Capital Share Discussion Threads

[twistednik] 17/8/2016 11:52

finncap update

hxxps://www.research-tree.com/companies/uk/support-services/capital-drilling-ltd/research/interim-results-new-contracts-offer-a-stronger-h2/13199

[twistednik] 17/8/2016 11:50

Great result and good momentum off the back of mining upturn. Progressive dividend policy is also positive.

I think they're very well placed to continue benefiting and a lot of further upside to go IMHO.

[spob] 17/8/2016 11:31

Thanks for the info.

It's very quiet on this board.

Just the way i like it :)

[valhamos] 17/8/2016 09:27

Revenue increased by 5% over the previous 6 months (H2 2015) and Jamie Boyton stated on the conference call that H2 revenue is forecast to be 12% higher than H1.

Utilsation improved to 40% but the first half was really a tale of 2 quarters with very strong momentum in the second quarter.

8 contract wins in 2016 so far and looking to increase geographical spread particularly West Africa.

[valhamos] 17/8/2016 08:59

CAPD is sounding increasingly confident that the market has turned and that there will be greater exploration and delineation activity to add to the existing production contracts that currently underpin revenue. Nice increase in dividend.

[deanowls] 07/7/2016 09:49

No debt, I believe share price covered by Nav near enough also! Divi to be raised?

[thorpematt] 07/7/2016 08:43

Yep, very nice.

[valhamos] 07/7/2016 08:38

Long way to go here with "what appears to be a sustainable upswing in our core markets" with Q2 revenue up 15% on previous year and 16% on Q1.

Over 10% uplift in revenue guidance for 2016 following the award of a four rig contract.

All the while the dividend yield (dividend paid in US dollars) is increasing in sterling terms.

[firtashia] 04/7/2016 11:28

I understand why, now. They wanted to fill an order and were short of stock, large volume subsequently been bought today. Price seems to be moving up now and I can get quotes for over £1k's worth. Sorry to waffle on, but bored at work, this is far more exciting.

[firtashia] 04/7/2016 10:21

Not easy to buy these today. Couldnt get more than £800's worth in one go.

[wjccghcc] 18/5/2016 09:33

Agreed. Got quite a few of these. Although there is still the tax dispute outstanding.

[shaunstar] 18/5/2016 09:22

Just bought more - not often you find a 'safe' potential multibagger

[gleach23] 18/5/2016 09:13

Through the recent high now on very modest volume - looks quite exciting on 5 yr chart :)

[valhamos] 18/5/2016 08:23

From today's update:

"Of particular encouragement was the award of multiple exploration contracts during the period, indicating early signs of a measured industry recovery. It is also important to note that the Company was awarded the majority of the exploration contracts it tendered for."

Looks well positioned for further recovery in the business and the share price.

[valhamos] 17/3/2016 17:49

Because the loss for 2015 is accounted for by one-off items (stock write-downs, tax disputes additional provision etc), it shouldn't be too difficult to achieve a profit this year based on current conditions. I think we have reached the bottom of the commodity price slump so any increase in exploration and delineation drilling is going to see a dramatic improvement on top of that. In the meantime a 8% dividend yield at today's closing price looks very attractive.

[proactivest] 17/3/2016 15:38

Video interview with Jamie Boyton



Jamie Boyton, chairman of Capital Drilling Ltd (LON:CAPD), says the company’s 32% rise in its final dividend for the year is “a very strong message”.
He adds that “whilst the reported numbers are looking weak, the underlying cash flow is exceptionally strong and the balance sheet is strong,” which is allowing the company to be able to make these pay-outs to shareholders.
Capital Drilling reported revenue fell for the third year in a row due to the on-going slump in global commodity markets, but it also revealed that operating cash flow was higher for the third consecutive year, while the company also achieved the highest positive free cash flow in its history.

[rhomboid] 17/3/2016 08:35

What a great little business this is , in cashflow terms especially so.

My favourite aspect of the results was a forecasted return to profitability and growth this year and the very handy dividend increase.

[valhamos] 17/3/2016 08:32

Good share price reaction to the results and dividend increase.

[troc1958] 26/10/2015 17:00

Interesting results! Impressed that they were able to reduce their debt during very difficult trading conditions - a remarkable achievement considering their drill rig utilisation is only 34%. To be cash positive and pay a good dividend (currently over 7% at share price of 24p) is quite unique in the current difficult mining service industry. Well worth putting CAPD onto one's watch list (as I have done) as it could become a nice little earner if the industry starts to improve. Still very high risk, but now is the time to look for "little gems" in the beaten up mining industry. This could be one of them.

[deanowls] 26/10/2015 08:01

Read quiet well, moving in the right direction and a 7-8% at this year divi whilst you wait. Any upturn (if it happens) should require minimal capex with the amount of rigs they have and have decent contracts currently providing a base. I would expect the dividend to increase at year end with them now cash positive with a Q4 probably showing further progress(with us now a month into it and I would imagine next two months planned for).

[pugugly] 26/10/2015 07:37

Q3 trading update out but nothing on tax overhang - imo investment at this stage as suggested by sailing john above could be medium term dead money at best.