Brokers Hargreave Hale gave the following Valuation for HMY

VALUATION
The nearest comparisons to this Group are Sondex, trading on a current year multiple of 14 and Weir Group which typically trades on multiples of 12 plus. We would argue that Hamworthys prospects are brighter than both these companies in view of the strong order book and the global positioning. Fully taxed earnings of 13p this year and 16.5 p for the 2005/6 end March, suggests a current year PE of 9.9x and a prospective PE of 7.8x. There is a prospective yield in excess of 4%. If trading on a similar PER to Sondex the shares would be valued at in excess of 180p. We would argue that a premium to Sondex is justifiable, in particular because of the potential ramp up to sales as a result of the new product pipeline now gaining client acceptance in what is in any event one of the fastest growing markets in the world.

"Shares" Article relating to Hamworthy (HMY) posted below for info.

With a following wind these shares should double over the next year or so.

Some catty folk in the City say the flotation last month by Collins Stewart
could have been handled better, i.e. at a higher price. It was certainly over
subscribed but the rating is half that of similar oil sector service companies
including Sondex.

Some serious buying today...

From the FT on Saturday, an interview by Lucy Warwick-Ching with Charles Thomas head of Jupiter Ecology Fund:

What is your current top tip?

"The increasing awareness of the need for a lower carbon environment is propelling demand for liquefied natural gas (LNG) and shipped gas. A company which particularly impresses me is Hamworthy, a leading designer, developer and manufacturer of advanced marine fluid handling products. It boasts a strong market position in this growing sector. Hamworthy is run by experienced management and has a long-standing reputation within the LNG and shipped gas industry, which has high barriers to entry. The shares trade on a price/earnings ratio of 15 and with strong growth prospects and potential for acquisitions, I am positive about the outlook for the company."

Cheers, Madison

What a corker this one as been guys still holding and thinking of adding. Seemingly we are in for a very bad winter can only speed up the process of inporting LNG.

cheers Gf

GF

Jumped ship at 230 but thinking of getting back in. Where do you see it going from here or is the smart money already in.

MS

Well 2006 we become net importers of LNG which should mean this sector should boom. I havent yet worked out the revised P/E still jet lagged.

cheers GF. Going to hold myself for more gains whatever. Read a report from Mark Slater last night where he said he couldnt see oil or gas prices stagnating /dropping for years to come.

I think Mark Slater is right. He also likes SEY.

MS

Yup saw that aswell. Only trouble is it looks like every tom dick and harry are already in it.

cheers GF.

From Lloyds List:

Hundreds of LNG ships must be built says Cook

AS GLOBAL demand for liquefied natural gas rockets over the next 30 years, more than 400 new liquefied natural gas carriers will be required to cover transportation requirements, writes Martyn Wingrove.

In order to cover the rapidly increasing shipping needs for this sector, more shipyards capable of building LNG vessels are also needed.

Linda Cook, Royal Dutch Shells executive director of gas and power, forecast demand for LNG cargoes will increase five-fold by 2030, meaning 100 more processing trains will need to be built and a fleet of more than 600 LNG carriers will be required.

Global LNG demand will grow at 10% per year over the next 10 years and capacity with increase five-fold by 2030, she said at Londons Oil & Money conference.

From a fleet of 179 ships we will need more than 600 while there are 69 under construction or on order.

Growth in the sector is driven by bulging demand from North American LNG markets, plus expanding requirements for cargoes to Europe and emerging markets in Asia, including China and India.

Growth in LNG has been enabled by significant reductions in capital costs, plus increases in train and ship sizes, making LNG more viable over longer distances, said Ms Cook.

John Martin, managing director of ABN Amro bank, carried on the discussion by urging more shipyards to enter the LNG vessel building market to keep ship costs down.

The trend in LNG shipping is that vessel size is growing, he said. We need more competition from the yards and new yards to come into the market. There is also pressure on costs from steel prices and on charter rates. Speculative newbuilds are a key driver to develop the spot market.

