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Nature Group – cracking contract award bodes well
Posted 31/08/11
The provider of port reception facilities and waste water treatment solutions for the oil, marine and process industries has been awarded a major contract (no figures mentioned although there is talk of it being worth more than $2m!) for the offshore treatment of waste oil slops generated on board a FPSO (Floating Production, Storage and Offloading vessel), employed by one of the oil majors (no names either!) off the coast of Brazil.
The contract is for the treatment of oil waste currently collected on the FPSO and ensures the oil major a substantial cost saving compared to onshore treatment. Nature’s solution also ensures that all recovered oil can be re-used by the oil major. The Group expects to treat up to 50.000M3 of contaminated oil/water with its CTU during a period of at least 4 months on board the FPSO.
The share price has received a big boost following the announcement leaving the shares trading at 9x December 2011 adjusted estimates and 7.1x for 2012, yielding just over 2.7%. Full year 2011 projections are for sales totaling £21m and pre-tax profit od £6m
For the year ending 31st December Group revenue was £6.8m, post tax profit £1.5m (2009: £1,573,712) and basic earnings per share 3.71p (2009: 4.05p). The operating cash inflow was £1.58m and the Group had net cash of c£4m at year end net of the fund raise and acquisition.
With the shares well off their 52 week highs of 99p, the Group well positioned with cash in the bank and the technology clearly attracting interest it looks like an interesting time to get involved.
This entry was posted 8 months, 3 weeks ago.
