Reabold Resources set to expand operations in California
Reabold Resources PLC (LON:RBD) have said that they are looking to increase production across their operations in California.
Reabold noted that it had seen success at the which lies within West Brentwood licence in California. This means that it has unlocked a new field with more running room than initially anticipated.
The firm said: “VG-6 was designed to test a new geological horizon at West Brentwood, the Third Massive, different from the Second Massive which is the producing horizon for the VG-3 and VG-4 wells. Success at VG-6 has therefore opened up a new play on the West Brentwood field and therefore additional follow on targets.”
Reabold said that the VG-6 well was tested at 350 million standard cubic feet of gas per day, and following the results a decision has been made to put it on permanent production.
The oil and gas exploration firm added that gross oil production across California, was 50,286 barrels of oil equivalent between July and December 2019. At these sites, the firm holds a 50% interest.
Additionally, net revenue from hydrocarbon sales in California was $1.3 million between July and December 2019.
Stephen Williams, co-CEO, commented:
“We are delighted to have drilled our fifth successful well in California and to see strong rates of production from a previously untested horizon. Success at VG-6 has unlocked a new play with more running room at West Brentwood than we had previously anticipated.
“The excellent economics of our operations in California are evident from the high gross profit margin we are delivering for minor expense. With the addition of VG-6, production is set to continue to increase through 2020, following a strong 2019 where we added incremental wells and grew our income profile.”
Reabold work with Union Jack Oil
In December, the firm said that the West Newton field is being operated in a joint partnership by both Reabold Resources and Union Jack Oil (LON: UJO) was close to commencing in operation. Reabold Resources PLC has a 39% stake in West Newton, via its 59% holding in operator and 67% shareholder Rathlin Energy UK Ltd. Union Jack Oil holds a direct 17% stake in West Newton. This review has now been completed and work is imminently pending subject to regulatory approval. The design was reviewed following the discovery the Kirkham Abbey formation also contained liquid hydrocarbons, having previously been anticipated to be a “major” gas discovery. Shares in Reabold Resources trade at 0.60p (-3.23%). 26/2/20 14:56BST.BP cut links with three US trade associations over environmental policy differences
BP Plc (LON:BP) have said that they will cut links with three US trade associations, including the US’s main refining lobby.
The decision to cut ties today came about as the firm faced disagreements over their climate related policies and actives.
BP have made an extra effort to become a more environmentally friendly company, and in a statement a few weeks back they announced their intentions to be a net carbon zero firm.
The oil major’s new Chief Executive, Bernard Looney has told shareholders, investors and global businesses that a change is required by all to ensure that the effects of climate change are reduced and more environmentally friendly policies are advocated.
“Trade associations have long demonstrated how we can make progress through collaboration, particularly in areas such as safety, standards and training. This approach should also be brought to bear on the defining challenge that faces us all, supporting the rapid transition to a low carbon future. By working together, we can achieve so much more,” said BP Chief Executive Bernard Looney.
“BP will pursue opportunities to work with organisations who share our ambitious and progressive approach to the energy transition. And when differences arise we will be transparent. But if our views cannot be reconciled, we will be prepared to part company.”
BP said today that they will cut ties with the American Fuel and Petrochemical Manufacturers (AFPM). Notably, this follows in the same manner as two other oil majors in Shell (LON:RDSB) and French firm Total (EPA:FP).
The multinational also added that they will quit the Western States Petroleum Association (WSPA) and the Western Energy Alliance (WEA).
BP told the global business scene that they saw differences in its views on carbon pricing, with those stances taken by AFPM and WSPA. Interestingly, they will not renew EA membership because of significant differences around the federal regulation of methane.
“My hope is that in the coming years we can add climate to the long list of areas where, as an industry, we work together for a greater good,” Looney added.
“This is an ongoing process – BP will actively monitor its memberships, participation and alignment with trade associations to which it belongs and will provide periodic updates, internally to the board of directors and to stakeholders as appropriate. BP plans to undertake another review in around two years’ time,” said BP.
