Kbc Adv.Tech. Share Discussion Threads

[apad] 23/9/2014 09:51

Paul Scott comments worth a read.
apad

[apad] 23/9/2014 09:28

Agree with SG, an order that gives no-one-ever-got-fired-for-buying-IBM credibility is required.
I was disappointed with the vagueness of the language cloud around the word "contracts".
apad

[hannahh] 23/9/2014 09:05

Equity Development are also hosting a webinar with the management on Thursday at 1.15pm, you can register here

[dasv] 23/9/2014 08:54

NB note KBC paid for this research from equity development

"Strong secular growth in spending on Oil & Gas infrastructure should underpin prospects at KBC Advanced Technologies (KBC), a specialist software developer and consultancy for the hydrocarbon industry. Its proprietary IT applications help maximise client profits and capital returns, by simulating complex processes across the whole gamut of operations from 'reservoir to refinery' often saving customers tens of $millions.


Today's H1 results show sales up 9% to £34.4m, driven by a rebound in Consultancy (+17% to £26m); partly offset by tough comparatives and contract timing in Technology (-13% to £8.4m). Adjusted EBITA fell -3% to £4.4m due largely to a -£0.7m forex hit (£ appreciation vs $), but was up an estimated 13% in constant currency terms.


With regards to the outlook, H2 has "started well", and the company is on track to hit FY14 expectations. Momentum continues with the award of a "number of significant software contracts" since June.


We think that KBC trades at an unwarranted 15% to 40% discount to its peers in both the small cap software and oilfield services. Therefore we initiate coverage with a target price of 162p/share versus 106p yesterday."

[simon gordon] 23/9/2014 08:12

Hopefully, over the next 15 months they'll get lift off in Mid and Upstream.

Some positive rhetoric (propaganda) for the coming future:

"The second half of 2014 has started well and the Group has been awarded a number of significant software contracts since June. The Consulting pipeline for larger projects is growing and recent contract wins in South America, the Middle East and Asia provide good prospects for the future."

"Investment in senior staff in high growth geomarkets during late 2013 and the first half of 2014 is starting to deliver considerable potential work for the rest of 2014 and 2015. In Technology, clients are demonstrating their commitment to KBC's products with a good level of further software orders and considerable interest in KBC's growing upstream software portfolio."

"The combination of KBC's process simulation technology, its simulation of the chemistry of oil and gas in the Infochem products, and the new hydraulics offering creates a unique platform for clients in the upstream oil and gas market. The combination, which enables KBC now to offer profit improvement and business transformation programmes, underpinned by technology, across the full hydrocarbon value chain, has been well received by the market...."

"The second half of 2014 has started well and the Group has been awarded a number of significant software contracts since June, including a major five-year renewal of Petro-SIM for a South American oil and gas major. The combination of Petro-SIM V6, to be launched in late 2014, the continued success of the Infochem Multiflash™ software and the new product, Maximus™, developed by FEESA puts KBC in a very strong position to exploit the market's need for operational improvement in upstream production. The Consulting pipeline for larger projects is growing and recent contract wins in South America, the Middle East and Asia provide good prospects for the future. Our North American business has returned to growth and is looking forward with renewed optimism."

-----

Unless they land a headline grabbing order the share will probably be becalmed until the late January trading update.

[gswredland] 20/9/2014 07:29

When are results please guys?

[simon gordon] 17/9/2014 13:28

Wh1spa,

Cheers, forgot about that.

[wh1spa] 17/9/2014 13:06

As we are in the closed period Kestrel can't pick any up as they have a non exec on the board.

[simon gordon] 17/9/2014 12:27

90p is the 50% retracement from the Q4 2012 rally - red line:



Volume has been light on this fall, looks like Kestrel have stopped picking up loose stock.

Net of cash I think it is on about 8.9x 2014.

[simon gordon] 15/9/2014 13:15

They've signed with Equity Development and are you doing a webinar on 25th September:

[simon gordon] 14/9/2014 20:00

Zawya - 14/9/14:

Kuwait to merge two mega oil projects

Kuwait plans to merge its USD-multi-billion Al Zour refinery and the planned nearby petrochemical complex into one project, according to a media report on Sunday.

"KBC Advanced Technologies has been appointed as a technical consultant to study the merging of the petrochemical complex and the Al Zour refinery into one integrated refining complex," Khaled Al Asousi, Deputy CEO for Support Services at the state-owned Kuwait National Petroleum Company (KNPC) told the Arabic daily Alanba.

Asousi said KNPC signed the contract with UK's KBC on Tuesday and confirmed earlier reports that bids for three Al Zour packages have been extended to mid-January, 2015.

He said two other bids for marine work and tanks would also be closed in October, adding that work on the refinery is progressing on schedule.

He did not mention investments involved in Al Zour and the petrochemical complex but another Arabic daily Al Rai recently quoted KNPC sources as saying the two projects could cost around USD 28 billion (KWD 8 billion).

The 615,000-bpd Al Zour refinery in south Kuwait and the development of the existing two main refineries will double Kuwait's refining output to nearly 1.4 million bpd within four years.

[simon gordon] 09/9/2014 08:34

Think it will be business as usual in Russia.

Many smallies having a pretty turgid year after a great 2013.

[gargoyle2] 09/9/2014 08:15

Any reason for the drop here? We've had a 'meeting expectations' update pretty recently, weakening pound should be helping. Russia?

[gargoyle2] 31/8/2014 19:33

Have i missed an announcement somewhere, or are we still without a CFO here? If so, it would be good to hear an update on that when the interims are released in about 3 weeks time.

[simon gordon] 27/8/2014 11:19

Http://www.bnamericas.com/news/petrochemicals/multinationals-eye-bolivia-petchem-call


Multinationals eye Bolivia petchem call

By Business News Americas staff reporter - Tuesday, August 26,
2014

Five international firms have expressed interest in a Bolivian call
to provide strategic support services to advance development of
propylene and polypropylene plants.

Information from state hydrocarbons company YPFB reveals the
potential bidders are IHS Chemical, KBC Advanced Technologies,
Nexant, Tecnimont and Wood Group Mustang Engineering.

The work will help the NOC select the final technologies and
prepare technical documents for the next phase, which entails
extended basic engineering.

Offers for the 120 day contract are due September 3.

[gargoyle2] 26/8/2014 19:41

Thanks for sharing that, Simon.

[simon gordon] 26/8/2014 16:35

My question to KBC:

"What is the value of the total addressable market for KBC’s
suite of software products that now include Multiflash and
Maximus?"

-

KBC's answer:

"...North of £700m addressable market but with some big,
sophisticated competitors."