Friday, March 7, 2014
- YPF says Q4 profit surged 88% to 1.9B Argentine pesos ($241M) on higher revenue from sales and production, beating analysts’ estimates.
- YPF also says it boosted crude production by 6.3% Y/Y while natural gas output rose 10.2%.
- YPF produces ~35% of Argentina's oil and gas and accounts for more than half of the fuel sold in the country.
- Earlier this week, YPF said it signed two contracts totaling ~$1.2B to lease 15 drilling rigs to develop Vaca Muerta, which contains an estimated 27B barrels of shale oil; Helmerich & Payne (HP) will provide 10 of the rigs.
- Penn West Petroleum (PWE +2%) is on the rise despite reporting a Q4 loss of C$1.49/share, mainly due to C$742M in impairment charges, as investors seem willing to wait past the early stages of a turnaround with a new focus on its industry-leading light-oil position in western Canada.
- Backing out the loss, funds flow of $0.44/share was 29% lower than $0.62 reported in the year-ago quarter mostly due to asset sales completed over the past year, as well as a shrinking capital budget.
- A shrinking asset meant lower production volumes; in Q4, production was ~124K boe/day, down 19% Y/Y.
- Forecasts 2014 output of 101K-106K boe/day, with a planned $900M capital budget.
- BPZ Resources (BPZ +0.2%) is reiterated with a Buy rating and $6 price target at Wunderlich, which views recent test results at BPZ's Albacora A-19D well as positive news.
- The well tested at 2,106 bbl/day, in-line with the first new well A-18D, which tested at a 24-hour initial rate of 2,250 bbl/day, which the firm says shows the Albacora field is delivering consistent flow rate and the reservoir is behaving predictably.
- Q4 results were roughly in-line but the firm notes a big improvement in cost structure, as cash costs came in at $33/bbl vs. expectations of $54/bbl, and cash margin was $67/bbl vs. $33/bbl actual; the firm says BPZ could start going earnings-positive before Q1 2015 if the trend continues and stabilizes.
- Ambarella (AMBA -5.4%) guided on its CC (transcript) for FQ1 revenue of $39M-$41M, in-line with a $40M consensus. However, the company also forecast its gross margin would fall to 61%-63% from an FQ4 level of 64.1%.
- The reason: Amabarella expects a mix shift towards the lower-margin Chinese security camera market, as sports camera chip sales decline Y/Y due to the launch of three GoPro camera a year ago. Security and sports camera-related sales were roughly even at the end of FQ4.
- In addition, automotive chip sales are expected to be down Y/Y in FQ1, and broadcast infrastructure chip sales are expected to remain under pressure in FY15 (ends Jan. '15). Automotive growth is still expected for FY15
- FQ4 gross margin rose 80 bps Y/Y, as growing sales of Ambarella's higher-margin A7LA and A7LS video-processing SoCs (used in sports/automotive cameras) offset slumping high-margin infrastructure SoC sales. Opex rose 22% Y/Y to $19.9M, trailing revenue growth of 27%.
- FQ4 results, PR
- Core earnings of $0.70 per share fell from $0.83 in Q3.
- Book value per share of $15.27 fell from $16.81, but the decline includes the payout of $2.35 (cash and stock) in dividends. The stock portion of the dividend boosted the share count to 26.85M shares from 24.3M.
- Net interest spread of 2.15% falls 13 basis points from Q3. CPR of 5% dips from 5.3%. Leverage drops to 6.4x (6.9x when adjusted for TBA position) from 8.1x (9x when adjusted for TBA position).
- Company continues to move portfolio more into non-agency holdings which account for 15% of exposure at year's end vs. 8% at the end of Q3.
- WMC -0.9% premarket to $16.19.
- CC at 11 ET
- Press release, Q4 results
- W&T Offshore (WTI) -5.6% premarket after Q4 earnings swung to a loss despite rising production, due to deferred debt costs, an unplanned workover and higher than expected depreciation, depletion and amortization.
- The unplanned operation on the A-12 well at the offshore Mahogany field in Ship Shoal Block 349 to resolve "a casing pressure issue" resulted in additional Q4 cost of $13.6M.
- WTI produced an average of 56.1K boe/day during Q4, a 14.4% Y/Y increase; 35% was oil and 54% was natural gas.
- Sees Q1 total production of 4.3M-4.7M boe; sees FY 2014 total production of 17.1M-18.9M boe.
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- Harvard Apparatus Regenerative Technology's (HART) Q4 loss per share was $0.34 vs $0.25 a year earlier.
- Company recognizes revenue of $22,000.
- HART's net loss was $2.6M vs $2M a year earlier.
- In December, a fifth successful regenerated human trachea transplant surgery took place.
- Early this year, HART held a meeting with the FDA to help the company towards starting trials for its regenerated trachea. The firm has also requested orphan biologics status for the product.
- HART had cash on hand of $14M at the end of 2013 and no debt.
- HART was spun off from Harvard Bioscience on November 1. (PR)
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