How Verizon invested $12.6 billion Capex in 9 months
October 21, 2014
American wireless carrier Verizon Communications has invested a massive $12.6 billion during the first nine months of 2014.
The Capex (capital spending) of Verizon Communications in the first three quarters rose 6.9 percent year over year.
One of the focus areas of Verizon was 4G LTE network coverage.
As i told you:
Verizon: Increases forecast capex to USD 17 billion in 2014
American telecom operator Verizon raises capex forecast for
2014 to 17 billion dollars. The previous forecast was 16.5 to 17 billion
Capex Q3 $4.1B
2014 YTD $12.6
2013 YTD $11.8
Small Growth in Capex - NO Slowdown. Add MASSIVE China Mobile CAPEX, you can predict that ALU Numbers next week, will be better than expected....
Next small Coal Deal:
Published: Oct 20, 2014 8:31 a.m. ET
TECO Energy Announces Agreement to Sell Its TECO Coal Subsidiary
TAMPA, Fla., Oct 20, 2014 (BUSINESS WIRE) -- TECO Energy Inc. TE, +0.44% today announced that it has signed an agreement to sell its coal mining subsidiary, TECO Coal and its subsidiaries, to Cambrian Coal Corporation, a member of the Booth Energy Group. The total sales price of $170 million includes future contingent consideration of $50 million if certain coal benchmark prices reach certain levels over the next five years. The $120 million cash base purchase price is subject to post-closing adjustments.
Peabody posts 3Q loss, results top Wall Street forecasts
ST LOUIS, Mo. (AP) _ Peabody Energy Corp. (BTU) on Monday reported a third-quarter loss of $150.6 million.
The St. Louis-based company said it had a loss of 56 cents per share. Losses, adjusted to account for discontinued operations and non-recurring gains, came to 59 cents per share.
The results surpassed Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for a loss of 66 cents per share.
The coal miner posted revenue of $1.72 billion in the period, also surpassing Street forecasts. Analysts expected $1.64 billion, according to Zacks.
Peabody expects full-year results to range from a loss of $1.48 per share to a loss of $1.38 per share.
Peabody shares have declined 44 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 2 percent. The stock has declined 40 percent in the last 12 months.
This should help offset Weakness in US-Telco Capex.
Published: Oct 20, 2014 6:05 a.m. ET
HONG KONG-- China Mobile Ltd.'s nine-month net profit fell 9.7%, weighed down by stiff competition and the carrier's increased investments in its network.
The world's largest mobile carrier by subscribers has been hit by the government's continued efforts to reform state-controlled companies by promoting competition. Being the dominant player in China, China Mobile was ordered to reduce the interconnection fees--money it receives from smaller domestic rivals to connect to its network--beginning this year.
China Mobile started offering Apple Inc.'s iPhones in January, giving the U.S. technology firm access to more than 700 million mobile users in China. Investors had raised concerns over the impact of the hefty handset subsidy, but China Mobile said in August that it would cut this year's handset subsidies to 21 billion yuan ($3.4 billion) from 34 billion yuan it planned earlier this year as part of the mobile giant's latest effort to improve its profitability.
To fend off rising competition in China, the company is doubling its capital spending to $12 billion this year to upgrade its network to provide speedier fourth-generation mobile services. China Mobile is hoping its head start in building a faster 4G network capable of handling data-heavy applications such as video streaming and mobile games could help the company regain growth momentum.
Westmoreland Coal Co. of Colorado has reached an agreement to acquire a controlling stake in Oxford Resource Partners, a Columbus coal company.
The plan, which still needs to be approved by Oxford investors, will allow Westmoreland to use Oxford’s “master limited partnership” structure, which provides financial advantages. It will also allow Oxford to refinance its debt and resume quarterly payments to shareholders.
“This transaction represents the culmination of that effort and we believe that this represents a great opportunity for our company, unitholders, employees and customers, as well as providing a MLP vehicle for Westmoreland and its shareholders,” Charles C. Ungurean, Oxford’s president and CEO, said in a statement. "This transaction is a win for all stakeholders.”
Westmoreland will own 77 percent of Oxford. Once the deal is complete, Oxford will change its name to Westmoreland Resource Partners.
Oxford, which has about 650 employees, including a small staff at its Columbus headquarters, owns and operates coal mines and sells coal, primarily to electricity utilities. The company had $347 million in sales last year and has struggled in a difficult market for coal.
October 16, 2014
NRG Energy Inc. (NRG:US), the largest publicly traded U.S. independent power producer, faces challenges supplying grids with electricity this winter because of reduced stockpiles at its coal plants, Chief Executive Officer David Crane said. More on Bloomberg
ALPHA NATURAL RES DL-,01
Aktien 11.000,000 Stk.
Bought too early....
1. Industrial Production +1%, better than expected
2. Upcoming Election
3. India needs more Coal, out of Stock
4. Upcoming cold Winter
5. Raising Commodiy Prices
6. Production Cutback in Australia, because of China Tariffs.
7. High Short Interest
8. Market Buyer buying into Value Stocks......
Thursday 16 October 2014
Brazilian operator Oi has contracted Alcatel-Lucent to build an optical network linking Sao Paulo to Fortaleza. The project should be completed in three years and is considered one of the largest of the manufacturer in Latin America. In an interview with Convergencia Digital, the president of Alcatel-Lucent do Brasil, Javier Falcon, explained that the infrastructure will be based on OTN technology, with an initial capacity of 2.2 Tbps, which can be expanded to 8 Tbps. The value of the deal was not disclosed by the parties. Besides the 3,000 kilometer long optical network, Oi has also contracted the reshaping its IP backbone, to multiply by ten the flow capacity of data traffic.
