Nostra Terra Oil & Gas shares up on ‘threefold increase in reserves’
Nostra Terra Oil & Gas shares (LON:NTOG) were up on Thursday after the company announced an increase in reserves at its Texas assets.
The oil and gas exploration company announced a 276% increase in oil reserves to 2,429,660 barrels of oil, at its assets at Pine Mills in East Texas and its Permian Basin assets in West Texas. This also included the firm’s Mesquite asset.
As a result, Nostra Terra Oil & Gas said it expects future net income of $58.65 million.
Back in September, the company reported its interim results for the six months to June 30.
Nostra posted a 50% increase in revenue for the period to £823,000, compared to £549,000 in 2017. In addition, average net oil production totalled 101bopd during H1.
Nostra Terra Oil & Gas is an AIM-listed company. It was founded back in 2005. It has operations in the US and Egypt.
Shares ticked up more than 4% in the immediate aftermath of the announcement. Shares are currently trading flat as of 3:55PM (GMT).
Elsewhere in the oil and gas sector, UK Oil and Gas shares (LON:UKOG) rallied after announcing the acquisition of a further interest in Horse Hill.
Similarly, Wentworth Resources shares (LON:WEN) were up during Thursday trading, after the company issued an update to investors.
Patisserie Valerie rescued by Irish private equity firm
Patisserie Valerie has been rescued by private equity firm Causeway Capital, saving 2,000 jobs.
Ireland’s Causeway Capital agreed to buy the struggling bakery chain from administration, valuing the firm at £13 million.
Causeway Capital’s Matt Scaife said: “Patisserie Valerie is a heritage brand, much loved by its loyal customers. This investment should mark the end of a turbulent period for customers and suppliers alike. We are delighted to partner with the team and look forward to helping the business return to growth.”
Patisserie Valerie’s new chief executive Steve Francis also commented: “We are delighted to welcome Causeway Capital as our partners in Patisserie Valerie, ending a disruptive period of uncertainty for the business. The affection and loyalty for the brand among our customers and employees, and Causeway Capital’s enthusiasm and support for the business, creates for us the foundations for an exciting future for the business. ”
Last year proved a turbulent year for Patisserie Valerie, after the uncovering of a series of “accounting irregularities” plunged the chain into disarray.
The chain fell into administration in January after it failed to reach an agreement with lenders.
KPMG had been appointed to handle the process, announcing the closure of 71 locations and the loss of 902 jobs.
Mike Ashley’s Sports Direct had originally tabled an offer of £15 million for the chain, but KPMG rejected it.
The Serious Fraud Office is currently investigating Patisserie Valerie’s former finance director Chris Marsh over the allegations of “accounting irregularities”.
Patisserie Valerie was founded back in 1926, making it almost 100-years old.
The Restaurant Group CEO announces departure
The Restaurant Group (LON:RTN) Chief Executive Andy McCue announced is departure on Thursday, causing shares to fall.
The group, which owns the Frankie and Benny’s and Garfunkels’ chains, said that Mr McCue would be leaving the role due to “extenuating personal circumstances”.
Andy McCue, CEO, commented on his decision:
“In recent years, we have achieved much in a challenging market. I’m confident The Restaurant Group is well positioned with the scale, talent and levers to drive profitable growth. While I recognise that this decision is untimely, it is the right one for me and my family. We have a strong team in the business and a clear plan which we are focused on delivering.”
“Whilst we are clearly disappointed that he will not be able to provide the long-term leadership for the business, we understand and respect the decision he has made purely on personal grounds,” commented company chair Debbie Hewitt. McCue has been chief executive of the group since 2016, having joined from PaddyPower. Back in November, shareholders approved the company’s acquisition of Wagamama, as part of a £559 million takeover deal. McCue was a key proponent of the move, amid shareholders reservations over the deal. However, the acquisition has been a tipped as a way for the Group to diversify its food offerings and to target a more health-conscious customer. The restaurant industry has been struggling as of late, with many rival chains such as Prezzo (LON:PRZ) and Jamie’s Italian’s suffering from high rents and weak consumer demand. Both chains announced the closure of various sites in 2018 as a result of a tough trading climate. Shares in the company are currently -12.33% as of 12:13PM (GMT).3 Cannabis Start-ups To Watch In 2019
Back in October, Canada became the first G7 nation to legalise the recreational use of marijuana.
