matts Posted June 23, 2013 Share Posted June 23, 2013 Letter of Intent signed with Apache and Taqa http://www.awilcodrilling.com/4142-Financial-News-Message?msg=http://cws.huginonline.com/A/147077/PR/201306/1711242.xml Link to comment Share on other sites More sharing options...
DTEJD1997 Posted June 23, 2013 Author Share Posted June 23, 2013 Matts: WOW! That is incredibly good news! WillPhoenix is locked up until 2017! I wonder what the day rate is for it? I wonder if AWLCF will go up when trading opens? We will see. Link to comment Share on other sites More sharing options...
LongTerm Posted June 23, 2013 Share Posted June 23, 2013 It looks like the day rate is about $387,000 from the press release, but this is only a letter of intent. I'm not sure how binding this LOI is. Usually an LOI provides price protection for the buyer of services but not security for the seller. So I view this as a limit on the upside of the day rate which the WilPhoenix can command as of mid 2014, not a guarantee of future income. Perhaps someone with more industry experience can correct me. Link to comment Share on other sites More sharing options...
BG2008 Posted July 8, 2013 Share Posted July 8, 2013 Seems like prices are starting to creep up. I checked a Norwegian website for rumors of the acquisition, some posters stated that they have spoken with management and they were merely checking prices. I guess once the LOI becomes a firm contract, the investment thesis becomes a lot more compelling. http://forum.hegnar.no/thread.asp?id=2180106 Has anyone figured out why we only received $0.95 instead of the $1 in dividends? The company does operate in dollars and they declared their dividends in dollars. The dividend came from GB and should have zero foreign tax withholding. Link to comment Share on other sites More sharing options...
Gamecock-YT Posted July 8, 2013 Share Posted July 8, 2013 Any news out there today? The stock went gangbuster at the close in Oslo today. Up almost 4% in the last 10 minutes of trading. AWLCF is up 7% today. Link to comment Share on other sites More sharing options...
tytthus Posted July 8, 2013 Share Posted July 8, 2013 Has anyone figured out why we only received $0.95 instead of the $1 in dividends? the way i understand things, some market maker sponsors AWDR.os allowing us to buy AWLCF. they may charge a fee...i got dinged $15 at TDA. AWDR.os probably has a currency translation from US$ to Kroners, then there is probably another translating from Kroners to US$ for the AWLCF payment. these currency translations never work out in your favor. the market maker undoubtedly skims a portion for themselves.... in this case, it wound up dinging us about 4.5%, and is roughly in line with other otc situations i've been involved with, like NATDF. Link to comment Share on other sites More sharing options...
BG2008 Posted July 8, 2013 Share Posted July 8, 2013 Thanks, very helpful. I guess it's the cost of doing business. Link to comment Share on other sites More sharing options...
BG2008 Posted August 13, 2013 Share Posted August 13, 2013 67k shares traded today. This is the most shares traded in any given day for the ADRs since they were listed. Perhaps a yield oriented fund got involved today? Link to comment Share on other sites More sharing options...
roughlyright Posted August 13, 2013 Share Posted August 13, 2013 I am already long on this stock. I am trying to get a handle on the risk in this stock. Does anyone know any statistics on the probability of a rig blowing up in a given year? Is this risk 1 in 10 or is it 1 in 1000? I could not come up see any ballpark numbers by searching on the web. Any inputs are greatly appreciated. Link to comment Share on other sites More sharing options...
BG2008 Posted August 13, 2013 Share Posted August 13, 2013 No specific stats, but I can vouch that the catastrophic risk (Transocean/BP) type disaster is closer to 1 in 1,000 than 1 in 10. Most of the larger owners like RIG, Ensco, Noble Corporation, Hercules, Diamond, own fleets of dozens of rigs. Aside from Transocean, I don't (personally) recall the last time that a rig experienced a catastrophic failure of some sort aside from Transocean. I think risk tend to come in clusters. For example there was a shallow water driller called Seahawk drilling which went bankrupt which was subsequently bought by Hercules following the Transocean/BP disaster. (I believe equity In short, the ban in GOM drilling put them out of business. Overall, I say Awilco is not an investment that you size at 30%, but it's certainly worthy of a mid single digit allocation in your portfolio. Link to comment Share on other sites More sharing options...
roughlyright Posted August 13, 2013 Share Posted August 13, 2013 Thank you BG for your insights. very helpful. Link to comment Share on other sites More sharing options...
