marine market. SUPER 116E jack-up drilling platform has three leg in the shape of a square truss, 145.553 meters per leg length (including the pile boots), weighs about 1,001 tons (excluding pile shoe). In the form of leg structure, combined with floating crane's lifting capacity, in ensuring the safety of the case, each leg remaining nine total group into three segments, each approximately 30.5 m total group segment, weighing about 215 tons . The method used is then pile then pile of floating state, namely jackup not connected in piles of folded leg work carried out under the platform floating state. Then pile this method is more complex than the traditional pick pile, because the hull is floating, closed process, the force platform will be gradually increased due to the uneven, easily lead platform tilt, affecting close precision, you need real-time monitoring Draft Platform's condition, kept adjusting the ballast, so the platform to maintain balance. Then pile group staff on call 24 hours, shipowners, ship inspection full cooperation to overcome the weather and other unfavorable factors, which lasted 16 days, the successful completion of this important task then pile. This work is the Yangtze River marine team and innovative achievements, but also to meet the Group's cost reduction and conservation, energy conservation ideas, but since the construction of the history of the jack-up platform is leading initiatives

[davethechef] 20/7/2015 13:27

Testing of the Super 116E
hxxp://www.yzjship.com/news_info.asp?id=104

[davethechef] 11/7/2015 16:18

Analyst tipped, with 80p target! A week ago report.

[akbar:] 08/7/2015 07:48

Reach for door buy sav

[papillon] 12/6/2015 00:00

Currently stuck in tight Bollinger Bands and below the Kumo (Ichimoku chart).


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[davethechef] 11/6/2015 18:15

New Website, finally updated, pics of the Rig and looking perkier!(anything was an improvement on that last website!)

hxxp://amedeoresources.com/

[mach100] 11/6/2015 14:29

two trades of 2.2 million shares. might be a day trader exiting or a delayed reported buy. . I did think the reaction to the results were overblown. 1p has to be the target here,

[howdlep] 11/6/2015 13:11

As was stated in the Finals, dated 2 June, progress on new orders has been slower than expected.

However,

"Amedeo is in continuous discussions with respect to obtaining further orders, and some of these discussions are at an advanced stage"

Now this is what speculation of new orders did to the share price on the last occasion:-


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[knicol46] 11/6/2015 12:50

+26% very good
Explorer 1: The Derrick was installed on 11th April. The remaining 9 sections for each leg will be completely installed by mid-June 2015. Completed early?

[howdlep] 11/6/2015 12:09

This will really re rate once the Explorer 1 rig is completed. However, it is good to see the share price moving above the MA50 and hopefully towards the MA200 @ circa 0.50p.

The WH Ireland buy note, with a target of 0.75p and scope for additional raising, is very helpful. As are the major shareholdings which account for 80.76% of the shares, including The Qatar Investment Corporation (61.09%).

Major shareholders




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[oilbuy] 11/6/2015 11:25

Are we ready for lift off

[davethechef] 04/6/2015 19:31

June 04 2015, 2:41pm

The completion of Explorer 1 is the key near term catalyst for Amedeo's shares




Big

Picture

Explorer 1 will build the new yard's reputation and lay the foundation for the future, Lau says




Amedeo Resources (LON:AMED) is approaching a key milestone in the coming months as it prepares to deliver its first oil drilling rig.

Turmoil in crude markets has naturally overshadowed what has otherwise been a key period for Amedeo, which has made significant progress in the past year.

In Tuesday’s results statement the group acknowledged the slowdown in market for new rigs, though it revealed that its Chinese ship building partner has sufficient work for their yard on the banks of the Yantze.

The company at the same time expects demand for rigs to pick up in the medium term.

Chief executive Glen Lau says although Amedeo’s progress has slowed, he expects a recovery and that it will benefit from the upturn.

Operationally, important progress continues towards the completion of Explorer 1, a mobile jack-up rig, which is due during the second half of this year. The vessel was launched into the water this April ahead of its full completion.

“The build of Explorer 1 is to quality and schedule, building the New Yard's reputation and laying firm foundations for the New Yard's future,” Lau added.

John Cummins, analyst at WH Ireland, said the Explorer 1 completion is very much the focus for investors in the short-term.

The analyst, who has set a ‘speculative buy’ recommendation for Amedeo, believes there could be much more to come from the young oil engineering services group even though the market is currently tough.

“Whilst the market backdrop has become more difficult following the decline in the oil price, and this is still a relatively early stage in the group’s development, the medium-term growth potential for Amedeo’s key investment in YZJ Offshore is significant,” Cummings said in a note.

At 0.75p per share WH Ireland’s twelve-month price target suggests some 180% upside to the current price of 0.32p.

That said, Cummings notes that it is a challenge to set a ‘fair value’ for the early stage company and there could be scope to raise the bar further in due course.

“The potential for the group is significant given the backing provided by operating partners, majority shareholder and track record of management.

“However, set against these positives, this remains an early stage investment in a Group and a key investment with a limited track record in an extremely challenging market.”

Amedeo is both well backed, with Qatar’s state investment authority owning 61% of the shares, and at the same time it is partnered with Yangzijiang Shipbuilding (YZJ), a shipbuilder worth US$4bn.

With Yangzijiang Shipbuilding, Amedeo has a 19% stake in YZJ Offshore, which owns the yard in China.

