19 July 2019:  Another new contract for PEA:  Pacific Energy Secures New 12.9MW Power Station Contract

This time their (Pacific Energy's) wholly owned KPS subsidiary has secured a new contract which involves buying an existing power station off the owners and mine operators - of the Jaguar Copper/Zinc Mine, Round Oak Minerals, and assuming full operational responsibility - to supply Jaguar with electricity.  Under the contract, PEA have also agreed to (within five months) complete a range of optimisation and enhancement work to improve fuel efficiency to an agreed target range, optimise control systems and reach agreed KPI’s for station reliability.  The contract is expected to commence following settlement in August 2019 and will run for an initial term of four years, with Round Oak having an option to extend for a further term.

Pacific Energy’s Managing Director, James Cullen commented, “We are grateful for the confidence that Round Oak has placed in KPS to take over full responsibility for power supply to the Jaguar site. The key driver for Round Oak awarding the contract to KPS was to realise operating efficiencies and the KPS team looks forward to showcasing its knowhow in gas and diesel fuelled technology to deliver on this”.

Disclosure:  I hold PEA shares.

27 June 2019:  Another guidance upgrade from PEA today.  They are clearly in an upgrade cycle - a very good time to hold them I reckon (and I do).

INCREASE IN FY19 EBITDA GUIDANCE

With results for the first eleven months of the 2019 financial year now complete, Pacific Energy Ltd (the “Company”) (ASX: PEA) advises the market that it is on track to exceed current EBITDA guidance of $60m - $61m for the full financial year. The Company now expects to record EBITDA of around $65 million for FY19.  

This financial result is preliminary, and the final result remains dependent on finalisation of June’s trading figures and completion of the annual audit. 
 
-ENDS

30-Oct-2018:  Pacific Energy (PEA) have announced a new 14MW power station contract with Panoramic Resources (ASX: PAN) - see here - for PAN's fully-funded Savannah Nickel-Copper-Cobalt Project (contract term: 8.3 years / 100 months) and PEA have announced that their group contracted capacity now stands at 391MW.

22-Oct-2018:  Pacific Energy (PEA) - 2018 Annual Report - see here

November/December 2018 (I think):  Pacfic Energy provide energy solutions to remote minesites and communities.  They usually employ a BOO (Build, Own, Operate) model, and they have a lot of mining companies as clients, especially gold miners.

They have recently made two acquisitions:  Contract Power and NovaPower.

FY18 Results:

• Revenue up 19% to $68m
• Underlying EBITDA up 10% to $44.1m
• Underlying NPAT up 14% to $18.3m
• Underlying EPS up 12% to 4.86c
• Reported EBITDA down 23% to $31.3m due to various one off costs - acquisition and impairment related

Outlook / Guidance:

• 41 power generation sites under long term contract with weighted average remaining duration 4+ years
• Diversified across mining, remote townships and NEM and covering multiple technologies:
  • gas, diesel, waste heat, solar, dual fuel, hydro
• Underlying EBITDA guidance of $54m -$55m
• Positive outlook in natural resources sector
• High level of tendering / pricing activity
• Addition potential from:
  • new contracts
  • expansions
  • re-starts of Care & Maintenance stations
  • EPC work
• Optimistic about regaining Newmont lost ground (KPS has already secured 25MW of new capacity in past year)
• Well funded to pursue growth with circa $50m facility headroom
• Record operating cash flow forecast of circa $45m (before capex estimated at $15m and principal debt repayments of $11m)
• Remain alert for asset and business acquisition opportunities

Further growth in the new financial year is expected to come from a full year of Contract Power and  NovaPower results, organic growth from within existing contracts and new contracts that the Company aims to secure.

The Company notes that the resource industry outlook remains positive and it is confident of achieving its  forecast of $54 to $55 million in underlying EBITDA for FY19 as well as securing new contracts that will underwrite further growth into FY20.

Operationally, its ongoing investment in innovation, personnel and equipment coupled with deep industry  knowledge and experience provides a high level of confidence to customers that they will receive mission  critical, uninterrupted power supply to their remote operations.

The Company remains in very good financial health with significant headroom in its financing facilities, solid  operating cash flows, reliable long-term annuity type income streams and a healthy balance sheet.

22-Feb-2019:  PEA reported this morning - their 3-page summary (media release) can be viewed here.  Their 11-page results presentation can be viewed here.  

Highlights (from their 3-page summary - link above):

• Underlying EBITDA up 56% to $32.8

• NPAT up 76% from $8.0 million to $14.1 million

• Results include six months of Contract Power business (acquired April 2018)

• Growth driven from combination of Contract Power results and continuing growth

• EPS up 52%

• Strong operating cash flows of $27.2 million ($17.3 million pcp)

• 17% reduction in net debt (Net Debt : NTA ratio 59%)

• Dividend resumed with interim dividend of 1 cent fully franked declared

12-Feb-2019:  Pacific Energy (PEA) have upgraded guidance - see here - The revised guidance for underlying FY19 EBITDA is $60 million - $61 million  (previous guidance was $54 million - $55 million).  The Company also confirms that all business units are operating ahead of expectations.  They will release their half-year results on Friday 22nd February 2019.