Cathedral Energy Services Ltd CETEF

CET Q4 ,2020

[Possibleidiot01]

To me , ongoing financial erosion

		December 31		December 31
					2020		2019
Working capital					$	7,680	$	20,181
Total assets					$	64,280	$	106,300
Loans and borrowings excluding current portion					$	1,560	$	6,000
Shareholders' equity					$	39,974	$	68,092

Also mention of a need for more covenant relief , although the company does say ' Assuming the Company is successful in obtaining covenant relief for any potential forecasted covenant violations, Management's forecasts also show the Company meeting all of its financial commitments including interest payments over the next twelve months."

Anybody ,adonis1411 have a reaction to the results?

[auburn2]

I agree ESN is the better choice at this juncture. For comparable risk-reward CET would have be trading at around 15 cents.

[Adonis1411]

Very disappointing results. I know revenue has come off quite a ways but I cannot understand how they can continue to not make positive EBITDA in a wage subsidy world. I had heard through the grapevine that they were busy, couldn't find people, etc. in Q1 and were looking to bump pay rates in the field to get people back. Doesn't give me the encouragement I was hoping for when they're

[auburn2]

The downhole tool biz ESN has should be getting lots of well abandonment/decommissioning work. Also Canadian rig counts have recovered far better than US rig counts.

[C32BTT]

Compared to PHX this company has a much more concentrated major customer reliance rather than spread across many customers, which is the major cause for the large drop in revenue.  I read that it was something a long the lines of 29% compared to 9% for PHX.  So, if the company can sell their product/service better to more customers rather than one major csutomer it should definitely

[BearBullBrian]

There was a time when CET share price was more than twice that of PHX. Now PHX is more that TEN times that of CET. CET would have to make quite an improvement to close that gap. BBB

[C32BTT]

I think any improvement at this point would improve the perception of this company.  PHX is trading at 1.327 times bookvalue whereas CET is trading at 0.38 times bookvalue.  There is a pretty wide gap between the two and you have to wonder for yourself if that gap is really justified.  I just think there is upside potential more so with CET considering how cheap it is compared to

[pennydredful]

Insiders  "stole"    equity   with  recent  private  placement  at    .25 

[C32BTT]

Depends on how you look at it though.  They were using more cash than they were generating, so they had no choice unless you want them to take on more debt which isn't prudent at the moment.  They issued the shares at the prevailing market price during that time which is supposedly for paying off the debt and reinvesting into more drill motors and mwd equipment.  I guess you can