Latest Updates on Eco (Atlantic) Oil & Gas Ltd, Acacia Mining Plc and SSE Plc

Latest Updates on Eco (Atlantic) Oil & Gas Ltd, Acacia Mining Plc and SSE Plc

 Eco (Atlantic) Oil & Gas Ltd

Eco (Atlantic) Oil & Gas Ltd (ECO) is Toronto Canada domiciled upstream Oil & Gas exploration company. The Company has six drilling and production interests, one in Guyana in South America and five in Namibia in West Africa. The Company has strategic working relationships with several prominent Oil & Gas entities, namely Tullow Oil, NAMCO, AziNam, African Oil Corporation and Total Energy. It has consecutively been ranked by TSX Venture 50 (ranking is done by TMX group of top 50 upcoming companies on Canadian TSX Venture Exchange) as one of the top five performing upstream Oil & Gas companies for the past two years (5th in 2018 and 2nd in 2019).

The Company is duel listed both on the AIM, at the London stock exchange with ticker name ECO, and at the TSX venture exchange of Canada with the ticker name EOG.

Recent News

On 12 August 2019, the Company came out with a trading update with the news that it has discovered a major oil reserve off the coast of Guyana in its Orinduik exploration block. The discovery was made by Eco Atlantic Oil & Gas working alongside partners Tullow and the total oil discovered in the well was of very high quality.

Soon after the news broke, the trading on this counter at the London Stock Exchange was brisk with investors doubling their investments as the price of this stock rocketed 104 per cent in the first four hours of trade.

Financial Update from Full-year financial statement for FY 2019 ending March 2019

Source – Company Annual report publication for FY 2019 ended 31 March 2019

The Company for its year ended 31 March 2019 reported revenue of $16.948 million compared to revenue of $1.333 million for year period ended 31 March 2018. The net profit for the fiscal year ended 31 March 2019 was $4.173 million, whereas it was a loss of $8.356 million for the year ended 31 March 2018. The higher profits for the year was on account of higher revenue from option agreements and interest income. The earnings per share (diluted) of 0.03 cents was reported for the FY period ended 31 March 2019, whereas for the period ended 31 March 2018, it was a loss of 0.06 cents per share.

The share price performance of Eco (Atlantic) Oil & Gas Ltd

Daily Chart as on 12 August 2019, before the market close (Source: Thomson Reuters)

On 12 August 2019, at the time of writing (before the market close, GMT 11.22 am), ECO shares were trading at GBX 136.05, up by 100.29 per cent against the previous day’s closing price of GBX 68.00. The stock’s 52- week High is GBX 143.00, and 52-week Low is GBX 31.7. The total market capitalization of the Company is £129.50 million.

Outlook

The Company has a track record of being one of the outperformers in its class of companies. The recent Oil discovery puts the Company in high gear. Though the Company is yet to start production, its success rate in oil drilling and discoveries has given investors enough reasons to cheer.

Acacia Mining PLC

Acacia Mining PLC (ACA) is the United Kingdom headquartered precious metal mining and refining company with mining interests in Tanzania. The Company has three mine leases in Tanzania namely, the Bulyanhulu mines, The Buzwagi mines and the North Mara mines. The Company’s majority shareholder (63.9 %) is Barrick Gold, the Toronto Canada based world largest gold producer.

The company’s stocks are duel listed, first at the Der es Salaam Stock exchange in Tanzania and second at the London stock exchange where it trades with the ticker name ACA. The stock is a constituent of the FTSE 250 index.

Recent news update

The Company on 12 August 2019 announced that it had received a letter from Tanzania’s ministry of minerals, whereby the ban imposed on its North Mara mines from exporting Dore gold bars out of the country has been lifted. The Company had been embroiled in a legal tussle with the Government of Tanzania, as the latter sought to keep the processing of the minerals within the country in order to protect and encourage local employment and had banned any unprocessed mineral export out of the country. All the three mines of the Company were affected by this ban, however, now the North Mara mines have been given a concession as it exports Dore bars instead of unprocessed ores.