In the aftermath of Canada’s decision, cannabis is increasingly commanding attention from the Investment world.
However, with its entering into the mainstream, it is often difficult to ascertain which Cannabis companies may present the most investment potential.
So, we’ve collated 3 start-ups, including two UK-based cannabis companies, which may prove particularly interesting to watch in 2019.
- Oxford Cannabinoid Technologies (OCT)
Coca-Cola HBC results at top of guidance, shares remain low
Leading bottler of The Coca-Cola Company, Coca-Cola HBC AG (LON:CCH), has revealed its full-year financial results ended 31 December. Annual performance was at the top of its guidance range, driven by strong volume growth. However, shares in the company were trading over 5% lower on Thursday morning.
This was the second year of FX-neutral revenue growth above the company’s 4-5% target range, allowing Coca-Cola HBC to make good progress towards its 2020 margin targets.
Volume growth accelerated to 4.2%. All segments experienced growth, but it was particularly driven by sparkling beverages.
Net sales revenue was up 6% on an FX-neutral basis and reported net sales increased by 2.1%.
Earnings (EBIT) were up 9.6% to €680.7 million when compared to the year prior. EBIT margin was up 70 basis points to 10.2%, and reported margin was up 60 basis points to 9.6%.
Free cash flow was €370.0 million. Moreover, final dividend was proposed at €0.57 per share, a 5.6% increase compared to the 2017 dividend.
Coca-Cola HBC has, however, forecasted 2019 economic growth to slow down in a variety of its markets.
It does expect volume to continue to grow across all three segments. Chief Executive Officer of Coca-Cola HBC AG, Zoran Bogdanovic, commented on the results: “In 2018 we delivered another very good performance with revenue growth above our target range and another step up in margins. Strong volume growth in all our segments was helped by a record number of new product launches, whilst price/mix improved for the eighth consecutive year. This growth supported margin progress, which we delivered while increasing our investment in marketing.” “Our sharp focus on cost efficiencies continues while we invest in the business for growth. The shape of the business, capabilities and commitment of our people and our overall commercial proposition give us confidence in our ability to continue to grow revenues and margins.” Last year, The Coca-Cola company set its eyes on the cannabis market, closely watching the cannabis-infused drinks market. Additionally, it purchased the Costa Coffee chain from Whitbread in a £3.9 billion deal, following the announcement from Whitbread earlier in the year that it wanted to spin off its Costa Coffee branch. At 10:22 GMT Thursday, shares in Coca-Cola HBC AG (LON:CCH) were trading at -5.63%. Trading is yet to open in the US, but shares in The Coca-Cola Co (NYSE:KO) closed on Wednesday trading 0.26% higher.EasyJet, Delta and Italy’s state controlled railway discuss Alitalia rescue deal
EasyJet (LON:EZJ) announced on Thursday that it has entered in discussion with Delta Air Lines and Ferrovie dello Stato Italiane to form a consortium to rescue carrier Alitalia.
Ferrovie dello Stato is Italy’s state controlled railway. It will start negotiating with the two airlines to form a rescue plan for struggling Italian carrier, Alitalia.
Alitalia has been under special administration since 2017. This is following the rejection of a rescue plan by workers, preventing the airline from raising new financing from its shareholders. The Italian airline currently has a £789 million state loan, but it is seeking international partnerships in order to survive.
Italy’s Ferrovie dello Stato announced a statement outlining that both Delta and EasyJet had confirmed their interest in forming a rescue deal with the railway group. Delta confirmed that it has submitted a “general and non-binding letter of interest” to Ferrovie dello Stato. Though EasyJet did release a statement confirming its interest, it has emphasised that there was “no certainty at this stage that a transaction will proceed”.
German airlines group Lufthansa also expressed interest in rescuing Alitalia in January. It held talks to acquire a majority stale in the airline, expressing interest to fully take over the company long-term.
