Tekmar Share Discussion Threads

[jonwig] 20/7/2019 09:58

I thought it might be worth looking at this share price chart (not hard to guess the company):

[jonwig] 19/7/2019 05:49

Thanks ram. As mentioned in #136, US has huge renewables potential. Trump's 'beaootiful coal' is an irrelevance.

[rambutan2] 19/7/2019 01:15

Potential sales:

[thomshrike] 17/7/2019 10:15

That's too far for me, so I look forward to read your thoughts!

[jonwig] 17/7/2019 10:10

That'll be two shareholders, then, and twenty men in suits!

[mwainw1973] 17/7/2019 09:46

Ten minutes for me in fact I can see their offices from my workplace

[jonwig] 17/7/2019 09:22

Annual Report:



AGM: 21 August at their HQ. About 90 minutes drive for me, so I'll try to get there.

[mwainw1973] 01/7/2019 22:24

That they are ;-)

[thomshrike] 01/7/2019 21:41

Tekmar is an asset-light business. They are essentially an engineering and assembly business. Capacity is not an issue to them at the moment: they hired a number of engineers in the last FY and currently have enough spare capacity to even tackle the oil and gas business. If they would need more capacity, they have more than enough net cash on the BS to pay for the capex. They definitely do not need to raise equity.
A roadshow at this time is business as usual: meeting institutional investors every semester after coming out with numbers.

[jonwig] 01/7/2019 20:28

ram - in fact, why debt? Equity would be more fitting, no? When I hear of a company "roadshow" I usually associate it with a softening-up process ahead of a fundraising.

Mere speculation, of course!...

[rambutan2] 01/7/2019 20:25

Thanks jonwig. Was unable to post.

[rambutan2] 01/7/2019 20:22

With the mkt opp growing at pace, perhaps some friendly ie non bank debt would be useful? Whatever, BGF are not just opportune mkt buyers, but growth backers.

[jonwig] 01/7/2019 20:08

The Economist this week has an article about renewables in the USA. Despite Trump's best efforts, progress is on a par with most other developed nations, with the most populous states in the vanguard.

Separately, I read that offshore development is hampered by poor port facilities for handling turbines on the E Coast. This is just published:



And this is the FT cited by rambutan:

Donald Trump expends a lot of energy complaining about renewable wind power. The US president has called wind farms ugly, unreliable and has linked the noise they make to cancer.

He should save his breath. Renewable energy in the US has far too much momentum to be halted by barbed quips. Wind power already accounted for nearly 7 per cent of all US electricity generation last year, according to the US Energy Information Agency. The next phase of growth will come from offshore wind farms.

That is good news for Danish wind farm specialist Orsted. Formerly known as Danish Oil and Natural Gas, the group has shed much of its fossil fuels related businesses in recent years. It focuses on financing and building ever larger wind turbine arrays. Its next growth area is the nascent US offshore market. After buying Deepwater Wind, a US offshore wind developer, last year it has won new contracts. Most recently, New Jersey selected Orsted to develop a 1,100 megawatt offshore project — enough to power half a million homes.

This follows another even larger Orsted-partnered project off Massachusetts and Rhode Island, due to begin operations in the next five years. There will be more to come. Although US installed wind generation capacity has grown at a compound annual rate of over 9 per cent since 2013, almost all of that sits onshore. Texas is one of the largest wind generators.

Offshore projects could dot the waters on both of America’s coasts in the decades ahead — potentially providing another 2,000 gigawatts (2m megawatts), according to the US Department of Energy.

Partly because of its expansion and partly due to the scarcity of rivals in pure offshore wind power, Orsted’s valuation has soared over the past year. Its enterprise value to forward ebitda is 14 times, half again as much as rival EDP Renováveis, which has a similar portfolio.

Increasingly oil companies with stronger balance sheets, such as Norway’s Equinor and Shell Energy, part of Royal Dutch Shell, have begun to compete in offshore tenders.

All lost out to Orsted on the New Jersey project. They should not be discouraged. Losing one contract will not come as such as a blow given the size of potential deals from US offshore wind in the years to come.

[rambutan2] 01/7/2019 19:45

Likewise am surprised to see BGF buying. Hmmm.

LEX in FT bullish on offshore US wind today.

[thomshrike] 01/7/2019 19:37

@jonwig: no no, BGF buys in the market like everyone else. No dilution here. I am curious to see how much more they will buy.
@mwainw: Lol, definitely not.

[mwainw1973] 01/7/2019 19:20

Very civilised of you

[jonwig] 01/7/2019 18:59

BGF have increased again to 5.09% - header updated.

I'd have thought, after thom's comment, that they would take new shares in companies rather than buy in market?

@ mwainw - don't ask, don't be nosey!

[mwainw1973] 01/7/2019 18:03

So you work for Tekmar?

[thomshrike] 01/7/2019 17:31

In case you have not had the opportunity to meet him, I can tell you he is quite impressive. Very articulate and dynamic. And certainly very mature for his age.

[jonwig] 01/7/2019 16:40

Found it, thanks!

The one with no hair is the youngest (and the boss).

[imperial3] 01/7/2019 15:19

From their website."FY 19 Roadshow Presentation Document June 2019." Well worth a read.Impressive and encouraging for the future.

[thomshrike] 28/6/2019 08:42

jonwig: exactly. In fact, not only it is a low tech product, but also they minimize the work that they do in the territory (only a final assembly, for local content purposes).

[jonwig] 28/6/2019 08:28

The China one wasjust a bit of a concern - that they'd have to share their technology. But if, as you say, these are low-tech products, it will matter less.

[thomshrike] 28/6/2019 08:21

A few comments heard from people that had the opportunity to meet mgmt this week:
- yes, Tekmar can participate in bids anywhere in the world. Those recently announced projects in the US and Japan will be won by them.
- they now have a subsidiary in China, that can be used to sell products there too. These are typically lower technology products. They have good relationships with at least 3 big local operators.
- India and Australia could quickly become large offshore wind territories. Not included in anyone's estimates.
- the o&g capex cycle is booming and their main concern is in fact to choose projects that are sustainable for the LT and do not take up too much capacity. Their level of penetration is still very low and they would expect to grow even in a downward cycle.

[thomshrike] 26/6/2019 16:00

I also saw BGF as a positive surprise. They are typically more early stage (see the portfolio on their website), which to me gives a good indication of the pace of growth that they expect for Tekmar.