BP’s plans to become net carbon zero
A fortnight ago, BP announced their intentions to become a net carbon zero oil major. BP outlined that they want net zero carbon emissions on all operations by 2050, or even sooner. There was a particular emphasis on oil and prediction assets, as the firm outlined it was a a 50% drop in carbon intensity from all products sold by the same year or sooner. BP said that they would be installing methane measurement instruments across all major sites by 2023, as part of plans to cut methane intensity by at least 50%. BP have looked to change the identity of the brand, as many environmental pressure groups and activists have been quick to blame the oil and gas industry on issues such as climate change. The oil titan said that they currently produce 55 million tonnes of carbon dioxide equivalent per year across all worldwide operations, and they want to make significant ground in improving this. Looney concluded by saying: “Together we will aim to build a more agile, innovative and efficient BP. A purpose-driven, digitally-enabled, fully-integrated organization. I’m confident that this new leadership team, together with all our people, have the skill and will to turn BP into a thriving sustainable energy business that is a force for good in a net zero world”. Shares in BP plc trade at 425p (-0.70%). 26/2/20 14:37BST.SSP Group speculate over coronavirus as Asian business faces bruising
SSP Group PLC (LON:SSPG) are the latest firm to tell the market that their results and performance will be hindered by the outbreak of the coronavirus.
The food and drinks brand have specific operations at travel destinations, including airports and train stations. Brands within SSP Group include Upper Crust, Millie’s Cookies, Burger King and Starbucks – to name a few.
The firm noted that February sales in the Asia Pacific region will be bruised by the spread of the coronavirus, which was led to the firm enforcing cost reduction methods.
SSP also noted that it had seen a 90% crash year on year in air passengers in China, and 70% in Hong Kong.
The Asia Pacific region roughly accounts for 14% of the firm’s revenue – and the outbreak of the coronavirus is continuing to dampen global businesses, stocks and indices.
SSP also noted that the full year impact of the coronavirus is ‘uncertain at this stage’.
On a better note, trading was inline with expectations in the UK and continental Europe.
The firm commented today:
“In terms of the financial impact of COVID-19, our expectation is that for the month February sales across the Asia Pacific region (which accounts for approximately 8% of SSP Group revenues) will be approximately 50% lower YOY. Together with the impact in the Middle East and India, this is expected to reduce overall Group revenue in February by approximately £10m – £12m, with a corresponding reduction in operating profit of approximately £4m – £5m.
Clearly the duration of the COVID-19 virus and its impact on global travel is uncertain at this stage, as are its consequences for our financial performance for the full year. We will continue to take all the necessary action as appropriate. Our strategy remains unchanged, and we continue to be well placed to benefit from the significant structural growth opportunities in our markets over the medium term and to create ongoing value for our shareholders.”
Third quarter produces strong results for SSP
In July, the firm saw further progress in its financial performance during the Company’s third quarter. The Company said it made progress on its strategic initiatives during the third quarter, with revenues up 9.2% on a constant currency basis. This was comprised of a like-for-like sales growth of 2.0% and net gains of 7.2%. Based on actual exchange rates, Group revenues increased 10.3% year-on-year during the period. For the first three quarters from 1 October 2018 to 30 June 2019, Group revenues increased 7.6%. This included; like-for-like sales growth of 2.0%, net contract gains of 5.2% and 0.4% due to the impact of Stockheim. On an actual exchange rate basis, Group revenue increased by 8.3% on-year. The coronavirus continues to dominate news headlines each day, and the number of individuals is rising. At one point it did seem that the situation was under control, however reports yesterday said that Italy and Tenerife had been affected – which may show that there is still some issues that need to be tackled by global governments. Shares in SSP Group PLC trade at 572p (-4.19%). 26/2/20 14:17BST.Augean suspend dividend due to net debt situation
Augean plc (LON:AUG) have told shareholders that they will suspend their annual dividend due to its net debt situation.
