WTI $103.75 -30c, Brent $108.74 -33c, Diff $4.99 -3c, NG $4.57 +1c
An early and swift blog today as I am out shortly, if I find that any of the ‘snap’ analysis needs more elaboration I will do so later or tomorrow.
Oil prices have drifted a touch, Brent is now in the June contract after expiry yesterday and if anything is now stronger than WTI after opening better this morning, mainly due to the Ukraine. WTI is weaker after the API inventory stats last night showed a stock build of 7.6m barrels against consensus of about 1.5m, these analysts haven’t got a clue!
The company announced late yesterday a big wind farm contract in the North Sea, in a consortium with Siemens they are building a platform for the BorWin 3 offshore transmission field for TenneT. No value was ascribed but running until 2019 it will add significantly to the order book.
A slightly cautious AGM statement from Hunting but only as the very cold winter in the US particularly hit sales but there has been a bit of order slippage in the Asia Pacific region. Overall the comments are positive, the Gulf of Mexico remains strong as does the International business and capital investment is going gangbusters which bodes well for the future. The general industry comments in the statement which are always key for Hunting are pretty positive and seeing how the American major service companies are doing makes me even more confident about my positive stance on Hunting at the moment.
At the results meeting last month it seemed like Lamps had something up their sleeve and I am pleased to say that they have announced a good contract with Ensco for two Le Tourneau Super 116 (E)’s with the option for two more. Without the options the contract is worth $390m and the company can build these things with their eyes shut and nowadays even manage to do the paperwork too. This will add nicely to the order book and the management is doing all the right things, I hope that before long they will add to that going to see a few institutions and maybe that elusive company visit which they continue to avoid, either way I am still very happy with Lamprell and think that a rise to previous higher levels should now be possible.
Enteq has been what one might euphemistically call a slow burner since it started and not all of the setbacks have been of its own making. I was happy to follow proven management although they set up just as the service industry took a bit of a bath and recovery from that has been difficult. They still have $19m of cash so I hope that they will invest sooner rather than later as it is clear that business is booming in their areas. Todays update says that EBITDA to end March is in line with expectations but that results due in June will include a non-cash impairment charge for goodwill and intangibles. I have struggled to see the company much and apart from a results meeting some months ago I’m not sure if they have done the roadshow I thought was necessary and of course they have parted company with the Finance Director since then. Either way down at this price I think its an interesting play and while it may take longer than first thought it is a small service company in the making and will probably reward investment.
The Gooners beat the Hammers last night and tonight the Toffees have their chance to leapfrog back against the Eagles. The Maccams go to Middle Eastlands, probably for a hiding and may kiss the Prem goodbye…
And congratulations to Luton Town as the Hatters are back in the Football League…