He expects global inter-regional trade in natural gas to treble with half of this using LNG. He forecast the whole LNG chain will need investment of $250bn to meet demand for new plants, ships and regasification facilities.

Cheers, Madison

Fantastic piece of research madders, well done.

cheers GF.

A nice ride up here aswell this morning.

cheers Gf.

Thought it was looking perky today:

Hamworthy plc
28 September 2005


Press release 28 September 2005

Hamworthy plc

Hyundai Heavy Industries awards Hamworthy contract

for LPG reliquefaction package



Hamworthy plc (HMY.L), a world leader in the design and manufacture of
innovative marine and offshore fluid handling systems, has won an order to
supply a liquefied petroleum gas (LPG) reliquefaction package for two very large
gas carriers (VLGC) at Hyundai Heavy Industries (HHI). The contract has a value
in excess of 8 million and includes all cargo related engineering and
equipment.



The ships will be constructed at HHI in Ulsan, Korea for delivery to Bergesen
World Wide, the biggest operator of large size LPG ships in the world. The
Hamworthy LPG plants are expected to be delivered to HHI during 2007.



Kelvyn Derrick, Chief Executive of Hamworthy plc, said: 'This is the first LPG
cargo handling package that Hamworthy has won at HHI. Very large LPG carriers is
a sector of particular strength for Hamworthy and we are extremely pleased to
have this contract with HHI which is not only the largest ship builder in the
world but is also the largest builder of LPG carriers with an average of 15
delivered annually.'

Yes what a cracker of a deal. More to come me thinks.

cheers GF.

Sorry to say Gf
Moved this one on below 3.00
Two days b4 they anounced the new 25mill order.
Didn't like forward earnings,
but cleared a good profit.
I think now on reflection i got it wrong big,
well you can't win them all.
All the best to those still in.
HUSTLER

You cant win them all Hustler although you win a lot more than most. I still beleive theres a lot of growth in this one so I wouldnt give up on it even at this level.

cheers GF.

Historically their profit margin has been around 6-7%.

However, the reliquification plants are state of the art technology with a sky high entry barrier. Consequently, would expect the profit margin on this business to be much higher say 15-20%, with recurring income from maintenance contracts over the 25 year life of the vessels.

Since the beginning of 2005, in addition to their exisiting pump business HMY has signed contracts to supply over 100 million of vessel and shore based reliquification sysytems. This would suggest a considerable increase in profits should be delivered through a combination of increased turnover and higher profit margins.

With first orders achieved to supply reliquification plants for LNG & LPG vessels and a shore based application HMY is now extremely well placed to take advantage of the expansion in LNG & LPG demand over the coming years. imo

Potential New Business

Lloyd's List 29.9.2005 - Nakalit lines up record $1.8bn LNG ships order


QATAR Gas Transport Co, also known as Nakilat, is set to re-write the record books once again with contracts for the largest and most expensive liquefied natural gas carriers ever ordered.

The company is poised to order six 250,000 cu m vessels worth $1.8bn.

The vessels will serve the fifth liquefaction train of the Qatargas II project, the joint venture between Qatar Petroleum and ExxonMobil, which is now understood to have opted to employ the so-called Q-Max design rather than a fleet of Q-Flex vessels of about 210,000 cu m.

Nakilat managing director Robert Curt said the company had set mid-October as the target date for determining its equity share in the vessels.

The market expects the six $300m shipbuilding contracts to be placed shortly after.

Nakilats normal practice has been to order the vessels in partnership with other established shipowners.

However, Mr Curt indicated that the company had not ruled out retaining 100% of vessel ownership, in which case it would hire a pre- approved manager to run the ships.

Earlier this year, Nakilat and its partner Teekay Shipping ordered what are the largest LNG carriers to date four 217,000 cu m vessels on the back of charters from Ras Laffan Liquefied Natural Gas 3.

