(MENAFN - ProactiveInvestors - Australia) Titan Energy Services' (ASX: TTN) managing director, Jim Sturgess, addressed investors at "Stars in 2012" in Sydney last night and highlighted the strengthening company's financials.
To access the presentation CLICK HERE.
Titan has grown from its original business Atlas Drilling into a diversified services company leveraging from experience within the coal seam gas industry.
Sturgess fielded questions from the audience and said that the fully franked dividend payout ratio of around 25% of NPAT will be maintained following the increase in guidance, and therefore the 0.02 dividend payment will grow in 2013.
The full year EBIT guidance for financial year 2013 recently increased by 1 million to between 8.0 million and 9.0 million, and showing the strength of this guidance Titan Energy Services already has contracts in place to earn over 100% of the guidance.
Another plus is that Titan Energy Services is tracking above expectations, and is expecting a stronger remainder of the year.
Sturgess highlighted the factors driving the expectations included; Additional drilling rig to be in operation; Expansion of the RCH business occurring sooner than expected;
Growth within the Nektar business stronger than anticipated; and coal seam gas activity is buoyant.
The company did note that the results is sensitive to; No significant unbudgeted weather events; Atlas utilisation remaining high during the year; and Continued strong demand for the RCH camps business.
Titan Energy Services portfolio of revenue generation
Titan Energy Services has a portfolio of revenue generating assets, which includes the Atlas coal seam gas drilling rigs, and also portable accommodation which currently includes 427 rooms, with 110 rooms purchased 14 months ago servicing the coal seam gas development and services industries.
The company also has the Nektar & Catering & Camp Management, which is an organic start-up business which has been operating for eight months. One long term contract has been secured, plus another four - with Sturgess highlighting this side of the business has significant growth potential.