Page 15 - NorthAmOil week 23

NorthAmOil
NEWS IN BRIEF
NorthAmOil
very comfortable continuing to own the business if the process does not result in an acceptable valuation.” said Luc Desjardins, president and CEO.
SUPERIOR PLUS, June 10, 2019
Commonwealth LNG and
Gunvor Singapore sign
heads of agreement
Commonwealth Projects and Gunvor Group today announced their respective subsidiaries, Commonwealth LNG, LLC and Gunvor Singapore, have signed a heads of agreement (HOA). e HOA anticipates the negotiation and nalization of a de nitive 15-year lique ed natural gas (LNG) sale-and-purchase agreement (SPA) for 1.5 million tonnes per annum (mtpa) of LNG o ake from the Commonwealth LNG export project under development in Cameron Parish, Louisiana.
Kalpesh Patel, Gunvor Co-Head of
LNG Trading said, “ e agreement with Commonwealth LNG is a signi cant step
in executing Gunvor’s overall strategy of uncovering and securing low cost resources and seamlessly delivering them to high value markets. We look forward to working with the Commonwealth team as they continue to progress their project.”
“We are proud to be entering into an agreement for a portion of our LNG o ake with the Gunvor Group – one of the world’s premier commodities trading houses,” said Paul Varello, Commonwealth’s President and CEO.
“Our mantra is to develop LNG solutions for the next generation; in Gunvor, we have found a commercial partner who not only shares that vision, but through its creativity and innovation exempli es it.”
Commonwealth LNG expects to take a nal investment decision on the project later next year.
COMMONWEALTH PROJECTS AND GUNVOR GROUP, June 12, 2019
SERVICES
Perma-Pipe International
Holdings announces first
quarter financial results
Perma-Pipe International Holdings announced today nancial results for the rst quarter ended April 30, 2019.
President and CEO David Mans eld commented: “ e annual seasonal cyclicality
of our business has always de ned the rst quarter as the weakest quarter of that cycle. Compared to the rst quarter of last year, revenues were 16% lower at US$24.3 million, mostly due to continuing customer-driven delays in project execution in the Middle East. Despite this decline in revenues however,
the operating result was unchanged from
the rst quarter of last year as a result of our initiatives to better manage operating costs and to improve pro tability and e ciencies. e impact of these e orts is re ected in a 5% improvement to our gross margins.”
“Backlog has continued to grow and stands at US$63.2 million re ecting an increase of 18% above the level at the end of the rst quarter of last year,” concluded Mr. Mans eld. PERMA-PIPE INTERNATIONAL HOLDINGS, June 11, 2019
MOVES
Encana to buy back shares, exit China
Encana has provided an update on its share buyback programme and reported that
it has signed an agreement to exit China. e Canadian company also boosted its production outlook for the second quarter of 2019 and reiterated its original capital investment plan.
Encana reported that since its buyback programme began in March, it has invested US$1.037 billion to buy roughly 149.4 million common shares at an average price of US$6.94 per share.
e repurchases to date equate to 10%
of Encana’s outstanding public oat. e company said it intends to ful l its pledge to buy back US$1.25 billion worth of shares this year through a substantial issue bid (SIB) to
purchase up to US$213 million of additional common shares for cancellation.
Encana also reported that it recently agreed to terminate its production-sharing contract (PSC) with China National O shore Oil Corp. (CNOOC), which covers o shore operations in China.
e company said that its total liquids output to date in the second quarter of 2019 averaged around 320,000 bpd, up by roughly 10% on the rst quarter of the year. Encana noted a strong performance from its core growth assets in the Anadarko and Permian basins and the Montney play, which are anticipated to yield 13-15% more than they did in the rst quarter.
Hi-Crush initiates US$25
million stock repurchase
programme
Hi-Crush today announced that the board
of directors has approved a stock repurchase programme of up to US$25 million, e ective immediately and authorised through June 30, 2020.
“ e board authorised repurchase programme and the recent purchases of shares by management re ect ongoing con dence in our strategy and strength of our balance sheet, and represents nearly 15% of our outstanding shares at last week’s closing price,” said Robert E. Rasmus, chairman and chief executive o cer of Hi-Crush. “We are committed to executing the programme, and current prices and valuations provide an attractive basis for repurchase.”
e company has no restrictions with regard to stock repurchases under its senior secured revolving credit facility and senior notes due 2026.
Week 23 13•June•2019
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