Cummings, in his note, highlights that YZJ is a powerful senior partner. “Even against the current malaise in the oil services sector, we believe that YZJ Offshore has the potential to succeed in its ambition to become a major offshore yard in Asia,” he added.

Moreover, YZJ is able to support the operation in the current market lull and, according to this week’s results, it has stepped in to provide the yard with ‘overspillR17; work, for container ships.

The yard is able to build a range vessels, Lau highlighted, and investors will be hoping that Explorer 1 is the first of many.


Share


































June 04 2015, 2:41pm

The completion of Explorer 1 is the key near term catalyst for Amedeo's shares




Big

Picture

Explorer 1 will build the new yard's reputation and lay the foundation for the future, Lau says




Amedeo Resources (LON:AMED) is approaching a key milestone in the coming months as it prepares to deliver its first oil drilling rig.

Turmoil in crude markets has naturally overshadowed what has otherwise been a key period for Amedeo, which has made significant progress in the past year.

In Tuesday’s results statement the group acknowledged the slowdown in market for new rigs, though it revealed that its Chinese ship building partner has sufficient work for their yard on the banks of the Yantze.

The company at the same time expects demand for rigs to pick up in the medium term.

Chief executive Glen Lau says although Amedeo’s progress has slowed, he expects a recovery and that it will benefit from the upturn.

Operationally, important progress continues towards the completion of Explorer 1, a mobile jack-up rig, which is due during the second half of this year. The vessel was launched into the water this April ahead of its full completion.

“The build of Explorer 1 is to quality and schedule, building the New Yard's reputation and laying firm foundations for the New Yard's future,” Lau added.

John Cummins, analyst at WH Ireland, said the Explorer 1 completion is very much the focus for investors in the short-term.

The analyst, who has set a ‘speculative buy’ recommendation for Amedeo, believes there could be much more to come from the young oil engineering services group even though the market is currently tough.

“Whilst the market backdrop has become more difficult following the decline in the oil price, and this is still a relatively early stage in the group’s development, the medium-term growth potential for Amedeo’s key investment in YZJ Offshore is significant,” Cummings said in a note.

At 0.75p per share WH Ireland’s twelve-month price target suggests some 180% upside to the current price of 0.32p.

That said, Cummings notes that it is a challenge to set a ‘fair value’ for the early stage company and there could be scope to raise the bar further in due course.

“The potential for the group is significant given the backing provided by operating partners, majority shareholder and track record of management.

“However, set against these positives, this remains an early stage investment in a Group and a key investment with a limited track record in an extremely challenging market.”

Amedeo is both well backed, with Qatar’s state investment authority owning 61% of the shares, and at the same time it is partnered with Yangzijiang Shipbuilding (YZJ), a shipbuilder worth US$4bn.

With Yangzijiang Shipbuilding, Amedeo has a 19% stake in YZJ Offshore, which owns the yard in China.

Cummings, in his note, highlights that YZJ is a powerful senior partner. “Even against the current malaise in the oil services sector, we believe that YZJ Offshore has the potential to succeed in its ambition to become a major offshore yard in Asia,” he added.

Moreover, YZJ is able to support the operation in the current market lull and, according to this week’s results, it has stepped in to provide the yard with ‘overspillR17; work, for container ships.

The yard is able to build a range vessels, Lau highlighted, and investors will be hoping that Explorer 1 is the first of many.


Share









Amedeo Resources set for key milestone as first rig nears completion


Share






















June 04 2015, 2:41pm

The completion of Explorer 1 is the key near term catalyst for Amedeo's shares

[davethechef] 04/6/2015 19:27

Recommendation note out today from Proactiveinvestors.com
Mentions very challenging market and early stage caution though, but huge potential

[...]

Taken from above-
Amedeo is both well backed, with Qatar’s state investment authority owning 61% of the shares, and at the same time it is partnered with Yangzijiang Shipbuilding (YZJ), a shipbuilder worth US$4bn.

With Yangzijiang Shipbuilding, Amedeo has a 19% stake in YZJ Offshore, which owns the yard in China.

Cummings, in his note, highlights that YZJ is a powerful senior partner. “Even against the current malaise in the oil services sector, we believe that YZJ Offshore has the potential to succeed in its ambition to become a major offshore yard in Asia,” he added.

[knicol46] 03/6/2015 12:47

WH Ireland has started coverage on oil rig contractor Amedeo (LON:AMED) with a ‘speculative buy’ recommendation and 0.75p share price target. 110% premium to current offer price.

[davethechef] 02/6/2015 15:26

Glen Lau's on his annual holiday now, I've been told; back on the 8th June.

Results seem ok to me, cash is adequate, with continued patience re: further contracts. Positivity over progress in the 'Yard' over adapting to varying work, and the building blocks with greater mention of "overspill from Yangzijiang Shipbuilding" continuing.

In time I guess, we will hear what revenue came from the jack-up rig, though it's all about establishing reputation and seeing through successfully their first contract. C

[davethechef] 02/6/2015 15:26

Glen Lau's on his annual holiday now, I've been told; back on the 8th June.

Results seem ok to me, cash is adequate, with continued patience re: further contracts. Positivity over progress in the 'Yard' over adapting to varying work, and the building blocks with greater mention of "overspill from Yangzijiang Shipbuilding" continuing.

In time I guess, we will hear what revenue came from the jack-up rig, though it's all about establishing reputation and seeing through successfully their first contract. C