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AWLCF - Awilco Drilling


DTEJD1997

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I own it at IB also, you can buy it directly under the norwegian symbol AWDR. Trades in norwegian currency with the norwegian commission scale. I had to fill out a form to have the norwegian market added to my permissions, only took 5 minutes.

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Reports are floating around about TDAmeritrade pulling the dividend out of people's accounts due to a "technical error." Anyone privy to this ?

 

I have a DRIP on Awilco at TD, and for some bizarre reason it shows up in transactions as having bought the shares through DRIP and then giving a second dividend which was then removed an hour or so later. I think that's what it was.

 

It didn't have anything to do with DRIP, as far as I know. I called TD customer service and they said the listing agent paid out the dividend in an incorrect amount.

 

But more to the point - Are brokers allowed to pull dividend amount from people's account willy-nilly, without notice? Who is responsible for losses if things go awry due to say...a margin call triggered as a result of a dividend reversal ?

 

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bizaro - That's news to lot of us! I wasn't aware IB allowed you to buy AWDR. At least that was the case late last year when I confirmed this with an IB rep. Thx for the info. Comparing it to Fidelity, it seems IB is obviously cheaper (Fido charges 1% for currency conversion alone! + 160 nok). But at this point I'll keep holding it in Fidelity because they allow you to sell it on the OTCMarket in USA and OsloAxess, and a lot of times the stock trades at a premium on OTC.

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At IB it's still accrued. I don't own the ADR, the actual Norwegian share.

 

Writser,

 

That is interesting. In IB, it shows me the ticker as AWDR, but it does not let me buy it. How were you able to buy the norwegian stock directly in IB?

 

To trade, you have to request access to the Norwegian exchange in the IB backend. IB allowed trading on the Oslo Borse just a couple of months ago. Live support also told me they were working on other "obscure" European exchanges but didn't want to give a timetable. A couple of days ago they announced support for TOM (http://www.amsterdamtrader.com/2014/03/ib-joins-tom.html), a cheaper alternative for options on Euronext.

 

On a sidenote, I've looked a couple of times at buying IBKR. These guys are just crushing the competition in every way (except for userfriendlyness maybe) and Peterffy sounds like an extremely smart guy. Unfortunately it doesn't look extremely cheap and such a big company is way too complicated for me.

 

 

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A few weeks ago I signed up for Norwegian trading at IB.  I love IB but their Norwegian trading was a bust.  Its not really Norwegian, but a Nordic trading platform of Sweden and Norway combined originating in Sweden.  It is the pink sheet version of that market.  So the liquidity is zilch.  I don't recommend it.

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A few weeks ago I signed up for Norwegian trading at IB.  I love IB but their Norwegian trading was a bust.  Its not really Norwegian, but a Nordic trading platform of Sweden and Norway combined originating in Sweden.  It is the pink sheet version of that market.  So the liquidity is zilch.  I don't recommend it.

 

You mean OMX nordic instead of the actual OBX? Agree it's not optimal, but better than nothing. Liquidity in the larger names is fine. And any bigger order you enter will probably be ARB-ed v.s. the real exchange anyway so you shouldn't be that worse off.

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Published: 08:00 CEST 31-03-2014 /GlobeNewswire /Source: Awilco Drilling Plc /XOSL: AWDR /ISIN: GB00B5LJSC86

 

AWDR - Successfully completed bond issue

 

Awilco Drilling PLC has successfully completed a USD 125 million secured bond loan in the Norwegian bond market with maturity in April 2019. The purpose of the bond loan is refinancing of existing debt and for general corporate purposes. Settlement date is expected to be 9 April 2014 and the bond loan will be issued with an interest rate of 7.00%. The bond issue was substantially oversubscribed. An application will be made for the bond is to be listed on Oslo Børs.

 

RS Platou Markets AS acted as sole manager and bookrunner.

 

Aberdeen, 31 March 2014

 

 

For further information, please contact:

Ian Wilson, CFO Awilco Drilling

Telephone: +44 7789 954569

 

Cathrine Haavind, IR Manager, Awilco Drilling

Telephone: +47 93 42 84 64

 

Simen Flaaten, RS Platou Markets

Telephone: +47 22 01 63 77

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So they got the interest rate reduced by 200 basis points, so it reduces interest around $2.25 mm per year. It'll be interesting to see what they do with the extra $27 mm. My guess it goes to paying off part of the BOP.

 

 

Edit: Checking the AWDR stock, it's up almost 3% this morning, trading around $20.71 USD

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So they got the interest rate reduced by 200 basis points, so it reduces interest around $2.25 mm per year. It'll be interesting to see what they do with the extra $27 mm. My guess it goes to paying off part of the BOP.