Financial update from Annual report for FY 2018

Source – Company Annual report publication for FY 2018 ended 31 December 2018

The Company for its fiscal year ending 31 December 2018 reported revenues of $633.78 million compared to revenue of $751.515 million for the corresponding prior-year period ended 31 December 2017. It reported an operating profit of $108.554 million for the year ended 31 December 2018, compared to an operating loss of $699.203 million for the year ended 31 December 2017. The net profit for the fiscal year ended 31 December 2018 was $58.866 million whereas it was a net loss of $707.394 million for the year ended 31 December 2017. The loss last year was on account of an $850 million worth of impairment charges. Earnings per share (diluted) were 14.4 cents for the full year ended 31 December 2018, whereas it was a loss of 172.5 pence per share for the period ended 31 December 2017.

The share price performance of Acacia Mining PLC

Daily Chart as on 12 August 2019, before the market closed (Source: Thomson Reuters)

On 12 August 2019, at the time of writing (before the market closed, GMT 1.37 pm), ACA shares were trading at GBX 249.42, up by 1.72 per cent against the previous day’s closing price of GBX 245.20. The stock’s 52- week High is GBX 268.2, and 52-week Low is GBX 93.56. The total market capitalization of the Company is around £1.02 billion.

Outlook

The export concession given by the Tanzanian government to the Company will give a much-needed breather to the Company as it was not able to generate revenue. The takeover by Barrick Gold of the rest of the 30.1 per cent stake in the Company will also give the Company the strength to survive the Tanzanian Government’s ban.

The Company, however, is still not out of the woods, it must put up metal processing units at both its Bulyanhulu and The Buzwagi mines if it has to get back to full production. There is one silver lining for the Company though that the international prices of gold are rising, which would translate into higher revenues from its limited production.

SSE Plc

SSE Plc (SSE) is a Scotland based energy production and distribution company. It has a combined electricity generation portfolio from both non-renewable and renewable resources. The Company is also engaged in the Natural gas exploration and production, gas storage, energy contracting, telecommunication and retail electricity connection and metering activities.

The Company has its listing on the London Stock Exchange, and its stocks trade with the ticker name SSE. The stock is a component of the FTSE 100 index.

Recent News Update

The Company on 12 August 2019, updated that it is in talks with various bidders to hive off its United Kingdom-based retail electricity distribution arm called the SSE energy services. The Company confirmed that it is in an advanced stage of negotiation with Ovo group for the possible sale.

The market reaction to the news was lackluster, the stock jumped 1.11 per cent till mid-day on 12 August 2019 after the news broke.

Financial update from Annual report for FY 2019

Source – Company Annual report publication for FY 2019 ended 31 March 2019

The Company for its financial year ended 31 March 2019 reported revenues of £7.331 billion compared to revenue of £27.250 billion for the corresponding prior-year ended 31 March 2018. It reported a gross profit of £1.545 billion for the year ended 31 March 2019, compared to a gross profit of £2.276 billion for the year ended 31 March 2018. The net profit for its financial year ended 31 March 2019 was £1.455 billion whereas it was a net profit of £920.1 million for the year ended 31 March 2018. Earnings per share (diluted) were 137.9 pence for the full year ended 31 March 2019, whereas it was a gain of 81.2 pence per share for the period ended 31 March 2018. (all figures dealt with are after exceptional items & re-measurements)

The share price performance of SSE Plc

Daily Chart as on 12 August 2019, before the market close (Source: Thomson Reuters)

On 12 August 2019, at the time of writing (before the market close, GMT 3.39 pm), SSE shares were trading at GBX 1,109.00, up by 1.32 per cent against the previous day’s closing price of GBX 1,094.5. The stock’s 52- week High is GBX 1,287.00, and 52-week Low is GBX 997.8. The total market capitalization of the Company is around £11.34 billion.

Outlook

The Company by hiving off its electricity distribution arm is trying to consolidate its position in its core business areas of electricity generation and natural gas production and distribution. This exercise will help the Company focus its resources on becoming a power producer and retracting from the less lucrative retail electricity distribution business. The move will add value to the Company in mid to long term.

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