Genel Energy Plc and TP ICAP Plc Performance In The Q3FY19

  • Nov 03, 2019 GMT
  • Team Kalkine
Genel Energy Plc and TP ICAP Plc Performance In The Q3FY19

Genel Energy Plc

Genel Energy Plc (GENL) is engaged in oil and gas exploration and production in the Kurdistan Region of Iraq, where the company is the largest holder of reserves and resources. The London Stock Exchange-traded Genel Energy Plc is one of the largest independent oil producers on the exchange. The company has interests in approximately two producing fields, Taq Taq and Tawke. The company’s operations are differentiated in three operating segments: Oil, Miran/Bina Bawi and Exploration. As on June 22, 2011, shares of the GENL were admitted to the main market of the London Stock Exchange. The outstanding market capitalisation of the company stood at £529.8m, which ranks it among the small-cap company listed on the London Bourse.

Trading Update- Q3FY19

As on November 01, 2019, the group reported its trading update for the third quarter ended as on September 30, 2019. During the period under review, Net production averaged 36,530 bopd in the first nine months of 2019, an increase of 12% year-on-year, in line with guidance. Production in the third quarter averaged at 34,720 bopd against 33,700 bopd reported in the Q3FY18. 11 wells have been placed on production in 2019, with another five wells likely to contribute to production in the fourth quarter of FY19.

Production and sales by asset during Q3 2019 were as follows:

Source: Company filing

Tawke PSC’s production during the Q3FY19 averaged at 119,760 bopd against 113,100 bopd reported in the third quarter of 2018, including a contribution of 51,940 bopd from the Peshkabir field. Production was affected by a workover of side-track of the P-3 well and the P-2 well and at the Peshkabir field, with the latter well estimated to come on stream very soon.

Taq Taq field production during the period under review averaged at 10,870 bopd against 12,200 bopd reported in the third quarter of FY18.

At the end of the Q3FY19, the group's free cash flow (year to date) stood at $121m, and capital expenditure stood at $110m. Its cash position at the end of the Q3FY19 was at $413m against $281m reported in the year-over period.

Recently, on September 05, 2019, Genel Energy Plc confirmed the signing of the contract between OILSERV and Chevron Sarta. As per the agreement, both companies will construct, install, operate and maintain 20,000 bopd CPF (central processing facility).

Share Performance

On a YoY basis, shares of the GENL have plummeted more than 12%, but were up by approximately 8% on a YTD basis and bagged around 3% in the past one month. In the past 52-weeks, shares of the company have registered a high of GBX 233.79 and a low of GBX 151.20, respectively.

As on November 01, 2019 at 11:53 AM GMT, shares of the GENL traded 5 points or 2.6% higher at GBX 195.8 and at that trading level, the stocks quoted 16.2% below the 52w high price level and 44% above the 52w low price level respectively.

At the reported price level, shares of the company traded above its short-term support levels of 30-day and 50-day simple moving average price but traded slightly below the long-term support level of the 200-day simple moving average price level — the 14-day Relative Strength Index in the stock hovered in the neutral zone.

TP ICAP Plc

London Stock Exchange-traded TP ICAP Plc is an interdealer broker, based out in London, the United Kingdom. As on December 19, 2006, shares of the group were admitted to the main market of the London Stock Exchange. The outstanding market capitalisation of the group stood at £1.93bn with 563.34m shares are in issue. The group is also a constituent of the broader mid-cap index FTSE 250.

Trading Update- Q3FY19

In the exchange filing made by the group as on November 01, 2019, it reported its trading update for the third quarter ended as on November 01, 2019. During the three months under consideration, the group’s sales growth reflected favourable market conditions for the period as revenue surged by 17% to £478m from £408m reported in the year-ago period and 13% on a constant currency basis.

On a year-to-date basis, group’s revenue increased 6% to £1,400m against £1,318m reported in the year-over period, and on a constant currency basis the group’s revenue improved by 3%, respectively.

Division Performance

During the period under review, group's global broking revenue surged by 10% on a YoY basis, however, on a year-to-date basis, revenue from aforementioned division plummeted slumped 1%, with decent performance in rates, which was primarily offset by poor credit and equities performance.

Group’s energy and commodities vertical was firm as revenue leapt-up by 24% against the year-ago period and surged by 13% on a year-to-date basis, driven by selective hires and acquisitions, with favourable macro conditions across the majority of the group’s Energy and Commodities products, primarily Oil.

Its institutional services surged by 38% to £11m against £8m reported in the year-over period, as it continued to benefit from new hires and expanding its client base.

Data and Analytics segment’s revenue surged by 9% to £35m from £32m reported in the corresponding quarter of the previous financial year, led by strategic initiatives to launch new products and deepening the segment’s client base.

Full-year Guidance

Despite a decent performance the group handed in the third quarter of the FY19, full-year guidance remains unchanged at low single-digit revenue increase on a constant currency basis. Also, the group is exposed to the geopolitical uncertainties, which could dent its transaction volume in the fourth quarter of the FY19.

Share Performance

In the past one year, shares of the TCAP handed a price return of 18.24% to its shareholders, surging approximately 14% in the year-to-date basis, and adding nearly 9.31% in the past three months. As on November 01, 2019, before the market close at 12:09 PM GMT, its shares traded 13.2 points or 3.85% higher at GBX 356.1 and in the year-over period, its shares have registered a fresh 52w high in 1st November session, while its 52w low stood at GBX 265.40.

At the reported trading level, stocks of TCAP were well above its short-term and long-term support level of 50-days and 200-day simple moving average prices. The Moving Average Convergence Divergence is rising, with 12-day Exponential moving average quoted above the 26-day EMA and the MACD signal line hovered above the 9-day EMA, respectively.

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