Renewi Share Discussion Threads

[fairways and greens] 07/3/2023 08:24

Thanks for debt info DP

[count dis] 07/3/2023 05:29

Edison writes the following about the EC ruling:

The EC has completed its investigation into alleged state aid relating to the tax rate applied to certain recycled waste materials that were added to the now closed landfill site in Mont-Saint-Guibert, Belgium, to contour the site for closure. The EC determined that the Walloon Region did not provide state aid to Renewi. This will enable Renewi to release the €15m provision that it had made in its balance sheet.
This is expected to be taken as an exceptional in the current financial year. The full potential cost was put at €58m plus interest, suggesting over €63m, further highlighting the importance of the announcement. The key ongoing legacy issues cover the UK municipal public-private partnerships contracts, which have all been provided for.

The next scheduled event is the year-end trading update on 4 April.


My view . . . Very positive news.

[gregsc] 06/3/2023 08:54

Extra €15m in the kitty.

[dplewis1] 06/3/2023 08:33

Positive news on the landfill case this morning

[dplewis1] 27/2/2023 14:03

According to Eikon they have a €75m 3.0% fixed senior secured bond maturing 19/7/24 (€66m outstanding) as well as a €125m 3.0% fixed maturing 23/7/27 (€110m outstanding). Also a term loan and revolver due 18/5/23

[sausage7] 24/2/2023 15:43

So interesting news from the GLG camp. On the 22nd February they reduced their RWI short by 10bps. Has the short tide turned?

[fairways and greens] 22/2/2023 21:28

Hi all, does anyone know when the next debt/bonds maturing needs (and £'s) to be refinaced by? Thanks

[dplewis1] 15/2/2023 14:39

Horrible short position from GLG, just keeps going up in their face

[outsizeclothes.com] 06/2/2023 10:03

GLG are probably hoping that a bearish announcement from the ECB at the next meeting will trigger a sell off in any and all European Companies with high levels of debt.
I think that they've miscalculated the ease at which Renewi can get "green bonds" away at reasonably low interest, in reasonably high amounts, to service their debts on a rolling basis going forward.

[sausage7] 06/2/2023 09:12

For reasons known only to them, GLG increased marginally their RWI short on the 2nd Feb from 1.96% to 2.05% The Tellworth Investments short of 0.64% remains unchanged.

[outsizeclothes.com] 03/2/2023 23:53

I'll repeat what I said on 13th Jan.
"Having beaten 620 on the upside, the next Chart resistance zone is 680/720, but with potential to pull back to 'channel bottom', currently at 620.
Through 720 and it's 770.
Followed by 830, and then 855 previous top."
A strong end of week finish and I'll say we're now approaching the first 'resistance zone'. Channel bottom is now 635/640.

[wad collector] 31/1/2023 12:16

Don't like seeing the word "challenging" in the TU , but the rest of it will do. Hold and hope to prosper....

[count dis] 31/1/2023 08:53

otp.tools.investis.com/clients/uk/ren...

Renewi, the leading European waste-to-product business, announces its trading update for the third quarter ended 31 December 2022.

Otto de Bont, Chief Executive Officer, said:

“We are on track to meet expectations[1] for the full year. We are continuing to execute our strategic agenda and to build on our leading position as a manufacturer of low carbon secondary materials. In Q3 we have completed the construction of our advanced sorting facility in Ghent and delivered important milestones in the construction of our facilities in Puurs and Acht.

“Over the near term we will be navigating inflation, price increases and volume pressure, but we remain cautiously optimistic and our expectations for the Group’s full year performance remain unchanged.”

Trading and cash performance

Trading in the Commercial Waste Division in Q3 was in line with our expectations. Volumes remained soft compared to last year but stabilised versus earlier quarters. Cost increases are largely being mitigated by strong price management combined with cost controls. Recyclate prices stabilised during Q3, with wood trading at record highs and paper and plastic at significantly lower levels than in previous quarters, but above historic averages.

The Mineralz & Water Division performance in Q3 was supported by good performance on the waterside whilst making gradual progress on certification and future outlets for gravel, sand and filler.

Within the Specialities Division, Coolrec and Maltha continued their improved performance, and the UK Municipal business was stable. Coolrec has been awarded significantly higher volumes by the Dutch collection scheme in Q3, underpinning volume and revenue growth for the coming years.

Good ongoing progress on the investments pipeline continued in the third quarter, with the Ghent facility entering into commissioning and activity ramping up at both Puurs and Acht sites, which are well on track.

