Sunday, March 1, 2015

Week in Review 9/15

Welcome and thanks for reading! In this review, I will gather together important and interesting news and events over the last week related to my portfolio holdings. In my week review, I put also together some interesting articles from other websites that caught my attention during the past week.

Dividends from My Portfolio Holdings:

  • On February 24 I received a dividend of € 11.12 from Royal Bank of Canada.

Dividend income reported after the deduction of taxes. I have also updated my Monthly Dividend sheet.

News from My Portfolio Holdings:  

Ensco plc: February 25, 2015, Fourth Quarter and Full Year 2014 Results (More here)

  • Revenues grew 2% to $1.160 billion in fourth quarter 2014, up from $1.138 billion a year ago, mostly due to the addition of three ENSCO 120 Series jackups to the active fleet and a full quarter of operations for ENSCO DS-7 in fourth quarter 2014. These four newbuild rigs more than offset a decline in reported utilization. The average day rate for the fleet increased to $243,000 from $235,000 a year ago.
  • Reported utilization, which includes the impact of uncontracted rig days and planned downtime, declined to 86% from 90% in fourth quarter 2013. The decline was mostly due to year-over-year increases in uncontracted rig days.
  • Contract drilling expense increased to $514 million from $500 million a year ago. The previously reported sale of jackups operating offshore Mexico influenced the year-to-year comparisons. Excluding the net impact of this sale, contract drilling expense increased 2% to $510 million. Reductions in certain discretionary compensation and insurance costs partially offset the incremental expense associated with four newbuild rigs.
  • Depreciation expense was $139 million compared to $128 million in fourth quarter 2013. The $11 million increase was mostly due to adding four newbuild rigs, partially offset by an $8 million reduction in depreciation expense related to lower carrying values for floaters impaired during second quarter 2014. Asset impairments recorded for 12 rigs on 31 December 2014 will reduce depreciation expense beginning in first quarter 2015.
  • General and administrative expense declined 20% to $28 million year to year, primarily due to lower discretionary compensation.
  • Interest expense increased $17 million to $52 million in fourth quarter 2014, net of $20 million of interest that was capitalized, compared to $35 million, net of $21 million of interest that was capitalized, in fourth quarter 2013. A $1.25 billion debt raise in September 2014 drove the increase in net interest expense year to year.
  • To improve capital management flexibility in light of the market downturn, Ensco’s Board of Directors declared a $0.15 cash dividend per Class A ordinary share payable on 20 March 2015, a $0.60 reduction from the prior level.

Golar LNG: February 25, 2015, Fourth Quarter and Full Year 2014 Results (More here)

  • Delivery of new-build LNG carriers Golar Frost and Golar Glacier and FSRU Golar Eskimo.
  • Agreed the sale of Golar Eskimo to Golar LNG Partners LP for $390 million.
  • Heads of agreement signed with Perenco and SNH for development of Cameroon floating liquefaction project.
  • Contract to convert a second LNG carrier, the Gimi, into a floating liquefaction vessel made effective.
  • Initiated a 5% share repurchase program and authorised issuance of up to 2.5 million new share options.
  • Operating Loss in the quarter at $8.3 million is higher than 3Q at $5.4 million.
  • Underlying EBITDA in the quarter increased to $7.8 million compared to 3Q of $5.9 million.
  • Including $26.3 million non-cash losses on swaps 4Q reports a $38.0 million net loss vs. a 3Q $7.8 million net profit.
  • Board maintains dividend at $0.45 per share for the quarter.

Royal Bank of Canada: February 25, 2015, First Quarter Result (More here)

Q1 2015 compared to Q1 2014

  • Net income of $2,456 million (up 17% from $2,092 million)
  • Diluted earnings per share (EPS) of $1.65 (up $0.27 from $1.38)
  • Return on common equity (ROE) of 19.3% (up from 18.1%)
  • Basel III Common Equity Tier 1 (CET1) ratio of 9.6%

Q1 2015 compared to Q4 2014

  • Net income of $2,456 million (up 5% from $2,333 million)
  • Diluted EPS of $1.65 (up $0.08 from $1.57)
  • ROE of 19.3% (up from 19.0%)
  • Announced an increase to our quarterly dividend of $0.02 or 3% to $0.77 per share.

Target Corporation: February 25, 2015, Fourth Quarter and Full Year 2014 Results (More here)

  • Fourth quarter comparable sales increased 3.8 percent, reflecting a 3.2 percent increase in comparable transactions. Digital channel sales contributed 0.9 percentage points to comparable sales growth.
  • Target’s fourth quarter 2014 Adjusted EPS of $1.50 was above the company’s most recent guidance of $1.43 to $1.47 per share.
  • Target’s full-year comparable sales grew 1.3 percent. Digital channel sales growth of more than 30 percent contributed 0.7 percentage points to 2014 comparable sales growth.
  • Target paid dividends of $1.2 billion in fiscal 2014, an increase of 19.8 percent above 2013. 

Avance Gas Holding Ltd: February 26, 2015, Fourth Quarter and Full Year 2014 Results (More here)

  • The average daily time charter equivalent (TCE) rate for the fleet in Q4 2014 was $70,324/day, compared with $83,893/day for Q3 2014.
  • TCE earnings were $50.6 million in Q4 2014, compared with $45.4 million in Q3 2014, and $40.0 million for the three months ended 30 November 2014.
  • For the three months ended 31 December 2014, Avance Gas recorded a TCE rate of $64,629/day and TCE earnings of $34.8 million.
  • Average daily operating expenses for Q4 2014 were $8,755/day, compared with $9,140/day in Q3 2014 and $9,090/day for the 13 months ended 31 December 2014.
  • Avance Gas' Board declared a dividend of $1.00 per share. 

Toronto-Dominion Bank: February 26, 2015, First Quarter Result (More here)

  • Reported diluted earnings per share were $1.09, compared with $1.07 a year ago.
  • Adjusted diluted earnings per share were $1.12, compared with $1.06 a year ago.
  • Reported net income was $2,060 million, compared with $2,042 million a year ago.
  • Adjusted net income was $2,123 million, compared with $2,024 million a year ago.
  • Announced that a dividend in an amount of 51 (fifty-one cents) per common share has been declared. 

Digital Realty Trust, Inc. February 26, 2015

  • Digital Realty Increases Quarterly Common Stock Dividend by 2.4% to $0.85 per Share. (More here)

Articles that caught my attention: 

I wish all readers a nice next week.   


  1. Hawk,
    Thanks for the mention. Have a great weekend!

  2. DH,
    Thanks for sharing some good read on a beautiful Sunday. Have a good day!
    Take care,

  3. Thank you for including my EMR analysis. I hope you are enjoying your weekend!

  4. DH,

    Sorry about that ESV dividend cut. I'm actually surprised it wasn't eliminated with the FCF, but I hope they turn it around for you. :)

    Appreciate the mention. Hope you're having a graet weekend over there!

    Best regards.

  5. Thanks for sharing the recap as well as the suggested readings...there were a few articles we had already come across but also a few articles we haven't read but intend to. BTW...I feel your pain with ESV dividend cut, we took the same hit. :(

    Hope you have a great week wishes! AFFJ

  6. Love the comprehensive list as usual and thanks for linking to my site!