E Friday Market Report

We are now planning a trip to London so I may be filing less fully because my day will start earlier. I am desperate to escape lockdown and also to visit our growing family there, my new grandniece.

Today we have two reporting companies.

*Tomra Systems of Norway with two ticker symbols in the US reported on its Q1 results at 5:30 am my time. I was not awake. It rose 4.08% in Norwegian trading on good news. It had revenues of Norwegian Krone of 2.291 bn, up 3% but its recycling-sorting business dropped by a third from the prior year. Collection (of empties) however saw sales up 21%. It now has a new product line, sorting small diamonds.

Gross margins were up a fraction, to 42.5% from 42.3% in Q1 2020. Operating expenses were flat at NOK 733 mn. Earnings before interest, taxation, and amortization (not including depreciation) was up a bit at NOK 240 mn from prior year's NOK 228 mn. Cashflow was NOK 269 mn, up from prior Q1 level of NOK 265 mn. TMRAY-TMRAF closed the quarter with its orderbook showing NOK 1.385 bn in orders a new high. TMRAY stock is now at $49.37 bid and $50.07 ask while TMRAF is at $49.71 bid and $50.03 ask. It did not report quarterly profits. There will be an annual dividend for 2020 payable May 7 at 35.87 US cents, ex-div May 5, a yield of 0.72%.

Business newspaper article

image source

Energy

*Schlumberger Ltd of Curação today reported on its Q1 results which were good. It net income was $299 mn or 21¢/sh, naturally not as high as the prior pre-pandemic level of $324 mn and 27¢/sh. But it beat the consensus forecast by 2%. Revenue was down 30% y/y to $5.22 bn, not only because of the virus but also because SLB sold some North American businesses in Q4. Sales would have been flat from Q4. However, they were down 23% from Q1 2020. The big drop was in North America not just from the asset sales, but because of covid-19 shutting exploration drilling. Revenues dropped 17% from the Dec. quarter and 55% from the prior Q1. Latin America and Middle East sales were up. The company expects North American revenues to grow this year but did not pick a number. CEO Olivier Le Peuch predicted that oil demand could rise by as much as 6 mn barrels/day in North America by the end of this year. SLB provides services to oil and gas drillers based on technology developed by the founding Alsatian brothers a century ago. It doesn't count as a green stock.

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William K. 3 weeks ago Member's comment

Again, an interesting article.

And while you are in Sunny England say "hello" to the metropolis of Birmingham, a place where I spent a year during one month. An interesting place indeed.

Vivian Lewis 3 weeks ago Author's comment

not Birmingham. we will stay mostly in London and maybe Devon