Tuesday 08 March 2016 by FIIG Research Company updates

Company updates – 360, BHP, CBL, Emeco, Fortescue and Glencore

News in the past week: 360 Capital delivered a solid 1H16 result, Moody’s downgraded BHP Billiton, CBL Corporation released strong FY15 results, Emeco reported on 1H16, Fortescue bond prices have rallied on recent events and Glencore increases debt reduction target along with FY15 result

360 Capital delivers a solid 1H16 result

Published 4 March 2016

360 Capital has delivered a solid result for 1H16, highlighted by strong growth in its funds management and co-investment revenues, as well as the full repayment of bank debt during the period. Total revenue is up 18.7% to $14.6m. Total co-investment revenue up 48.3% to $8.6m and funds management revenue is up 60% to $4.8m. Read more

BHP downgraded by Moody’s, reaches agreement on dam disaster

Published 7 March 2016

After taking steps to protect its balance sheet, BHP has suffered a two notch downgrade from Moody’s and its Brazilian joint venture Samarco has entered into a compensation agreement for the dam disaster. With reference to the downgrade, Moody’s has cited the deterioration in the company's earnings and cashflow in its rating decision. Further, on 2 March, BHP and Vale’s joint venture Samarco reached agreement with Brazilian authorities for the restoration of environment and communities affected by the Samarco dam failure on 5 November 2015. Read more

CBL Corporation releases strong FY15 results, with improved credit profile

Published 7 March 2016

The group reported strong performance for FY15, surpassing the guidance given as part of its October IPO. The equity raising was credit positive bringing $90m of new funds into the business and increasing the group’s regulatory capital ratios. Further, the group’s main insurance subsidiary, CBL Insurance Limited was upgraded by credit rating agency, AM Best during the period. Read more

Emeco 1H16 - Improved EBITDA margin not enough to address credit concerns

Published 4 March 2016

Emeco has released its 1H16 results. Positive results include: the improvement in the EBITDA margin due to cost reductions and strong performances in certain regions. However, revenue has not grown, free cashflow remains negative, the Canadian oil sands business has deteriorated and the company remains excessively leveraged. Following the result, we assess the liquidity position of the company and options for bondholders. Read more

Fortescue’s fantastic 24 hours

Published 8 March 2016

After an 18.5% increase in iron ore prices Monday night, Fortescue announced it has signed a non binding agreement with Brazilian miner Vale for investment and product blending opportunities. Bond prices rallied around USD5 on the events. Vale is the world’s largest producer of iron ore and is considered one of the ‘Big 3” iron ore producers along with BHP Billiton and Rio Tinto. Read more

Glencore increases debt reduction target

Published 7 March 2016

Glencore has released its FY15 result. While the results are materially down on 2014, due to the significant falls in commodity prices, we believe this was already priced in when we launched coverage. Importantly, the company has improved its debt reduction target by a further USD1bn. Read more

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