Thalassa Share Discussion Threads

[jmf69] 17/12/2016 10:49

Are we expecting another update either before year end or in January once the board have a clearer idea of wgp costs.

[catswhiskas] 16/12/2016 09:38

Going back to 40p as sure as day follows night .

[kannerwas] 16/12/2016 09:34

Re Rivaldo's post 3562 and ambiguity in company statements.

I am pretty sure that the 2.3m of data sales referred to in today's statements is in 2016, not 2017. The company has already stated that total WGP revenue for 2016 will be 13.9m, i.e. 11.6m of survey business and 2.3m of data sales.

So, they are forecasting turnover of $15m from their normal survey activities in 2017, up from $11.6m. They cannot possibly know yet whether they will have any late data sales in 2017.

[cockerhoop] 16/12/2016 09:19

Not quite sure why 3 RNS's required when 1 would have done though?

Maybe using their allocation before YE :-)

[masurenguy] 16/12/2016 09:13

Great update !

[jmf69] 16/12/2016 08:39

How can this be down on that news?

[columbarius] 16/12/2016 08:30

CatsWhiskas filtered. Clueless.

[jmf69] 16/12/2016 08:06

Looking good. Any new contracts will add to the revenue guidance. Happy to hold

[rcturner2] 16/12/2016 07:59

Cats, did you actually read the rns? The revenue stated is already contracted for 2017 so anything else they can win on top is a bonus. They have a 40% increase ALREADY CONTRACTED.

[catswhiskas] 16/12/2016 07:51

Recovery in the oil price won't filter through to capex until 2018 at the earliest 2017 will still be hard work for companies like Thalassa .

[rcturner2] 16/12/2016 07:44

Excellent news, a very strong play on the recovery in the oil services sector.

[rivaldo] 16/12/2016 07:39

Just to add that WH Ireland's most recent forecast for 2017 revenues is $12.5m, so the $17.3m per today's RNS is some 40% above forecasts.

[catswhiskas] 16/12/2016 07:35

Makes up for the 20% hit on the lsr shares soukup overpaid for with shareholders money ! When everything is taken into consideration this isn't as undervalued as some would have you believe .

[philjeans] 16/12/2016 07:26

Excellent!

Happy to hold here and will be adding.

[rivaldo] 16/12/2016 07:21

This sounds like very good news....and it's "currently contracted", so presumably any future wins will simply add to the increase:



"2017 Revenue outlook for WGP Group Ltd

The Board of Thalassa announces that it estimates 2017 operational revenues (currently contracted) will increase by approximately 29% to circa US$15 million compared to estimated 2016 operational revenues of $11.6 million, before taking into account $2.3 million in data sales."

[jmf69] 15/12/2016 17:41

Maybe find out tomorrow morning

[philjeans] 15/12/2016 16:58

Very odd - bad news coming perchance?

[jmf69] 15/12/2016 16:38

Or tomorrow morning?

[cockerhoop] 15/12/2016 16:33

After hours RNS?

[rcturner2] 15/12/2016 13:43

I agree with a lot of that. The market cap is £10m and that is not much given the assets involved.

[philjeans] 15/12/2016 12:57

From Investors Champion today;

THAL is a holding company with two operating subsidiaries in the Energy Services sector and 2 passive investments, one of which is significant relative to its balance sheet. We have followed this company through its highs and lows over the past few years and a full history of our research is available from the link here.
Thalassaâ̈́4;™s operating subsidiaries are WGP Group (WGPG) and Autonomous Robotics (‘;ARâ€482;).
WGPG is a marine geophysical services company which offers bespoke project management and geophysical services throughout the global upstream oil and gas industry. WGPG’s principal focus over the past few years has been the provision of permanent reservoir monitoring (‘;PRM’) services, in respect of which it has carved a strong niche. PRM has proved more resilient than other oil services areas in the current oil price sell-off and WGPG benefits from 2 sizeable long term PRM contracts with oil majors Statoil and ConocoPhillips.

AR is an early stage ‘Autonomous Underwater Vehiclesâ̈́4;™ research and development company which is developing a Flying Nodes system for deep water Ocean Bottom Nodes seismic surveys. The Flying Nodes system concept been shown through survey modelling to offer a significant cost saving for Ocean Bottom Seismic (OBS) deep water surveys compared with alternative node OBS solutions. Applications for this could also extend to Defence and Security.
AR will require significant new funding over the coming years and seems a possible ‘spin-offâ̈́4;™ candidate.
Passive Investments
The Group had, until recently, net cash broadly equivalent to its market cap but has since used some of this in acquiring a 23% equity stake in The Local Shopping REIT plc (“;LSRâ€), a property investment trust in which Thalassa is endeavouring to improve and accelerate returns to shareholders.
LSR is currently in wind down and the Net Asset Value (NAV) of this business at 31st March 2016 was £35.3m or 43p per share compared with the current share price of 28p per share.
Thalassa could be termed both a recovery and deep value play, with a twist,with considerable opportunities across multiple fronts.
Thalassa net assets at 30 June 2016 (after significant impairment of seismic equipment) amounted to US$26.4m resulting in net assets per share of US$1.17 (£0.93) versus a current share price of only 47p. Cash as at 30 June 2016 was US$13.2m (£10.5m) some of which has been invested in shares of The Local Shopping REIT (LSR), representing 23.14% of share capital of this business.
The current market capitalisation of approximately £10.3m therefore implies zero value for WGP and ARL. The former has 2 very valuable long terms contracts and is well placed to being a long-term survivor in the oil and gas space, where PRM will be increasingly required. ARL has significant potential but requires further funding to commercialisation, which is being sought from oil majors. There are evident possibilities to split these out and secure greater value.
A November 2016 trading update confirmed that WGPG results for the year ended 31 December 2016 would exceed previous estimates indicated by the Company which were for revenue and pre-tax profit of US$10.5m and US$1.1m, respectively.
The oil and gas sector has been in the doldrums for several years but the Group was quick to cut costs and conserve cash, a discipline that many others didn’t follow.
The Chairman, who enjoys the odd battle, has communicated opportunities to extract more value from the wind down (or other) of LSR.
Unlike many if its seismic competitors which are burdened due to excessive debt and over capacity, WGP is more asset light by comparison and importantly debt free. Accordingly, the Group is well placed to ride out the current storm.
The latest news of a contract from ConocoPhillips Skandinavia AS to acquire seismic data sets on the Eldfisk field in the North Sea in 2017 overs encouragement for 2017. The duration of the 2017 shoot is estimated at approximately 2 months and is expected to commence during Q2.

[cockerhoop] 15/12/2016 11:14

I imagine the board meeting won't be too early........a couple of drives for the pheasant shooters before retiring to the Grade 2 listed boardroom for the Port and the meeting :-)

[columbarius] 15/12/2016 10:09

CatsWhiskas
15 Dec '16 - 07:37 - 3537 of 3549 1 0

What a strange rns revising trading outlook market won't like that generates uncertainty we don't know if it's good or bad the 2 month New contract won't make any material difference and there have been no significant contract wins for a while with investment dried up I fear this could be negative .

[pj 1] 15/12/2016 09:58

columbarius15 Dec '16 - 09:51 - 3547 of 3548 0 0
If you had bought shares in Duncan Soukup ten years ago you'd be happy.

I wouldn't have bought shares in Duncan Soukup, that was my point. I had nice banked profits from THAL some while ago to be fair. I don't understand what is happening here though