Shares in oil and gas firm Ophir Energy (LSE: OPHR) fell by more than 6% this morning after the firm reported a pre-tax loss of $123m for the first half of 2015.
Ophir’s production is currently running at 14,600 barrels of oil equivalent per day (boepd), which has prompted the firm to increase full-year guidance to 11,000-12,500 boepd. This production helped generate revenue of $86.5m and cash flow from operations of $69.4m.
Net cash was $392m at the end of June. The firm its oil production is currently breaking even at an average of $15 per barrel, excluding interest costs. Looking ahead, Ophir is continuing to work towards the development of its major gas assets, and expects to make a final investment decision on the Fortuna Floating LNG development in Equatorial Guinea in mid-2016.
At close to 100p per share, Ophir trades 30% below its book value of around 150p per share. The company has a strong balance sheet and very attractive long-term gas assets. In my view, Ophir could be worth a closer look.
Michael Page International
Shares in recruiter Michael Page International (LSE: MPI) have already risen by 33% this year. This has left them quite ambitiously valued on a 2015 forecast P/E of 26 and with a prospective yield of 2.6%.
The firm is at a good point in the economic cycle, however, and earnings per share are expected to rise by another 27% in 2016, making the firm’s valuation look more reasonable.
Today’s interim results appear to confirm this positive outlook. Earnings per share for the first half of the year rose by 20% to 9.0p, compared to 7.5p for the same period last year. The operating margin rose from 7.0% to 7.6%.
Shareholders are being looked after as well. The interim dividend rose by 5.3% to 3.6p, and shareholders will also be rewarded with a one-off special dividend of 16p per share as the firm has decided to return £50m of surplus capital to shareholders.
This bumper payout means that shareholders could enjoy a total yield of 5.7% this year, based on current forecasts.
Meanwhile, the firm’s international footprint means it is able to prioritise markets with maximum potential. Although the shares aren’t cheap, I believe they could have further to go.
Coca Cola HBC
Coke bottling firm Coca Cola HBC (LSE: CCH) was one of this morning’s biggest risers, up almost 10% to 1,452p at the time of writing.
The firm announced a 3.8% rise in bottling volumes during the first half, although this fell to 1.8% if the contribution from four extra selling days was stripped out. However, volumes rose by 6.2% in the firm’s developing market segment, suggesting that the group’s turnaround plan is bearing fruit.
Although net revenue fell by 1% due to the weakness of the euro, Coca-Cola HBC’s operating profit rose by 21% to €199m and the firm’s operating margin improved from 5.2% to 6.3%, which seems a strong performance.
However, the firm may face renewed pressure on margins following the recent merger of several other Coca-Cola bottling companies.
Today’s adjusted earnings per share of €0.389 appear to be in-line with consensus forecasts of €0.79 for the full year, leaving the shares on a forecast P/E of 23. In my view, that’s probably high enough for now.
