Hallin Marine Subsea Share Discussion Threads

[volvo] 17/9/2009 07:38

David Buxton, an analyst at JMFinn Capital Markets Ltd, or FinnCap, said the new contracts have taken Hallin's order book to more than $75 million and boosted what is usually a seasonally quieter final quarter.

FinnCap has a price target of 158 pence with a "buy" rating on the shares.

Evolution Securities Ltd. analyst Keith Morris said the flurry of recent orders supports the company's view that a more robust pattern of demand for subsea services is appearing, which supports Evolution's view that 2010 will bring a return to growth.

Evolution has a "buy" rating on the shares and a price target of 200 pence.

[crawford] 16/9/2009 11:46

I'm a buyer at these levels, bought some early on as I expected a better rise.

[volvo] 16/9/2009 10:23

Times today

Hallin Marine slipped, however, ending the day 12p down at 124½p despite positive notes from a number of brokers

[clancrackan] 16/9/2009 09:43

Very nice, very nice contract with BP imo


HALLIN LANDS CASPIAN SEA DEAL `IN EXCESS OF US $20 MILLION'

16 September 2009

Hallin Marine, the AIM quoted provider of subsea solutions to the oil and
gas industry, is pleased to announce it has been awarded a five year
contract by Dalgidj Private Company ("Dalgidj PC"), for remote operating
vehicle (ROV) drilling support services in the Caspian Sea, off the coast of
Azerbaijan.

The contract is scheduled to commence in late October this year and is in
support of BP's drilling programme from fixed platforms in the Caspian Sea.

The contract is split into two parts. For the first two years Hallin will
provide two of its Quasar Compact ROVs, complete with specialised tooling
and operational personnel, to Dalgidj PC, the Azeri company.

At the end of two years, Hallin will sell the two ROVs at a price already
agreed to Dalgidj PC and continue to give technical and project support from
onshore Baku, Azerbaijan for a further three years.

The total package of work, including the proceeds from the sale of the ROVs,
which at the time of the sale will be five years old, is in excess of US$20
million.

As part of the contract Hallin will design and manufacture specialised ROV
intervention tooling, utilising the in-house design capabilities of its
wholly-owned subsidiaries - Malton based Hallin Robotics Limited and
Prospect Flow Solutions Ltd.

The board believes this contract enhances Hallin's earnings visibility and
is an excellent demonstration of delivering `client solutions' involving the
Company's different divisions.

Hallin's forward order book, including this contract, now stands at a figure
in excess of US$75 million.

Mike Arnold, Hallin West Division's MD, said:

"We are pleased to be awarded this contract in support of BP's drilling
program and to be working with Dalgidj PC, who are a well established
business with a first-class track record.

`We have been working closely with all parties since October of last year to
ensure we have the best structure to ensure the ultimate success for this
project.

`Our innovative solution is a win-win for all parties involved and shows how
Hallin's ability to respond in a flexible and original way to the client's
needs is a significant and clear differentiator.

`The contract, involving as it does, other divisions of the Hallin Group,
fits well with the Company's aim of supplying clients solutions rather than
just contracted services and integrates perfectly with Hallin's stated
policy of continually updating its operational fleet of assets.

[volvo] 16/9/2009 08:43

al always will be the same, as these financial PR companies/nomads are informed of news and then they inform their mates.

[rivaldo] 16/9/2009 08:33

Yesterday's sellers buying back in then? You have to laugh.

[alroyrob] 16/9/2009 08:19

VOLVO - 16 Sep'09 - 07:36 - 2135 of 2135

"fwiw a buyer bought all yesterday sales at 27.5p near the close.Someone knew as always".


Well,...fwiw, I hold a few of Hallins shares but it still really pees me off that there is this "someone" that always buys just before a contract announcement and sells just before the release of the bad news. (as we saw in the run up to the negative TU in July).

Not exactly a level playing field is it ?

[volvo] 16/9/2009 07:36

fwiw a buyer bought all yesterday sales at 27.5p near the close.Someone knew as always.Should move on strongly as the mms have limited stock again.

[volvo] 16/9/2009 07:28

Great new 20m contract, thats 40m on the week! Or 55m in 6 weeks!

The divers are being linned up for more new contracts so news will follow.

The are taking a large market share and either the share will reflect this or they will be bought like STS was.Comparison take out price is over 3 pounds for Hallin.


Hallin Marine undervalued says Evolution
BFN

The purchase of Submersible Technology Services for £16m plus performance consideration based on EBIT by Neptune Marine Services suggests that Hallin Marine shares are relatively cheap, says Evolution Securities.

The Broker observes: " The price of 1.23x sales plus performance payment highlights Hallin's undervaluation on 0.5x sales. With a current forecast 2010 P/E of less than 4x, a third of that of the sector and half their larger peers Subsea 7 and Acergy, this goes to illustrate the undervaluation of Hallin.

[stluke] 16/9/2009 07:15

Well hats off to Hallin what a way to follow up yesterdays results, some good forward earnings visibility there and that was something the doubters mentioned as a reason to bale yesterday, now for some additional work in the 4th quarter and we could be away.

[clancrackan] 15/9/2009 22:14

Well I am a long-term holder Koolio, on the basis of the half year results a rough p/e is 5 and that is attractive.

