AUS
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IND
Summary
- Newmark Security added two new clients in the US.
- Newmark Security expects revenue for FY2020 to be slightly lower than FY2019.
- Oilex LTD secured a settlement agreement for the contract area JPDA 06-103.
- Oilex LTD issued new shares to raise £0.25 million.
NWT is an industrials stock, and OEX is an energy stock. Based on the 1-year performance NWT was up by close to 74.58 percent, whereas OEX was down by close to 27.00 percent, respectively (as on 7 August 2020 before the market close at 11:50 AM GMT+1). Let's skim the recent updates of the two companies to understand the stock better.
Newmark Security PLC (LON:NWT) - Launched new corporate and investor website
Newmark Security PLC is a UK based company that provides services in the security and data sector. The Company has two business divisions Safetell and Grosvenor Technology. Safetell provides asset protection solution, and Grosvenor Technology serves access control and human capital management. Newmark has operations in the UK and US, and it is included in the FTSE AIM All-Share index.
New Customers won
On 7 August 2020, the Company stated that it won two new clients in the US. One of the clients is a human capital management company that deals in HR and payroll, where the Company would provide the GT-4 timeclock. The contract is for three years and has a contract value of close to USD 1 million. The second client is the existing user of the full suite HCM solution, and Newmark would now supply GT-10. As per the management's estimate, the second contract could be for two to three years with a contract value of close to USD 3.8 million.
Trading update (for the year ended 30 April 2020) as reported on 20 May 2020
In FY19, Newmark's performance was as per the management's expectation, and it experienced subdued business activity in April and onwards due to the pandemic. The Company expects the FY20 revenue to be slightly lower as compared to the FY19 revenue. The Company highlighted that the results would have better if the pandemic did not happen and the business would have continued as usual in April 2020. The operations were more disrupted in the UK as compared to the US. Grosvenor Technology that offers data and security services experienced growth that was underpinned by the strong human capital management (HCM) activities and launch of GT clocks website. Safetell, the business division offers asset protection, underwent restructuring in FY20 and started to show some uptick in the business activity before it was hit by the pandemic. On 11 June 2020, the Company launched a new corporate and investor website.
Share Price Performance Analysis
1-Year Chart as on August-7-2020, before the market close (Source: EODHD/Others, Thomson Reuters)
Newmark Security PLC's shares were trading at GBX 1.35 up by about 9.76 percent from the previous closing price (as on 7 August 2020 before the market close at 11:50 AM GMT+1). NWT's 52-week High and Low were GBX 1.65 and GBX 0.60, respectively. The Company had a market capitalization of £5.74 million.
Business Outlook
The Company refrained from providing any guidance on the business activity and stated that it is difficult to assess the impact of the Covid-19 on the business. The Company is optimistic about the demand for its products in the US, and it is hopeful of the investment it has made into developing next-generation timeclocks. The Company expects some replacement of the old product with new technologies for some of the existing clients.
Oilex LTD (LON:OEX) – Sale of Cooper-Eromanga Basin project to complete in September 2020
Oilex LTD is an Australia based energy company that is engaged in the exploration of oil and gas projects. The Company has an interest in projects in Australia, the UK and India. Oilex is included in the FTSE AIM All-Share index.
Settlement Agreement secured for the contract area JPDA 06-103
On 7 August 2020, the Company secured a settlement agreement for Joint Venture Participants in Joint Petroleum Development Area (JPDA) 06-103. The contract covers an area of 1,870 km2 in the Flamingo Trough portion of the Northern Bonaparte Basin, Timor Sea. In 2006, Oilex started a production sharing contract (PSC) as an operator of the contract in JV, and the Company submitted the request to terminate the PSC in 2013. However, in 2015, Autoridade Nacional Do Petroleo E Minerais (ANPM) issued a notice and demanded USD 17.0 million as the cost of exploration activities that were not undertaken in 2013. Under the new agreement, Oilex would pay USD 800,000 to Autoridade Nacional Do Petroleo E Minerais (ANPM) in 2021 and 2022. The Company got an unsecured borrowing facility from the JV partners that have provided the option to extend the payment to 2023 and 2024.
June 2020 Quarterly report as reported on 31 July 2020
Oilex plans to drill two vertical wells at Cambay Field in Gujarat, India, as soon it secures the funding and receives the nod from Gujarat State Petroleum Corporation (GSPC). The Company received a payment of USD 0.8 million from GSPC and expects a payment of approximately USD 0.10 million in August 2020. The Company entered a sale and purchase agreement for Cooper-Eromanga Basin with Armour Energy Limited. Cordillo Energy Pty Ltd, a subsidiary of the Company, won the bid for Block CO2019-C (PELA677). During the quarter, the Company advanced the sale of its 40 percent interest in Bhandut, and it received payment of USD 0.05 million from GSPC and anticipates a payment of USD 13,000 in August 2020.
Debt Restructure and Equity Issue
On 31 July 2020, the Company announced that it raised £0.25 million via an issue of 312,500,000 new shares. The shares were issued at 0.08 pence per share. The Company also extended the date of loan repayment from 1 August 2020 to 31 October 2020. The loan is for £125,000 at 5 percent interest. An option has been added where the loan can be converted to 113,636,364 ordinary shares at £0.0011 per option. The option expiry date is 29 January 2021, and the exercise of the option is subject to shareholder's approval.
Share Price Performance Analysis
1-Year Chart as on August-7-2020, before the market close (Source: EODHD/Others, Thomson Reuters)
Oilex LTD's shares were trading at GBX 0.095 up by about 11.76 percent from the previous closing price (as on 7 August 2020 before the market close at 11:50 AM GMT+1). OEX's 52-week High and Low were GBX 0.345 and GBX 0.06, respectively. The Company had a market capitalization of AUD7.61 million.
Business Outlook
The Company stated that it is very positive over the favourable outcome of the JPDA 06-103 contract area, and it would now focus on future opportunities. The Company has raised capital and negotiated the loan term that would provide liquidity headroom. Oilex is currently working on the sale of Bhandut project in India and spin-out of Cooper Basin project in Australia. The sale of the Cooper-Eromanga Basin to Armour Energy is expected to be complete by 15 September 2020. Oilex is confident about the advancement of the Cambay gas project in India.
