It has been a terrible 20 months for investors in Indus Gas (INDI). Since we last wrote about the Rajasthan-based gas producer in January 2014, the share price has dropped by almost 90 per cent against a backdrop of plunging gas prices. Not that you'd know that from the Indian gas producer's full-year headline results for the year to March, which boasted a 38 per cent increase in post-tax profits to $16.2m (£10.6m) after sales of 9.8m standard cubic feet of gas.
During the year, the company also saw a 52 per cent leap in its proven and probable reserves, and the Indian government approved its request to retain a potential mining lease area. With this in place, Indus drew down on a $180m debt facility and secured a further funding stream post-period after issuing SGD$100m (£46m) of unsecured notes on the Singaporean stock exchange, maturing in 2018 and obliging Indus to pay an 8 per cent fixed coupon. These are the "very attractive terms", backed by robust fundamentals, that chairman Peter Cockburn believes will help fund future production growth.
Broker Arden Partners is forecasting pre-tax profit of $42.3m this financial year, giving EPS of 23.1¢, up from $31m and 16.9¢ in the year to March 2015.
INDUS GAS (INDI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 108p | MARKET VALUE: | £198m | |
| TOUCH: | 105-117p | 12-MONTH HIGH: | 355p | LOW: 79p |
| DIVIDEND YIELD: | NIL | PE RATIO: | 18 | |
| NET ASSET VALUE: | 48¢ | NET DEBT: | 234% | |
| Year to 31 Mar | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 2.2 | -2.4 | -1.0 | nil |
| 2012 | 6.8 | 3.1 | 1.0 | nil |
| 2013 | 8.1 | 3.1 | 1.0 | nil |
| 2014 | 27.8 | 21.0 | 6.0 | nil |
| 2015 | 41.4 | 30.0 | 9.0 | nil |
| % change | +49 | +43 | +50 | - |
Ex-div: na Payment: na £1=$1.53 | ||||