Core net debt at 31 December 2022 decreased to €372m (September 2022: €388m), driven by disciplined working capital management.

Outlook

Although we continue to expect a challenging macroeconomic outlook during 2023, we remain committed to executing our growth agenda, investing in advanced sorting and treatment capacity to produce more and higher quality low carbon secondary materials, and to building further on our leading position in our home markets.

In the medium-term we remain on track to deliver the €60m from the identified value drivers and will continue to benefit from the Group’s proven resilience.

In the longer-term we remain confident that, with regulation driving increasing demand for recycled materials, Renewi is well positioned for growth in its markets and to serve customers profitably as the circular economy develops and the market for low carbon secondary materials evolves.

[theolonghair] 17/1/2023 07:26

@ Spypat,
Fair value moved up to 725gbx.
€8.73.

It moves in correlation with the
current share price.

BTW on the Site at Wateringen they recently installed two XRF non-ferro metal detectors for even better separation in bosemas waste.

[outsizeclothes.com] 13/1/2023 12:34

Having beaten 620 on the upside, the next Chart resistance zone is 680/720, but with potential to pull back to 'channel bottom', currently at 620.
Through 720 and it's 770.
Followed by 830, and then 855 previous top.

[spypat] 11/1/2023 16:48

Estimating The Fair Value Of Renewi plc (LON:RWI)
Simply Wall St
Wed, January 11, 2023 at 7:27 AM GMT


Spoiler alert:
RWI Fair Value: 694p

[sausage7] 11/1/2023 15:23

Thanks for the heads up Count! Let’s hope the price can hold here for the moment. Thanks also Long Hair for the note.

[count dis] 11/1/2023 14:18

ABN Amro ODDO lifts Renewi PT to €10.5 from €8 on less than expected decline of recyclate prices and potential earlier recovery of economy.

[theolonghair] 11/1/2023 13:17

Hi sausage7, I can't give any reason what causes the upward move. Because I haven't seen into it nor did any investigation. Stobbart still is our main guy. But I do reckon it is a trend since 3 month past from October it is pretty upwards.

[sausage7] 11/1/2023 11:05

Any news out today given the move? Long Hair, something going on in Amsterdam ?

[outsizeclothes.com] 05/1/2023 11:50

Takeover speculation, based on the Biffa bid and industry activity, pushed us to £8+.
But an £8+ shareprice is increasingly been justified by Company performance.
So we will get back there on value fundamentals alone.
Any continued prolonged period under £7 / €8 imho would only lead to private equity chancing a [low-ball] £9 / €10 bid.

[sausage7] 05/1/2023 08:11

Nice one Greg, great spot and an encouraging piece of research. I wonder if GLG have seen a copy of this report….

[gregsc] 04/1/2023 15:25

Report from Dutch analyst Peter Paul de Vries
Apologies for poor translation.

Sustainable Renewi deserves a re-rating.

Renewi remains on De Vries' buying list. "The company is well managed, there is plenty of potential for profit growth and the valuation is still very low. The long-term shareholder simply holds on to this share. Earnings per share should amount to 80 to 90 euro cents, which justifies a price of € 10. In the long term, the share can be significantly higher.""Renewi indeed delivered better results. The recycling group raised its forecast twice last year and ultimately earned 98 cents per share, much more than the 60 cents analysts had in mind."

Nevertheless, the price fell from €8.93 to €6.80: a decrease of 24%. "Renewi goes through the classic process of the turnaround, from excessive pessimism (a share price at €2) step by step to a normal valuation in line with the market," says De Vries. According to him, that would already justify a price of more than € 10.

"In the third phase, a premium is appropriate for the sustainable nature of the activities. Recycling makes an enormous contribution to a sustainable economy and Renewi is already able to reuse two-thirds of the waste. With a sustainability premium, Renewi's course can be extended over a stand at €15 to €20 for a few years."

[sausage7] 31/12/2022 09:25

Wishing all the Renewi shareholders a happier new year, let’s hope it’s one of significant progress for the group. I have enjoyed the collective inputs during 2022.

[george stobart] 08/12/2022 10:52

RWI announced via social media a €40 million loan agreement provided by the European Investment Bank (EIB).

No details on financing costs but these funds cover most part of the remaining of the €100 million growth capex as some of it was already funded through retained earnings and no dividend payout.

Yield on Renewi's traded bond 2024 (2.7%) declined on news and trades at an all time low suggesting that credit investors are relaxed about RWI prospects.