Wish i had bought more last week.Will try to buy more in the next few weeks on any weakness.
The Globe and Mail reports in its Thursday, Nov. 17, edition that though HNZ Group ($10.97) posted disappointing third quarter results, Desjardins Securities analyst Benoit Poirier remains positive on the stock, citing an "attractive" potential for returns given its "positive" free-cash-flow expectations for 2017 and "pristine" balance sheet. The Globe's David Leeder writes in the Eye On Equities column that Mr. Poirier lowered his target for HNZ stock to $15 from $16 with a "buy" rating (unchanged). Analysts on average target the shares at $14.13. Mr. Poirier says in a note: "While ongoing softness in the industry will likely continue until there is a sustainable rebound in commodity prices, we remain positive on HNZ as we expect the company to generate positive FCF in 2017 (we expect $21-million). In our view, positive FCF, combined with the solid balance sheet, provides plenty of opportunity for cash deployment (M&A, partnerships and share buybacks) and reinforces HNZ's credibility versus peers when bidding on long-term contracts. In the meantime, the fleet appraisal value of $14 per share should provide downside support, especially at the current valuation."
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HNZ GROUP ANNOUNCES JOINT VENTURE IN AUSTRALIA TO SUPPORT NEW INPEX OFFSHORE OIL AND GAS CONTRACT
HNZ Group Inc. has entered into a joint venture with PHI Inc. to provide offshore helicopter transportation services for the Inpex-led Ichthys liquefied natural gas project. Inpex is Japan's largest oil and gas exploration and production company, and PHI is one of the world's leading helicopter services companies based in Lafayette, La.
The joint venture will supply up to four Sikorsky S-92 heavy helicopters, alongside the Ichthys project's current aviation provider, in support of the safe and efficient installation, hookup, commissioning and production activities of the project's massive offshore facilities in Australia. The leased aircraft from PHI will provide services for the Ichthys project's offshore facilities and will be based out of Broome, Western Australia. The contract will commence on or before April 1, 2017, with a base term of five years, plus two two-year option periods.
The joint venture is held 50 per cent each by both PHI and HNZ and is designed to provide a comprehensive aircraft solution to the Ichthys project. Employing PHI aircraft, the joint venture will execute all aspects of the contract through service agreements providing personnel, equipment and support for flight operations, maintenance, and administration.
"We are very pleased to have gained a new customer and support the significant Ichthys project through this joint venture," said Don Wall, president and chief executive officer of HNZ Group. "In PHI, we have gained a valuable partner who shares and promotes our values of providing safe, reliable and efficient operations. We are excited about working together on this project, growing our Australian business and look forward to supporting the Ichthys project over the course of the new contract."
This new contract builds on HNZ's current business in Australia, where HNZ has performed helicopter transportation operations for over 20 years. The new contract for the Ichthys project, based in Broome, represents the second customer and offshore base HNZ supports in Australia.