Last November, EasyJet revealed that it had seen a successful year, with annual profits growing in-line with expectations. Equally, results indicated that 88.5 million passengers flew with the low-cost airline throughout the year. It was heavily hit, however, by the recent drone-induced chaos at Gatwick. The Gatwick drone sightings cost the airline £15 million. This is split between £10 million in customer welfare costs and a £5 million loss in revenue. Despite the financial hit of the drone sightings, EasyJet’s trading update expressed positive news and confidence amid the UK’s uncertain departure from the European Union.
At 09:56 GMT Thursday, shares in EasyJet plc (LON:EZJ) were trading at +0.62%.
Though the market is still closed in the US, shares in Delta Air Lines Inc. (NYSE:DAL) closed yesterday trading at +1.04%.
AstraZeneca meets guidance as new medicines lead strong performance
AstraZeneca (LON:AZN) announced on Thursday that it saw a “very strong” fourth-quarter performance, boosted by new medicines. As a result, the drug maker has emphasised its return to growth as it meets its guidance.
Product sales growth for the fourth-quarter jumped 5% to $5.77 billion.
For the full financial year, revenue dropped 2% to $22.1 billion and product sales increased 4% to $21.05 billion. This remains in-line with guidance of a low-single-digit growth.
Moreover, earnings per share fell 19% to $3.46 per share, which is towards the upper end of guidance for earnings of $3.30 to $3.50 per share.
Core earnings were up 22% to $1.58 per share.
Oncology sales soared 50% to $6.04 billion as the performance of new drugs led growth.
For the next financial year, AstraZeneca anticipates that core operating profit will increase, ahead of product sales, by a mid-teens percentage. Additionally, capital expenditure is set to be broadly stable. Core operating expenses are expected to increase by a low single-digit percentage.
In October, AstraZeneca announced that its third-quarter earnings had dropped and underscored its Brexit contingency plan.
Chief Executive Officer Pascal Soriot commented on the results: “Closing the year with another strong quarter, our performance confirmed that AstraZeneca has returned to growth. Our new medicines performed particularly well across the therapy areas and the Emerging Markets business went from strength to strength. 2019 will be a year of focus on continued pipeline delivery and flawless commercial execution. The performance of our new medicines demonstrated the ability of our commercial teams to convert the pipeline into successful medicines.” “As we recently entered a new phase in our strategic development, we have refined our organisation to position ourselves for the next phase of our journey. The changes are designed to further integrate research and development and accelerate decision-making and the launches of new medicines, consolidating what we believe is already one of the most exciting and productive pipelines in the industry. We are also enhancing our commercial units to increase collaboration with our R&D organisation, enabling greater commitment to our main therapy areas; we want AstraZeneca to be more agile, collaborative and focused as we enter a period of sustained growth.” “Our strategy and plans remain unchanged, with sales growth and a focus on cost management anticipated to drive growing operating profit. I’m pleased that we are fully on track to meet these commitments as we build a sustainable level of growth and a pipeline that is benefitting more and more patients around the world.” Earlier this month, AstraZeneca’s treatment for a rare disease was granted orphan status. During the 2018 financial year, it sold its US rights to its respiratory tract infection treatment to the Swedish company Sobi. Additionally, it sold its European rights to an acid-reflux medicine to Grunenthal. At 09:23 GMT Thursday, shares in AstraZeneca plc (LON:AZN) were trading at +4.07%.Moneysupermarket.com reveals 8% full-year revenue increase
Moneysupermarket.com (LON:MONY) announced its preliminary results on Thursday for the year ended 31 December 2018. Indeed, the British price comparison website posted an 8% rise in revenue as it significantly progressed its strategy in accelerating growth. Shares in the company were up by almost 5% during early trading on Thursday morning.
Group revenue was up 8% to £355.6 million compared to £329.7 million the year prior.
Operating profit was £108 million, a 14% jump compared to £94.9 million from the previous year.
Adjusted EBITDA was £129.4 million, 2% higher than the £127.2 million figure from 2017.
