Oil Search Ltd

OSH Details

Drilling update, strong 4Q 2017 Production & FY18 Production Guidance: Oil Search Ltd (ASX: OSH) has updated the market about its P’nyang South 2 ST1 well that has got gas in good-quality Toro and Digimu sands, and the Emuk sand was found to be water-bearing. An independent recertification of the field’s 1C and 2C contingent gas resource is underway and expected to be completed in the second quarter of 2018. On the other hand, for the fourth quarter 2017, the company has reported the production of 7.59 mmboe taking full year production to 30.31 mmboe. This was at the upper end of the company’s guidance range and an all-time record for OSH. Further, in the first half of 2018, the company has planned the modifications to the Hides Gas Conditioning Plant to further optimise production rates upstream. OSH is expecting to get production benefits from this in the second half of the year. The work on tying in the Angore A1 and A2 wells to existing Project processing facilities is ongoing, and the wells are expected to come online in 2019.
 

Fourth Quarter 2017 Production (Source: Company Reports)
 
Moreover, in the December quarter, PNG LNG production net to the company was 6.08 mmboe. OSH operated PNG oil and gas fields also performed well and contributed 1.51 mmboe net to OSH. The total revenue grew 2% in the fourth quarter to US$389.0 million due to a strong improvement in hydrocarbon prices, partially offset by lower product sales. Additionally, OSH in FY 18 has been expecting the full year production to be in the range of 28.5 – 30.5 mmboe. Meanwhile, OSH stock has fallen 7.40% in one month as on February 12, 2018. Based on the foregoing in view that the stock can benefit from organic growth profile, we give a “Hold” recommendation at the current price of $7.36
 

OSH Daily Chart (Source: Thomson Reuters)
 

Corporate Travel Management Ltd

CTD Details

FY18 Guidance: Corporate Travel Management Ltd (ASX: CTD) expects its FY18 underlying EBITDA to be in the range of AUD$120 -125m, which is 22.0% -27.5% growth on the prior corresponding period. Moreover, the company in FY 17 has reported 43% growth in the underlying EBITDA to $98.6m as the client wins and retentions were at historically high levels.
 

FY18 Initiatives (Source: Company Reports)
 
The favorable UK and US tax rates and fragmented global corporate travel market are expected to boost the earnings in the long run. CTD is also expected to deliver strong 1H18 result that is due on 21 February 2018. Meanwhile, CTD stock has fallen 6.86% in three months as on February 12, 2018 and we give a “Hold” recommendation on the stock at the current price of $20.76


CTD Daily Chart (Source: Thomson Reuters)
 

Volpara Health Technologies Ltd

VHT Details

+200% ARR growth target for FY18: Digital Health company, Volpara Health Technologies Ltd (ASX: VHT) in January 2018, has added the Total Contract Value (TCV) of NZ$1.2m, due to the strong sales momentum in the previous quarter, and represents a 400% increase on TCV added in January 2017 (NZ$). The TCV for the YTD is NZ$8.3m, which is an increase of 201% over FY17. Annual Recurring Revenue (ARR) grew to over NZ$3m, from NZ$1.1m at the end of FY17. Therefore, it is expected to exceed 200% ARR growth target for FY18. The operating costs in FY18 are expected to remain similar to FY17. Meanwhile, VHT stock has risen 12.32% in three months as on February 12, 2018. The company got listed in 2016 only and had started selling direct and expanded onto the Cloud using a Software-as-a-Service (SaaS) model. However, the stock is already at a higher level and looks “Expensive” at the current price of $0.78
 

VHT Daily Chart (Source: Thomson Reuters)
 

Skycity Entertainment Group Ltd

SKC Details

Positive Outlook: SKYCITY Entertainment Group Ltd (ASX: SKC) expects to achieve modest growth in Group EBITDA in FY18 on the prior corresponding period. The main drivers of the second half FY 18 performance include the growth in combined NZ properties, improved performance in combined Australian properties and on-going recovery in IB, offset by increased corporate costs (primarily IT investment).
 

1H18 Result (Source: Company Reports)
 
Moreover, in New Zealand, Auckland is expected to post the earnings growth in 2H18 on the pcp having a focus on new initiatives to improve the operating performance of the business and deliver efficiencies. Hamilton is expected to post modest earnings growth in 2H18 on the pcp. In Australia, Adelaide is expected to have the earnings growth in 2H18 on the pcp due to increased premium gaming activity, margin improvements and the property cycling a weaker comparative period. The disruption from early works and main construction works is expected to continue to impact the property. Darwin is expected to post improved performance in 2H18 on the pcp due to the property cycling a weaker comparative period. Meanwhile, SKC stock has risen 6.82% in three months as on February 12, 2018 and is trading at a high level. However, as of now, we give an “Expensive” recommendation on the stock at the current price of $3.76
 

SKC Daily Chart (Source: Thomson Reuters)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.