Hielko Posted August 13, 2013 Share Posted August 13, 2013 Imo the catastrophe risk gets way more attention than is deserved. It's low enough that it doesn't significantly impact the value of the business. There are hunderds of drilling rigs operating around the world right now, and even if one would explode every single year it's still not that risky (and historical average is better than that). Just because Deepwater horizon was such a big event it's on the front of everybody thoughts. The average investor probably owns multiple stocks with a higher catastrophic risk probability without even worrying about it. Link to comment Share on other sites More sharing options...
tytthus Posted August 13, 2013 Share Posted August 13, 2013 I'd agree catastrophic risk is low, yet it would still be a huge financial burden if there was significant down time for one of the rigs.... Link to comment Share on other sites More sharing options...
NoCalledStrikes Posted August 14, 2013 Share Posted August 14, 2013 Nice to see the firm contract news released before tomorrow's quarterly announcement. It will be interesting to see if the divie is held at $1.0 or if it fluctuates a few pennies to reflect the stated position to distribute all cash over the 35M buffer. AWDR - Contract signed with Apache and Taqa With reference to our press release of 23 June 2013, Awilco Drilling PLC is pleased to confirm that the contract with Apache North Sea Limited and TAQA Bratani Limited for the provision of WilPhoenix for a 3 year firm term commitment plus up to a further 27 months of options has been signed. The contract is expected to commence in the second half of 2014. WilPhoenix is one of Awilco Drilling's two Enhanced Pacesetter semi-submersibles and is equipped for drilling in water depths up to 1,200 ft. Aberdeen, 13 August 2013 Link to comment Share on other sites More sharing options...
DTEJD1997 Posted August 14, 2013 Author Share Posted August 14, 2013 Hey all: The catastrophic risk level is probably lower than ANY mentioned here. Think of this...these rigs have been in use since the early 80's. That is about 25 years or so. So in terms of days, that would be about 10,000 days. Neither rig has blown up, after at least 20,000 days of operation. Of course, anything can happen. It was interesting that well over 60,000 shares traded today in the USA. One contract for the WilPhoenix has been firmed up with Apache today and that it is starting in the 2nd half of 2014. The contract will run for 3 years, with a 27 month option. Earnings should be coming out tomorrow (8.14.13) after the market in Oslo closes. This is going to be an EXTREMELY important quarter. We will see what earnings are, but perhaps even more important is the dividend announcement. If it is $1/share, AWLCF should start showing up on some income screens, and we should see the stock rate higher. We will see. Link to comment Share on other sites More sharing options...
BG2008 Posted August 15, 2013 Share Posted August 15, 2013 This is pretty darn good news. http://hugin.info/147077/R/1723147/574226.pdf Awilco Drilling PLC reported contract revenue of USD 59.5 million in Q2 2013 (USD 53.4 million in Q1), EBITDA of USD 38.6 million (USD 33.9 million in Q1) and net profit of USD 29.4 million (USD 24.7 million in Q1). Revenue efficiency was 97.3% during the second quarter (91.2% in Q1). Contract backlog at the end of Q2 was approximately USD 860 million (approximately USD 466 million Q1). The Board approved a dividend distribution payable in Q3 of USD 1.00 per share. Link to comment Share on other sites More sharing options...
Gamecock-YT Posted August 15, 2013 Share Posted August 15, 2013 They pretty much hit it out of the park. Though 97% efficiency is pretty unsustainable. Hopefully someone asks about the new rig rumor during the conference call. Link to comment Share on other sites More sharing options...
BG2008 Posted August 15, 2013 Share Posted August 15, 2013 http://hugin.info/147077/R/1723212/574265.pdf Link to presentation Link to comment Share on other sites More sharing options...
DTEJD1997 Posted August 15, 2013 Author Share Posted August 15, 2013 Yet another good quarter... Net earnings of almost $1/share. Cash flow of about $1.30/share. Debt paid down a bit, balance sheet is improving. DIVIDEND OF $1/SHARE! Uptime of about 97% for the quarter. This is good, very good, and probably can't be kept at this level...but I could see them doing mid 90's with just a LITTLE bit of good luck. Future contracts look good, extending time & raising rates. This is much more solid investment than it was 7 months ago. Stock is up, which is especially nice on a heavy down day. However, I just can't understand why this is moving quicker/further. I would think AWLCF should be trading for about $30/share, EASILY. Link to comment Share on other sites More sharing options...