Total dividend was up 6% to 11.05p per share, reflecting its “progressive” dividend policy.
During the beginning of the 2018 year, Moneysupermarket.com reported a 4% growth in revenue for the first-quarter.
The results confirmed that the price comparison service was on track for the rest of the year. CEO of Moneysupermarket.com, Mark Lewis, commented on the results: “In 2018 we made great progress on our Reinvent strategy. As well as growing the business we helped save customers a record £2.1bn. Our investment in optimising our sites means we have made saving even easier.” “In 2019 we are taking price comparison to the next stage by offering people more personalised ways to save and on more of their household bills.” But, though the company has said that its markets remain “dynamic” and “healthy”, it has predicted that its core market will grow 4-5%, below its previous estimate. It now expects a later recovery to motor insurance premium inflation, the company warned. Looking ahead, the company has said it is “confident” that it will deliver market expectations for the new year amid an “encouraging” first six weeks. In addition to the results, the company also revealed a directorate change. It has been announced that Robin Freestone will be appointed Chairman of the company’s board. At 08:51 GMT Thursday, shares in Moneysupermarket.com Group plc (LON:MONY) were trading at +4.85%.Tullow books profit and reinstates dividend
Tullow Oil Plc (LON:TLW) have announced a shift to an annual profit after a hike in revenues. The news has allowed the oil and gas exploration firm to reinstate its dividend for its shareholders.
The latest round of results announced that the company had produced 88,200 barrels of oil per day, and this informed their guidance for 2019, which stands at 94,000-102,000 bpd.
Tullow recorded a climb in revenues of 7.9% to $1.86 billion, with write-downs and costs – for instance impairments of property, plant and equipment – down from $539 million to $18 million on-year.
As a result, the company were able to post a pre-tax profit for the full financial year through December, with a figure of $85 million, up from negative $175 million the year before.
In response to a change in strategy, Chief Executive Paul McDade said,
“Tullow has worked hard over the past few years to become a self-funding, cash-generating business with a robust balance sheet, low-cost assets and a rigorous focus on cost and capital discipline,”
“This has allowed us to set a clear capital returns policy which will start with the 2018 final dividend announced today.”
“Our high-margin producing assets in West Africa, substantial development assets in East Africa and exploration licences in industry hotspots provide Tullow with a strong foundation for growth in the years ahead.”
Tullow as a portfolio candidate
The company announced a dividend of 4.8c per share, with share prices rallying in Wednesday trading, up 8.2p or 3.89% to 219.2p per share 13/02/19 17:09 GMT. Analysts from RBC Capital Markets have upgraded their stance on Tullow stock from ‘Sector Perform’ to ‘Outperform’, while Barclays Capital downgraded their rating from ‘Overweight’ to ‘Equal Weight’ and Morgan Stanley reiterated their ‘Overweight stance’.Serabi Gold maintains guidance despite miner fatality
Serabi Gold maintained its production guidance in an operational update released on Wednesday, despite a miner fatality halting operations.
The gold mining and development company said January gold production would be 3,671 ounces.
Serabi Gold added that its cash position at end of the month was $12.8 million.
It also said that a Geological Resource update drilling was close to completion at Coringa. The update is set to be published in March and June of this year.
Chief Executive Officer Mike Hodgson commented: “We are delighted to have started the year in much the same way as 2018 ended, with excellent production…”
He added: “At Coringa, we are close to concluding a drill programme, the results from which will be included in the resource update. As reported at the end of January the results to date have been excellent. We remain on schedule to publish an updated geological resource estimate before the end of the first quarter, and will follow this up with the preparation of a PEA, the results of which are expected to be available before the end of June 2019.”
On Tuesday, Serabi Gold issued a statement regarding a miner fatality at its Palito gold mine in Brazil.
As a result, production had been halted in anticipation of the outcome of an investigation by the police and the relevant authorities.
Serabi Gold’s operations are focused in Brazil. Its projects include The Palito Mining Complex and Coringa Gold Project.
Shares in Serabi Gold (LON:SRB) are up +9.59% as of 12:51AM (GMT).