Positive end to the year augurs well
The year-end close trading update from Northbridge IS confirms a second consecutive year of profitability, with estimates increasing in reflection of the strong end to the year.Tasman’s momentum seen in H2 19 and Q1 20 faltered in Q2 20 due to pandemic-related manning issues at rigs, albeit with a degree of recovery emerging in Q4 20. Crestchic performed strongly, particularly within manufacturing, with datacentre testing proving to be a strong market.
We have increased our adj. PBT estimate for FY20F to £0.4m (previously £0.0m), reflecting a strong Q4, which included two contracts within the marine sector and a significant y-o-y uplift in manufacturing sales at Crestchic.
It remains challenging to value NBI in conventional terms given its EPS remaining negative. However, it continues to trade at a discount to NAV and ratings more than 50% below its peers. We also note the marked FY20 EV/EBITDA discount to its largest customer, Aggreko, currently the subject of a potential bid.
Add in a ‘greening’ of the Group’s activities noted in our recent reports, and we think that the current valuation fails to recognise the strong pipeline of opportunities and potential for further, operationally leveraged recovery.
Halliburton assists its customers throughout the lifecycle of the reservoir, from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion and optimizing production throughout the life of the asset. The company's segments are: Completion and Production, which delivers cementing, stimulation, intervention, pressure control, specialty chemicals, artificial lift and completion products and services; and Drilling and Evaluation, which provides field and reservoir modeling, drilling, evaluation and wellbore placement solutions that enable customers to model, measure, drill and optimize their well construction activities.
Northbridge Industrial Services is engaged in the sales and hire of industrial equipment on a global basis for use in applications in the oil and gas, shipping, construction, and power and utility sectors. Co. has two main reportable segments: Crestchic loadbanks and transformers, which is involved in the manufacture, hire and sale of loadbanks and transformers; and Tasman oil tools and loadcells, which is involved in the hire and sale of oil tools and loadcells.
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