 

Hmmm....my guess is that it will be used to "smooth" out the dividend. 

 

$27MM is not enough to make another acquisition.  It is enough to pay a quarterly dividend, or to pay for the BOP.

 

I would rather have the company borrow money to keep the dividend steady for a quarter than drop it.  Dropping the dividend, if only for a quarter, would spook too many investors...

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I'd love to pick up more shares when if/when they are dumped for a temporary dividend cut/pause! As for the interest rates, anyone know how the 7% is chosen? Is it company saying "we would like to issue 7% bonds" ? Or the underwriter suggesting they issue 7% bonds?

 

If the goal is to price the bonds at a price no higher than at which 100% of them would be sold, and if 7% caused it to be "substantially oversubscribed," why was the interest rate not lowered further? Any insight into the pricing appreciated. TIA.

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Hah, I was thinking in similar lines this morning. AFAIK the bookrunner assesses demand for the new issue (but they also have to keep their buyers happy). Price discovery happens 'off-market' so it is not terribly efficient. Looks like this one could (in hindsight) be priced a bit more competitively.

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So I'm reading this quarterly report from a Value Fund based in Australia and I stumble upon a discussion about global Oil demand/supply dynamics and his outlook for the future. A very rational discussion I believe. Then what follows is this:

 

 

 

"One obvious beneficiary of increased upstream, or exploration, activity is the offshore

drilling sector. Exploration and production companies will continue to drill as long as they

can earn attractive rates of return and, in the current environment, that makes for a busy

market. Rig utilisation is very high around the world, and contracted daily rates are healthy.

The Fund has invested in one stock in this sector paying a dividend yield in excess of 20%. The shares are very thinly traded which helps explain its discounted price. Positive

attributes include stable cash flow stemming from a contracted rig fleet, a low cost of

marginal production, which helps insulate it against movements in oil prices, and a savvy, opportunistic management team. It’s far from risk-free—there is no doubt returns like these

will lure new competition and drive returns down—but a healthy flow of cash back to

shareholders over the next few years will diminish much of the risk for today’s purchaser."

 

 

He never mentions the name under the guise of "reserving the option to purchase more stock in the near future," but what are the chances that he's talking about Awilco? It sure feels like it...  :D

 

Or maybe I'm suffering from confirmation bias...

 

Souce: http://www.iifunds.com.au/sites/default/files/report/IIF_QR_SEP_13_3.pdf [Page 6 & 7]

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Thanks, nice find. Reading it reminded me how well-timed (lucky?) their acquisition was; they bought 2 rigs for $200m four years ago and in 2013 excess cash flow was already > $100m. Granted, no downtime / upgrades in 2013 but still impressive.

 

According to the presentation their backlog is now $712m with options outstanding for 275 days and 27 months (!) respectively.

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http://www.hegnar.no/personlig_okonomi/artikkel496591.ece

 

 

Extension golden bird in Awilco

The valuation of individual stocks trying Collett & co. to calculate the composition of a fair value for the company.

 

- We find out what we think the company will earn , compared to what it should be worth . There will also be a relative game compared to other stocks, and it is to erect companies against each other that we have the matrix continues Arctic director .

 

In February 2012, when the rig company Awilco Drilling accounted for 35 kroner, Collett & co. forward to a fair value of 130-150 per share.

 

Price target of 140 million was reached in November last year, when the stock was at all- time high of 142 million .

 

- When this happens , implies our strict discipline that we sell. So did we , and made ​​money in spades at the company, says Collett .

 

Strong upside rig

He shows us a matrix that tells us that managers see little upside in rig time.

 

Three out of five shares - Fred. Olsen Energy , Seadrill and Songa Offshore - is the Arctic's target price at current levels.

 

Odfjell Drilling and Awilco Drilling has upside , but limited .

 

Awilco get the best matrix score of 11, while Songa Offshore receive the lowest score ( 6).

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Interesting company. Have not entered yet but seems very promising to be honest. Good balance sheet and restructuring debts.

 

Seems to be a little undervalued at current prices. I get an up to date value of about 150 NOK.

However with time this company could increase revenue by adding another rig which would mean growth...

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  • 2 weeks later...

Northern Offshore has been mentioned a couple of times in this topic.  I own some shares, any one else?

 

I also own some shares of Northern Offshore...

 

Be aware this company's management is no where near as good Awilco's.

 

I think the whole key with Northern Offshore is the drillship off of Nigeria.  If that works out OK, AND we get more cashflow that is distributed to shareholders, the stock will pay some nice dividends and then pop up in price.  At that point, I would be tempted to sell.

 

The risk is higher, but so are potential capital gains.

 

Perhaps I should start a thread for this...

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