KCA Deutag - comment

A rinse-and-repeat comment on the back of KCA Deutag’s Q1 results as they continue to publish strong numbers.  Leverage continues to fall (1.6x) and frankly, we are all just waiting for the refinancing and potential listing of the bonds.  Momentum is definitely with the Company and we were expecting some capital transactions this year.  In the meantime, bondholders continue to clip a coupon.  

Specifically, the Company continues to increase its backlog, with over $5.5bn of backlog (>3.0x annual revenue) with further wins to be added.  Management reiterate previously made comments that they are working with their advisers to secure a sustainable future and optimise value for all stakeholders.  There were no questions from analysts as we have heard it all before.