[koolio] 15/9/2009 16:51

Most of us on this BB are satisfied with the results. Few of us expected more and many (myself included) were prepared for much less of everything.
Even the statement is about as positive as they could push it to be, after the trading statement that was released July 2.
What were people (sellers)expecting???
I'm a happy holder. I still believe that one day HMS will be valued on a realistic rating.
Asset employment is fabulous they are even talking of more vessels & more ROV's.
Increased competition & lower margins are a given, as the world markets slowed at different rates the competitors moved (mobile assets)into markets where there was still work.
I'm shocked and surprised that the share price fell on todays results. I guess it's just that people don't want to hold stocks for a long period, everyone's a trader in an risky market.

[pbracken] 15/9/2009 16:11

By Iain Packham Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--Oil and gas services company Hallin Marine Subsea International (HMS.LN), Tuesday said its first-half 2009 pretax profit fell on increased overhead expenditure, but said there are signs that confidence is returning to its markets.
Hallin cited its forward order book, which currently stands at $55.3 million and slightly up from $53 million reported in March, as a sign that confidence is returning.
However, Hallin warned that if the oil price were to fluctuate this could set back recovery, as maintaining confidence depends on price stability, which creates revenue certainty for operators.
For the half year ended June 30, Hallin reported a pretax profit of $10.1 million, down from GBP13.8 million on revenue slightly higher at $60.27 million, up from GBP59.58 million a year earlier.
The company cited increased overhead expenditure from the acquisition of Prospect Flow Solutions Ltd. in August 2008, for the lower pretax profit
Hallin said margins have come under pressure, but it expects them to be sustainable at the current levels. The group reported a gross margin of 29.1% in the period, down from 31.8% in the first half of 2008.
Evolution Securities analyst Keith Morris said that a more robust pattern of demand and a rise in the order book is encouraging but warned that for Hallin to meet Evo's 2009 forecast, it must win more work in the seasonally weaker fourth quarter.
Morris said that Hallin is an "undervalued play" and it anticipates medium term prospects for a recovery in the subsea market to be good, with expectations of double-digit growth in 2010 and 2011.
Morris has a "buy" rating on the stock with a price target unchanged at 200 pence.
At 1324 GMT, shares were down 10.00 pence, or 7.3%, at 126.50 pence in a slightly higher Alternative Investment Market, up 0.38%.

[clancrackan] 15/9/2009 10:53

Just arrived back, first thoughts are results are better than predicted.

[volvo] 15/9/2009 09:29

hydrus we have all made mistakes and only experience can make up for this.

For example we are seeing a healthy pull back at results today although the results, especially the margin pc, were pretty good.

What next ? I see directors buying and a new buy note from Evolution and further contracts according to the divers I know.

[hydrus] 15/9/2009 09:17

Well I just had a feeling.....Being pretty new to investing I'm still learning about timing and certainly haven't done any 'trading' as yet, rather I buy with the intention of seeing a good profit over the next few months. Maybe that will happen here but I think there are better opportunities elsewhere.

Although my portfolio has done very well over the last few months I make the odd mistake of course and usually it's timing related!! I buy the right shares but then either sell them just before they shoot up or buy them at the top of a peak and then they fall and I bail out due to worrying about losses increasing.

Almost every share I have lost money on has eventually come good but I still am not confident enough to hold on to them if they start falling.

I actually played this one through a spreadbet as have used my CGT tax free allowance this year.

Clearly you have mastered the timing thing! Any advice on how you did this would be appreciated.

[volvo] 15/9/2009 08:57

Why bail out now?

The results are much better than I expected.I have been trading this stock from 104p and made sure I sold whatever I had left before results.

Today I have just bought 20k at 131p.These are a very cheap business.They have cash and a growing order book.A decent company and solid recovery play on a pe of 4 to 5.

[hydrus] 15/9/2009 08:38

I bailed out at a smallish loss here, in medium term this might be a good investment but management comments are just not that reassuring. Maybe they need to be a little more positive in their wording because the results are actually pretty good. I would be suprised to significant upside in the short term but then of course I could be completely wrong and regret selling (happened before and will happen again)

[alroyrob] 15/9/2009 08:19

Didn't like the comments about... "facing increased competition" or that the fluctuations in the price of oil still have the potential to rapidly erode confidence in the industry.. makes it more high risk than before,(imo),so I'm also reducing my holding.
Nevertheless, they did well to produce flat results, all things considered.

[joe say] 15/9/2009 08:11

Norway office closed and exited old vessel - costs being taken in this half.

This together with contract wins means that I view these results quite pleasingly. Gearing is low/cash good etc.

[varies] 15/9/2009 08:06

Results do include $3.3m exceptional gains on sale & leaseback of the Ullswater net of loss on closing Prospect's Norway office.
Taken in administration expenses, presumably, is the penalty of $720,000 paid on an older vessel released back to its owners.
All in all a comforting report but I would expect to see a little profit-taking now. Our P/E for 2009 looks more like 6 than 4 but this is still cheap if profits are expected to rise next year.

[battlebus] 15/9/2009 08:04

Took profits not convinced shares have much higher to go short term.

[rivaldo] 15/9/2009 07:49

Excellent results given that initial trading statement.

12.6p EPS in H1 alone at $1.6 - annualised that's 25.2p EPS for the year, which would thrash current forecasts.

The only caveat is that H2 results depend on certain contracts coming through, but I'm confident enough about HMS' quality to believe this will come through. Even if they don't, HMS should have more than enough in reserve to meet forecasts of 20p-21p EPS.