October 13, 2014, 10:10 A.M. ET Barrons
Arch Coal, Peers Rally On Its Q3 Update
The third quarter is shaping up to be a bright one for Arch Coal (ACI): The company said early Monday that it is looking for adjusted earnings before interest, taxes, depreciation and amortization of $70 million to $74 million, easily above the $67 million consensus.
It also said it held $1.05 billion in cash and short-term investments at the end of the quarter, an improvement from the $990 million in held at the end of June. Its available liquidity totaled $1.3 billion.
FBR Capital Markets’ Mitesh Thakkar and Chase White reiterated an Outperform rating, noting that investors should like the updated guidance. They also write that the balance sheet update is a “positive given the concerns many investors have had surrounding Arch Coal’s liquidity in recent months.”
Citigroup’s Brian Yu was less enthusiastic. He writes that Arch’s liquidity progress “is probably due to good working capital management,” but that “the EBITDA improvement is still not enough to cover reported interest expense that averages $95 million per quarter.”
The stock was trending higher in premarket, but lost most of its gains not long after the open. It rebounded after 10, and was up 0.7% at recent check. Other names in the sector were still benefitting as well, with Alpha Natural Resources (ANR) up 1.2%, and Peabody Energy (BTU) and Walter Energy (WLT) both up more than 3%.
Arch expects to record adjusted earnings before interest, taxes, depreciation, depletion and amortization ("Adjusted EBITDA") of $70 million to $74 million for the third quarter of 2014, representing an improvement versus the second quarter.
As of Sept. 30, 2014, Arch held $1.05 billion in cash and short-term investments compared with approximately $990 million at June 30, 2014, reflecting an increase of nearly $60 million. In addition, Arch's available liquidity, which includes its cash position and undrawn borrowings on its credit facilities, totaled $1.3 billion at the end of September.
I think youre wrong. Read again:
The Finance Ministry will impose a levy of as much as 6 percent on coal, including 3 percent on anthracite and coking coal, starting Oct. 15,
I am long ANR, but i think this is bad News again... I thought Yesterday was the End of this loosing streak, but with this News it seems pain is not over me...
I think that`s not good for ANR.... Any thoughts?
By Bloomberg News Oct 9, 2014
China, the world’s biggest coal consumer and producer, will reintroduce import tariffs on the fuel in the government’s latest effort to support money-losing domestic miners.
The Finance Ministry will impose a levy of as much as 6 percent on coal, including 3 percent on anthracite and coking coal, starting Oct. 15, according to a statement published on its website today. Similar tariffs were suspended in 2007, while a tax on brown coal was resumed in August 2013.
More than 70 percent of China’s miners are unprofitable, and half are delaying or cutting wage payments after domestic power-station coal prices fell to a seven-year low amid overcapacity and sluggish demand, the China Coal Industry Association said in July. The government, which has urged the nation’s 14 largest producers to cut production by 10 percent this year, last month banned the import of lower-quality coal.
“This is obviously another move to shore up the local coal industry,” Deng Shun, an analyst at ICIS-C1 Energy in Shanghai, said by phone from Guangzhou. “Australian coal will probably be worst hit, as it was China’s top coal-import source this year.”
China imported 61 million metric tons from Australia in the first eight months of this year, about 39 percent of its total shipments excluding brown coal, customs data show. Over the same period, it purchased 21.4 million tons of anthracite and 40 million of coking coal.
Spot coal with an energy value of 5,500 kilocalories per kilogram at Qinhuangdao port, the nation’s benchmark grade, dropped to 470-480 yuan ($77-$78) a ton in the week ended Aug. 3, according to the China Coal Transport and Distribution Association. That’s the lowest level since September 2007. It was at 475-485 yuan through Sept. 28.
Still, Levin said Alpha has room to lower cash costs in the East and will benefit from shipping fewer tons to Europe at a loss in 2015 as contracts expire. He also had high praise for Wood.
"If there are any better CFOs in the US coal industry than Alpha's Frank Wood, we aren't aware of them," Levin said.
The key, though, is that [Alpha] doesn't have to do anything," Levin said. "That's because the Board and management had foresight. Consequently, they aggressively fortified their liquidity, pushed out maturities, and rid themselves of onerous covenants."
A secure future for the next few years and numerous distressed assets up for sale do not necessarily mean Alpha will start acquiring major assets, despite comments made by CEO Kevin Crutchfield in a recent Bloomberg article.
From what we gleaned from Wood, it would be a mistake to assume [Alpha] is actively hunting deals and certainly not large ones," Levin said. "We think the spirit of the comment was that if a producing/[free cash flow] positive asset right next door with obvious synergies was being sold at a distressed price, [Alpha] wouldn't be opposed to looking at it. Even so, we think the Board is still in defense mode until the met market shows more tangible signs of improvement. This is one of the reasons why [Alpha] isn't likely to buy back debt, even at 60 cents on the dollar."
But headwinds remain. The recent international met coal quarterly benchmark settlement of $119/tonne was a multiyear low, and Wood indicated to Levin that the 2015 annual domestic settlement could drop between $10/ton to $15/ton from a year ago.
Production cuts have been slow to materialize. Wood indicated that Alpha has cut about 4 million tons of met coal on an annualized basis, and the United States is cutting around 500,000 tons per month. Levin acknowledged he expected to hear a higher number due to the massive oversupply in the market, but noted that closing a mine is very expensive and some producers can either sell coal at a loss or cease to exist.
"As long as a company has liquidity, they frequently produce to the point of suicide," Levin said.