Natl Oilwell Varco beats by $0.01, reports revs in-line
Reports Q1 (Mar) earnings of $1.40 per share, ex-$0.03 tax charge, $0.01 better than the Capital IQ Consensus of $1.39; revenues rose 8.9% year/year to $5.78 bln vs the $5.79 bln consensus.
- Operating profit for the quarter, excluding the transaction charges, was $880 million, or 15.2 percent of sales. Sequentially, first quarter operating profit decreased 10 percent, while year-over-year first quarter operating profit increased eight percent. Backlog for capital equipment orders for the Company's Rig Technology segment at March 31, 2014 was an all-time record of $16.35 billion, up one percent from the fourth quarter of 2013, and up 27 percent from the first quarter of 2013. New orders during the quarter were $2.33 billion, reflecting continued healthy demand for oilfield equipment.
- "Our $2.33 billion in new capital orders and record backlog demonstrate that demand for oilfield equipment remained high in the first quarter, as our customers continued to recognize National Oilwell Varco for our industry leading technology, our proven track record of project execution, and our leading aftermarket service. We are encouraged to see domestic land drilling and well service firms increasing activity, which is leading to increased demand for drilling and stimulation equipment to develop unconventional shales. Outside of the U.S., our investments in Latin America, Africa, the Middle East and Asia have laid a great foundation for continued growth." Williams added, "We are also pleased to be entering into the final stages of the previously announced spinoff of our distribution business to our shareholders, which we expect to complete during the second quarter."
Precision Drilling misses by $0.01, reports revs in-line
Reports Q1 (Mar) earnings of CAD$0.35 per share, CAD$0.01 worse than the Capital IQ Consensus Estimate of CAD$0.36; revenues rose 12.8% year/year to CAD$672.2 mln vs the CAD$666.34 mln consensus.
Earnings before income taxes, finance charges, foreign exchange, and depreciation and amortization this quarter were $237 million or 10% higher than the first quarter of 2013.
"Our adjusted EBITDA margin was 35% this quarter, compared to 36% in the first quarter of 2013. The decrease in adjusted EBITDA margin was mainly due to a decrease in the margins in our Completion and Production Services segment and increases in share based compensation accruals, which were $10 million this quarter."
"Our activity for the quarter, as measured by drilling rig utilization days, increased 3% in Canada, 16% in the U.S. and 38% internationally, compared to the first quarter of 2013."
Outlook: Our portfolio of term customer contracts provides a base level of activity and revenue and, as of April 25, 2014, we have term contracts in place for an average of 53 rigs in Canada, 53 in the U.S. and 11 internationally for the second quarter of 2014 and an average of 52 rig contracts in Canada, 45 in the U.S. and 12 internationally for the full year. In Canada, term contracted rigs normally generate 250 utilization days per year because of the seasonal nature of well site access. In most regions in the U.S. and internationally, term contracts normally generate 365 utilization days per year. In the U.S., our average active rig count in the quarter was 94 rigs, up 13 rigs over the first quarter in 2013 and up four rigs over the fourth quarter of 2014. We currently have 95 rigs active in the U.S.
Meda receives new bid from Mylan at SEK 145 a share
Meda has been approached anew by Mylan through an all-stock offer valued at SEK 145 a share, the Financial Times reported.
The offer was made in the last few days, following on the SEK 130-a-share offer made earlier this month.
The new bid values Meda at USD 9bn.
Trading in the Meda stock halted following a report that Mylan, the Pennsylvia, US-based entity, had made the new bid for the Swedish pharmaceutical company, the Dagens Industri reported. Mylan was reported to have already planned the bid on April 4, which Meda rejected. At the time, Paula Treutiger, head of investors relations, said the board had rejected the bid because it has strong faith in Meda as an independent company. The Meda stock was trading slightly below SEK 117 on 25 April before a rush to SEK 128.50 set off the trading halt.
Bert-Ake Eriksson, the Meda chairman, on a mandate from majority-stake owner Stena group, did not want to comment on the trading halt made today, Friday. “I know the reason for the trading halt, but I don’t want to comment now,” he told the Swedish-language newspaper.
Morgan Stanley’s Special Situations Group said in a recent weekly analysis that Meda probably was for sale at the right price, the newspaper reported, citing Direkt news agency. The fact that Meda confirmed the reports about Mylan’s first approach indicated as much, said the investment bank.
According to Morgan Stanley, a race within the specialty pharma industry and tax-inversion reasons are behind Mylan’s interest in Meda.
Market chatter says that Mylan is not the only player interested in Meda. Canadian pharmaceutical company Valeant could have approached the Swedish pharma company, Dagens Industri reported, citing no source. The fact that Meda’s former CEO Anders Lonner will take a place on the Valeant board could ease a deal. On Wednesday, Lonner was proposed to by the Valeant board. It may be in Lonner’s interest that Meda gets bought at a bid of SEK 145 a share; it would mean that Lonner’s holdings in Meda would be worth SEK 696m (USD 105.9m), which is up SEK 134m from Thursday’s valuation.
The Stena group has seen its holdings in Meda increase in value thanks to Mylan’s interest. A SEK 145-a-share bid would value Stena’s holdings around SEK 10bn, compared with SEK 8bn on 24 April.
Source Dagens Industri, Financial Times
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