The Executive Chairman commented: “The Group is currently trading in line with the Board’s expectations for 2020 with a continued focus on business growth in niche segments and cash generation. The Board will not pay a dividend for 2019, maintaining its position of not resuming dividends until the debt, recently drawn down to fund the HMRC payment, is significantly reduced.”
The firm said that it had swung to a net loss despite seeing revenue growth across the annual period.
In their financial year, which ended on December 31 – the waste management firm recorded a pretax loss of £15.3 million which sees a sharp drop from £10.6 million profit booked the year before.
Notably, Augean booked a £26.2 million charge related to the settlement of landfill tax assessments.
HMRC issued Augean South with a final assessment for £16.2 million from the period from February 2015 to May 2018, and in October a £11.4 million bill was issued to Augean North.
Pretax profit rose for the firm, from £11.4 million to £19.2 million – notably this equates to a 68% rise.
Augean recorded that revenues had climbed 34% year-on-year to $107.1 million from £79.7 million, which the firm said was down to good ales at all sales.
The firm praised the performance of the Treatment & Disposal segment and North Sea which saw rises of 24% and 61%.
Augean added that the group’s net debt was £17.8 million, compared to last year where they had cash surplus of £8.2 million.
The firm stated that they will not be paying a dividend until its HRMC payment is reduced.
Commenting on the results, Jim Meredith, Executive Chairman, said:
“2019 was a good year for the Group. I look forward to making further progress in 2020 with growth in the Group’s core niche markets.
The Board recognises that our business success is dependent on the quality, diligence and hard work of all Augean’s employees and I would like to take this opportunity on behalf of the Board to thank everyone who has contributed to the Group’s strong progress during the year.
As in previous years, I am pleased to note the addition of new shareholders to our register during the year and again I am thankful for the continued support from all of our investors.
The Group set ambitious targets for the 2019 year which it comprehensively exceeded. Undoubtedly 2020 is economically uncertain for the UK economy as a whole whilst Brexit plays out but, with limited direct exposure to EU markets, coupled with a strong start to 2020 trading and a robust pipeline of activity, the Board remains confident in the Group’s prospects for the new financial year.
October optimism fades for Augean
In October, the firm posted an impressive set of results, which saw shares rally. Augean said that 2019 statistics will show a 20% rise in landfill volumes across all waste sectors, with landfill prices also increasing by 20%. The company benefitted particularly from increased profits on radioactive waste operations, along with strong figures in waste treatment and North Sea businesses. Augean saw an adjusted pretax profit of £16.5 million, and that 2019 annual profits were set to exceed expectations at the start of the year. In 2018, pretax profit amounted to £10.6 million, following adjustment this rose 69% from 2017 totaling £11.4 million. Shareholders will be concerned that Augean have decided to suspend their dividend. The firm will look to rebalance its debt situation and hope that shareholders can hold optimism in the firm. Shares in Augean trade at 214p (-1.14%). 26/2/20 13:59BST.Donald Trump visits India
Donald Trump has been in India over the last few days, with the intention to get a trade deal done with India and also bolster his election campaign hopes.
The US President has said that he has agreed to ‘promptly’ conclude ongoing trade talks with Indian Prime Minister Narendra Modi.
Donald Trump has had a good relationship with India across his tenure in the White House, as him and Modi are similar in political views but different in others.
They both share a similar sentiment of nationalism combined with a strong business ethos, and it is no surprise that the two leaders have gotten along so well.
Trump’s visit to India lasted two days, across February 24-25, and he announced his intentions to sell $3 billion of military equipment to India.
“They agreed to promptly conclude the ongoing negotiations, which they hope can become phase one of a comprehensive bilateral trade agreement that reflects the true ambition and full potential of the bilateral commercial relations”, the White House said.
Despite the seemingly strong relationship with India, Trump has criticized the high tariffs on imports that have been placed.
