Daily Colombian Equities Bulletin and Fundamentals - March 14, 2014
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March 14, 2014 (www.investorideas.com newswire) Latam markets were mixed as Bovespa in Brazil decreased 0.91% and Chilean IPSA index increased 0.21%. The local COLCAP index closed at 1597.85 pts., equivalent to a 0.82% increase; the total traded volume reached COP 244,668 million (~119 USD MM). The best performers were Pacific Rubiales (+10.84%), Enka (+4.58%) and Cemargos (+2.51%). On the other hand, the worst performers were Odinsa (-3.60%), PfBancolombia (-2.62%) and Carvajal Empaques (-2.29%). The most traded shares today were Pacific Rubiales, PfBancolombia and Ecopetrol.
Pacific Rubiales 2013's revenues were USD 4.626 million, +19 % YoY and only 0.1 % below our estimates. Meanwhile, 4Q13's revenues were USD 1.202 million, +14.9 % YoY and 0.4% lower than our estimates. 2013's net production after royalties was 129.386 boe/d, +32% YoY and 0.6% higher than our estimates. Meanwhile, 4Q13's net production was 134.313 boe/d, +24 % YoY and 2.6 % higher than our estimates. 4Q13's combined sale price was USD 90.6/barrel, - 4.2% YoY. EBITDA for the year was USD 2.567 million, +27.1% YoY and 0.3 % higher than our estimates. 4Q13's EBITDA was USD 656 million, 53.1% YoY and 1.1 % higher than our estimates.
We highlight the reduction in cost of diluents in the 4Q13, which was USD 2.14/barrel, -72% YoY and -38.9% QoQ, while the cost of transportation was 12.26 USD/barrel, -7.3 % oY and -14.9% QoQ. Combined operating netback 2013 was USD 60.77/barrel, +0.95 % YoY and 0.38% lower than our estimates. 4Q13's operating netback was USD 59.43/barrel, +27.9 % YoY and 1.1 % lower than our estimates. 2013's net income was USD 430.4 million, -18.4% YoY and 9 % higher than our estimates. Meanwhile, 4Q13's net income was USD 176.1 million, +840 % YoY and 25 % higher than our estimates. We believe 4Q13 results were generally positive, with double-digit growth in revenue and EBITDA. Likewise, we highlight the reduction in operating costs due to lower diluents, transportation and operation costs. The company maintains a positive view on CPE-6 and Rio Ariari blocks, in which expects to reach a net production of 10,000 bop/d and 8,000 bop/d by the end of 2014, respectively. We emphasized the difference in terms of debt at the end of 2013 from our estimates. Total debt ended at USD 4.437 million Vs USD 3.438 million (est). Finally, we maintain our target price at COP39,760/share
Davivienda announced its consolidated results today for the 4Q13. Accumulated net profit for 2013 was COP 851.1 billion (+ 22.3% Yoy), of which COP 95 billion was contributed by the new foreign subsidiaries. 2013's Return on Average Equity (ROAE) was 15.1%, +154 basis points QoQ. Net profit for 4Q13 was COP 258.7 billion, -19% QoQ and +66.4% YoY. NIM closed at 7%, -23 basis points QoQ and -80 basis points YoY. The efficiency indicator stood at 53.8%, -90 basis points QoQ. The gross loan portfolio closed at COP 41.1 trillion, +6.2% QoQ and +19.4% YoY.
Davivienda's shareholders approved the profit distribution project presented by the Board of Directors. During this year, Davivienda will pay COP 630 per share, which is equivalent to a 2.6% dividend yield as of today. The dividend will be paid on March 26th and the ex-dividend date is expected to start on March 19th. Finally, we highlight that this dividend represents a 12.5% increase relative to the dividend paid in 2013.
The BVC informs that due to the Equity Issuance of 110 million preferred shares of Bancolombia S.A., the BVC equity indices will be adjusted in the weightings. That said, PF Bancolombia will have a weight of 12.59% in the Colcap, the second largest weight in the index.
Fedesarollo released the Consumer Confidence Index for February, which stood at 15.7%, with a sharp drop from 26.6% in January. The index of consumer expectations fell from 27.6% in January to 14.6% in February, which showed deterioration in the economic outlook for the next 12 months. Additionally, the economic conditions index rose from 25.1 in January to 17.3 in February.
In the US, markets were negative as the S&P 500 decreased 1.17% and the DJIA decreased 1.41%.
US Retail sales in February showed a variation of 0.3% MoM, slightly above from analysts' expectations (+0.2%). However, the previous figure was revised from -0.4% to -0.6%. Additionally, initial jobless claims for the week ended March 8 stood at 315K, below the figure expected by the consensus of analysts (330K)
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