Market Update & Important Indicators
U.S. stocks rose to highs Friday afternoon as the Eurozone approved a four-month extension on Greece's bailout. The Dow Jones Industrial Average rose 154.67 points, or 0.9%, to 18140.4 and the S&P 500 gained 12.85 points, or 0.6%, to 2110.3, with both indexes hitting intraday records. The Nasdaq Composite added 31.27 points, or 0.6%, to 4956.0, its eighth-straight rise.
European stocks rose for the fourth consecutive day to close at a more than seven-year high, as also on the back of a likely agreement between Greece eased and Eurozone finance ministers. The Stoxx Europe 600 edged up 0.2%, to 382.3, its highest level since November 2007.
Asian stocks rose Friday, with Japan's benchmark index extending gains to a new 15-year high on prospects for better earnings. Many markets closed for the Lunar New Year holiday. The Nikkei Stock Average rose 0.4% to 18332.30, the highest level since May 2000, while China, Hong Kong, Singapore, South Korea and Taiwan were closed for celebrations.
Metals on the LME closed down across the board on Friday. Copper was down 1.0% to US$2.59/lb and zinc lost 1.5% to US$0.92/lb. Gold was also down, it fell 0.3% to US$1204/oz. Iron ore ticked up 0.7% to US$ 63.44/dmt on thin trading during the Chinese New Year break and WTI crude fell 1.6% to US$50.34/bbl.
In This Issue
Pacific Energy (PEA)
PEA has reported 1H15 results.
First pass take-aways:
• Revenue of $23.0m was close to our forecast but earnings came in below expectations, largely relating to:
o A greater level of general and preventative maintenance (PEA estimate the increased cost to be $1.0m on prior)
o The impact of rectification works of the waste heat recovery system by the supplier which deferred the roll out of the technology at Garden and Moolart Well
• Balance sheet remains solid; ND/E 21.4% and aggregate finance facility limit of $63m, drawn to $39m
• PEA has signed the contract to convert the 44MW Tropicana power station from diesel to gas which will provide uplift to future earnings but require additional capex which we believe can be comfortably funded from cash flow and debt facility
• Full year FY15 EBITDA guidance reduced by $1m to $32 – 34m due to first half performance
• The Company expects to return to earnings growth in FY16
Recent Contacts & Presentations
Northern Star (NST), Saracen (SAR), Doray (DRM), Resolute (RSG), Gold Road (GOR), Regis (RRL), Independence Group (IGO), Energia Minerals (EMX), OBJ Limited (OBJ), Gage Roads (GRB), Rewardle (RXH), Doray (DRM), Alexium (AJX), Orbital (OEC), IMF Bentham (IMF), Metals X (MLX), Pura Vida (PVD), Image Resources (IMA), Tangiers (TPT), ABM Resources (ABU), Centaurus (CTM), Imdex (IMD), Rox (RXL)