“If the deal happens with India it will be at the end of this year and if it doesn’t happen then we will do something else,” the President said on Tuesday.
Being the shrewd businessman that Trump is, he has said numerous times that he wants to be treated fairly and given access to the vast Indian market space.
Trump right now is balancing many things, however his election campaign will be at the top of his priority list.
A few days back, I wrote about how Bernie Sanders could potentially challenge Trump in November – and this is still a big challenge for Trump.
However, the relationship he has built with one of the world’s superpowers in India is notable – and the effect that this may have on Indian American voters could help his re-election prospects.
Egdon Resources see interim output increase
Egdon Resources Plc (LON:EDR) have updated the market on Wednesday on their first half operations.
The oil and gas exploration firm said that production in the first half of its financial year had increased compared to the same period one year ago.
Additionally, the current volumes of production has remained constant with guidance.
Across the six month period, which ended on January 31, Egdon said that total production was 32,758 barrels of oil equivalent, giving an average of 178 barrels per day.
This saw a steady increase from the 30,026 barrels per day figure reported a year ago, or the equivalent of 164 barrels per day,
Egdon added that current production is also within its current guidance range of 170 to 180 barrels per day – and notably this is also higher than annual guidance expectations to be between 130 and 140 barrels of oil produced per day.
Mark Abbott, Managing Director of Egdon Resources plc, said:
“2020 has started positively for Egdon, with continued strong production across our portfolio, a positive outcome to the Wressle planning inquiry and the announcement of a farm-in by Shell U.K. Limited into our offshore Resolution and Endeavour projects.
Our current focus is on the Wressle field development, where we are working to discharge the planning conditions ahead of commencing site works. We will provide shareholders with a detailed update on Wressle and the Biscathorpe project following Joint Venture meetings in the coming weeks.”
Egdon’s deal with Shell
In January, Egdon announced that they had partnered with Shell (LON:RDSB) on two UK gas discoveries. Shell will be taking a 70% working interest in the two licenses and will take over operations, whilst Egdon will keep the remaining 30%. Shell will pay for the stake by funding 85% of the costs of buying and processing 3D seismic survey data for the Resolution and Endeavour gas discoveries on the licences. The acquisition price is capped at $5 million, beyond which Shell will pay 70% of costs. Egdon Resources would have impressed with the market and shareholders with the partnership with an oil titan in Shell. The firm will be hoping that this partnership can produce results for both parties. Shares in Egdon Resources Plc trade at 3p (-2.80%). 26/2/20 13:15BST.Resolute Mining complete phase two of share placing plan
Resolute Mining (LON:RSG) have announced that they have completed the second part of their share placing plan.
The gold miner said that they have raised AUD23.3 million through a proposed share purchase plan, following an equity raise in 2019.
The first phase of their share placing plan raised AUD196 million, and the update today will please shareholders that the firm now has the program nearly complete.
Resolute have said that they are planning to place a further set of shares to raise a final AUD25 million, which will complete the placing.
The funds are going to be used to pay off a $130 million bridge facility provided by Taurus Funds Management Pty Ltd – which was used to purchase Toro Gold Ltd.
Managing Director and CEO, Mr John Welborn, thanked the Company’s shareholders for their continued support:
“The positive response to the SPP from shareholders is greatly appreciated. Proceeds from the SPP form an important part of the total equity raising proceeds which are being used to repay debt and strengthen the Company’s balance sheet. Resolute is now well positioned to focus on operational performance and delivery of our strategic objectives.”
