Posted by Malcolm Graham-Wood - Malcy's Blog
Well, it doesnt get much better than this at the moment and unless the EIA stats rain on oil's current parade tonight then all should remain in an upward trajectory. Yesterday saw both the Russians and the Saudis giving genuinely positive information out. The Russian Oil Minister called for an extension to the agreement but also said that his country were now at 250/- b/d down in the quest for a fall of 300/- b/d. The Saudi Minister also called for a rollover of quotas but also said that compliance was now 104% which should start to make an impact on the stock levels.
The inventory stats from the API also helped after hours, crude drew by 1.3m barrels when analysts had been guessing at a rise but products also helped, gasoline drew 3.7m against a forecast of -1.7m and distillates drew 1.6m against expectations of 885/-.
Results today from PVR and a conference call with a new presentation added a bit but as ever with financial results there isnt much to add to current sum knowledge. The company is cashed up from the raise and ready to drill Druid/Drombeg in June having farmed out 30% to Cairn recently. Seismic this summer on Dunquin may prove interesting and the data room is still very busy we hear but none of the old favourites such as Barryroe or Spanish Point have yet been farmed-out.
AGM trading statement today from Hunting which was fairly predictable but revenues are ahead of expectations primarily due to the busy state of the US shale market. Underlying EBITDA was $5.5m and stars were in perforating systems, premium connections and trenchless and speciality businesses. There is still no growth offshore and this is likely to remain so as per Dennis Proctor's comments at the time of the results. On the subject of DP, when I was away last week i'm sure I read that he was going to step down as CEO later this year but put it down to deliria. I havent had a chance to speak to anyone at Hunting since I returned but I am presuming that this was not a decision that he made himself and now that things are looking better the board have felt more empowered, as it were. More if and when I get it…
The trouble with writing long and ethereal statements, especially when the bumf at the top is all about world economies is that sometimes people dont get down to the good bits about your company. When I saw the THAL price first thing I feared the worst, indeed I was about to fling myself overboard until I progressed past the economics lesson. If you do that you get to see that the Chairman has ‘cautious but unpredictable optimism' and that ‘in 2016 we exceeded performance expectations at every level from sales to the bottom line'. Other positive comments include that the company has the same, asset light, model and its flexible management structure gives remarkable competitive advantages over the competition. So, the shares should be up, not down as the operating side of the company has performed very creditably and continues to do so…..Top stuff Duncan…
It's been a long haul for Martin Perry and Enteq but the shares have doubled as a tribute to their stickability quotient. Today's year end trading update is hardly milk and honey but as at Hunting, the management do acknowledge a pickup in US onshore activity. Cash has been preserved and remains at around $15m so I would hope to see some sort of geared recovery at some stage. For those of you who have stayed the distance with NTQ you deserve a medal and I still think that you will do ok, I do not advise standing on one leg whilst you wait however…
Yesterday I did a TipTV CEO interview and caught up with Dr Robert Trice of Hurricane following Friday's Capital Markets Day. The longest but probably the best ever chat can be seen on the link below…
And on Monday I did my usual Voxmarkets Podcast in which I talked about my trip to VOG, Hurricane, AmerisurResources and FAR Limited, this link is below and I will be writing about VOG at more length shortly.
With the bombing of the Borussia Dortmund coach last night the game was moved to tonight, leaving just Barca playing and they will need to do another lazarus like trick having lost 3-0 at Juve. Tonight the Foxes go to Athletico and it's a good night as Bayern take on Real…
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