Hielko Posted August 15, 2013 Share Posted August 15, 2013 Lets hope it stays at the current levels, want to reinvest those dividends :) Link to comment Share on other sites More sharing options...
BG2008 Posted August 16, 2013 Share Posted August 16, 2013 This is from my broker - Technically, the stock is really trading at $20.40 today if you include the $1ish dividend shareholders are entitled to receive as of yesterday. "On 8/15/13, AWLCF announced a regular quarterly cash dividend of $1.00 per share, payable on 9/20/13 to shareholders, with an ex-dividend date of 8/16/13." This is different than the company's presentation "Share will trade ex-dividend on 21st August 2013, the record date will be 23rd August" Link to comment Share on other sites More sharing options...
Olmsted Posted August 17, 2013 Share Posted August 17, 2013 Took the time to listen to the conference call. Got some minor additional details here and there. As we already knew, the 98% rig uptime is not repeatable. Apparently it was actually due to a shortage of helicopter lift - which meant they had to delay maintenance projects. So I'd think we should not be surprised at a much lower uptime next quarter when they catch up on those. Management's "steady-state" target is the low 90s. Management sounded pretty disciplined when talking about "growth opportunities." Said they "will evaluate growth opportunities on a case-by-case basis." Until such an opportunity presents itself, the focus is on operating efficiency and free cash flow. Any growth opportunities would be assessed on its ability to create value for shareholders. They gave the impression that they would use a high bar when judging this. They gave some updates on the UK rig market. It sounds tight, with only two rigs up for charter after 2014. One of those is theirs. They talked about how the UK's regulatory regime, and said it is strict enough and expensive enough to get certified, to discourage relocating rigs from elsewhere in the world. In response to an analyst question, management reiterated that they had no pre-commitment to a dividend. As we all know, the formula is basically all free cash above a $35m buffer. (Still, they have to smooth the results of this calculation somewhat, since $1/shr is just a bit too round of a number to be coincidental.) This still seems cheap, especially now that we have more clarity on future revenue with the Apache contract signed. Link to comment Share on other sites More sharing options...
siddharth18 Posted August 17, 2013 Share Posted August 17, 2013 For those wanting to buy Awilco in Oslo Stock Exchange: Fidelity International Investments allows trading in Norway stock exchange. The cost is 160 NOK (~$27) each way to trade plus 1% to convert currency each way from USD to NOK and NOK to USD. So basically $54 + 2% in total. Regarding dividend, their brochure says 1% of principal but their rep said they don't charge anything. I messaged them and I'm waiting to get the final answer. EDIT: I confirmed - Fidelity doesn't charge any fees for receiving dividends. So OTC has cheaper trading but less liquidity and Oslo is more expensive but has more liquidity. Ultimately depends on how much you're looking to invest. https://www.fidelity.com/stock-trading/international-stock-trading Link to comment Share on other sites More sharing options...
BG2008 Posted August 19, 2013 Share Posted August 19, 2013 Reference is made to the second quarter 2013 report released on 15 August 2013. Awilco Drilling PLC will be trading ex-dividend of a cash dividend of US$1.00 per share on 21 August 2013. The record date is 23 August 2013 and the dividend will be paid on or about 20 September 2013. Aberdeen, 19 August 2013 For further information please contact: Jon Oliver Bryce, CEO Phone: +44 1224 737900 Cathrine Haavind, IR Manager Phone: +47 93 42 84 64 Link to comment Share on other sites More sharing options...
siddharth18 Posted August 19, 2013 Share Posted August 19, 2013 Reference is made to the second quarter 2013 report released on 15 August 2013. Awilco Drilling PLC will be trading ex-dividend of a cash dividend of US$1.00 per share on 21 August 2013. The record date is 23 August 2013 and the dividend will be paid on or about 20 September 2013. Aberdeen, 19 August 2013 For further information please contact: Jon Oliver Bryce, CEO Phone: +44 1224 737900 Cathrine Haavind, IR Manager Phone: +47 93 42 84 64 My broker says: On 8/15/13, AWLCF announced a regular quarterly cash dividend of $1.00 per share, payable on 9/20/13 to shareholders, with an ex-dividend date of 8/16/13 Link to comment Share on other sites More sharing options...
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