Resolute Mining see positive few weeks
Last week, Resolute Mining noted that they had seen higher gold reserves at the end of 2019. The gold miner reported a year-end rise in gold reserves, as the planned sale of its Ravenswood mine goes ahead. Resolute told the market that total ore and mineral reserves climbed 15% year on year, rising from 16.6 million ounces of gold to 19.1 million ounces at the end of 2019. The last few weeks have been positive for Resolute, and the firm should be confident following the reaction from shareholders of the share placing program. These funds will now be used to fill any outstanding bridge facilities, and the sale of the Ravenswood Mine should be progressing. Shares in Resolute Mining trade at 58p (-6.45%). 26/2/20 12:49BST.Revolution Bars produce impressive interim results, driven by strong festive trading
Revolution Bars Group PLC (LON:RBG) have posted a sound set of interim results on Wednesday afternoon.
The bar operator said that its loss had narrowed in the first half of 2020, as growth in stores had risen.
For the half year period ending on December 28, the firm saw total sales rise 3.5% to £81.2 million from £78.5 million a year ago.
Following a strong festive trading performance, Revolution added that like for like sales grew 1.2%.
The firm noted that its pretax loss narrowed from £3.5 million one year ago, to £1.6 million recorded today.
Revolution said to shareholders that they do not intend to pay an interim dividend as they want to focus on investing into revitalizing its brands and reducing debt.
Rob Pitcher, Chief Executive Officer, said:
“We have continued to make significant progress revitalising the Revolution brand and further improving the performance of Revolución de Cuba. Having stabilised the business in FY19, FY20 is about consolidation and the benefits of the many actions that we have taken are beginning to be realised.
H2 FY20 has started encouragingly and should we continue on our current trajectory then the Board is confident the business will be well-positioned to resume site expansion in FY21.”
The Chairman, Keith Edeleman added:
“Consistent with the strategy we announced a year ago to focus both management and capital resources on our existing estate and to reduce bank debt, I am pleased to report that in the 26 week period we refurbished seven bars, like-for-like sales performance has continued to improve, and good progress has been made on debt reduction. Our underlying business is much stronger and we are on track to deliver FY20 results in line with market expectations.”
Revolution see strong festive trading
A few weeks back, the firm saw their shares jump following an impressive festive trading update. The firm reported a seventh successive year of record Christmas sales and this lead to a rise in first half revenue. Additionally, shareholders were further impressed as the firm announced a deal with real estate landlords to surrender its lease on five struggling sites, and have rent reductions at four other units. In the four weeks to December 31, the firm saw a 4% rise in like for like sales, as weekly sales during the period averaged £65,000. In the first half period, ending December 28 revenues grew 3.4% to £81.2 million from £78.5 million on year ago, as like for like sales also rose by 1.2%. Shares in Revolution Bars Group PLC trade at 63p (-6.51%). 26/2/20 12:35BST.McColl’s shares crash 16% as firm swings to annual loss
Shares in McColl’s Retail Group PLC (LON:MCLS) have crashed on Wednesday afternoon as the firm gave shareholders a disappointing update.
The retail firm noted that it had swung to an annual loss, as revenues across stores had declined. Additionally, the firm added that store closures had lead to a suspension in final dividend.
Within their financial year, which ended on November 24 – the firm posted a pretax loss of £8.6 million compared to a pretax profit of £7.9 million one year ago.
McColl’s said that this was largely due to a one-off, non cash goodwill impairment of £98.6 million.
Revenues also declined by 1.8% to £1.22 billion from £1.24 billion, as like for like sales remained flat. On an adjusted basis, pretax profit slumped by 30% to £7.3 million from £10.5 million.
As a result, McColl’s have declared that their total dividend will be 1.3p, down from the 4p figure a year ago.
Jonathan Miller, Chief Executive, said:
“We have stabilised the business and refocused on retail execution in 2019, in line with our key priorities for the year. Against challenging trading conditions we have made good operational progress, whilst reducing debt and making appropriate levels of investment.
Looking ahead to FY20, we are embarking on a strategic change programme, refining our model and better tailoring our offer to the customers and communities we serve, using the learnings to build the foundations for future growth.
The fundamentals of the convenience sector remain strong and, with our improving customer proposition, I am confident in delivering sustainable returns for shareholders over the long term.”