The Teekay tonnage is being built by South Koreas Samsung Heavy Industries at a total contract price of about $1bn or $250m a vessel.

The Q-Max vessels will also be built in South Korean yards.

LNG carrier newbuilding prices peaked at about $280m in 1991.

But this was the cost of a vessel not much more than half of the size that Nakilat is now contemplating ordering, and is not inflation adjusted.

Mr Curt also said Nakilat was seeking to increase the level of its debt financing as its fleet grows.

Nakilats financing arrangements have been structured with 20% equity and 80% debt.

Mr Curt said the company was looking to increase debt financing to 85% and reduce equity to 15% in future deals.

As we build our track record, and become more credit-worthy, we feel we will be able to achieve those figures, he said, adding that the upcoming six-ship deal will reflect that arrangement.

Of the 85% financing, a large amount will come from export credit banks, while the rest will be split between capital markets, local banks and Islamic financing options.

Nakilat was formed to be the Qatari shipowning company for LNG exports by both Qatargas and RasGas as well as the combined associated products such as liquefied petroleum gas, sulphur, and perhaps condensate and gas-to-liquids products.

Although Qatargas II has apparently decided to go with the Q-Max design for train five, Mr Curt stressed that future trains could use conventional sized tonnage, Q-Flex and Q-Max vessels, or a combination depending on sales destinations.

Nakilat has previously said it may require a fleet of about 90 LNG carriers over the next five years.

But the numbers are a moving target as the LNG ventures decide where they will be delivering the gas and in what size ships.

Qatar is expected to have the worlds largest fleet of LNG carriers by 2010.

Excelent research Sbettis. Things could even get better.

cheers GF.

Hi Gf
As previous post i'me dry on this one at present
but still licking my wounds even though it did me a good turn.
This companies HQ is only 6 miles from where i live and i drive past
on a regular basis. I had it as my local company in Investaquest Comp
and did'nt preform that well and i was gutted to finish 12th in my region
and not make the final 100 by only 400 quid.
So i supose that clouded my judgement to sell partly through spite,
however as it is local to me and as said previous i drive past on a regular
basis i can confirm the directors car park does seem to be filled
with more cars recently the only conclusion i can make is
activity is intensifying which should be good for shareholders,
i will watch with interest and may come back on board soon.
Hope the bit of local info helps.
All the best
HUSTLER

Lloyd's List - 30 September 2005

Qatar underlines ambition to win top spot in world LNG market

Qatar is on course to fulfil its ambition of becoming the worlds leading supplier of liquefied natural gas.

Alexander Dodds, the managing director of RasGas, said Qatar was on track to increase production to 77m tonnes a year by 2010.

Speaking at the World Petroleum Congress in Johannesburg, he said the nations two LNG producers, RasGas and Qatargas, had a unique combination of differentiating factors that added up to what he described as the Qatar advantage.

These included continual technological innovation, establishment of a new business model, innovative commercial arrangements and integrated development across the entire LNG value chain.

Mr Dodds said: The Qatar advantage allows us to recast the traditional LNG model and participate in all aspects of the LNG value chain.

We are leveraging relatively low reservoir risk due to the size of the giant North field, strong government support and robust financial strength, with first class shareholders, to construct and operate world class LNG infrastructure.

RasGas, he said, had built up an enviable record of technological innovation along the entire LNG value chain.

Earlier this month, it began production at the second of the worlds two largest natural gas liquefaction trains, each capable of producing 4.7m tonnes a year.

A third train of this size is due to come on stream in early 2007.

Its next project, the $13bn RasGas 3 venture between Qatar Petroleum and ExxonMobil, will have two even larger trains, each with a capacity of 7.8m tonnes a year.

Individually, these trains are larger than many of the multi-train LNG projects that exist today.

Earlier this week, it was reported that RasGas 3 had awarded the engineering, procurement and construction contracts relating to these two trains

The offshore contract was awarded to J Ray McDermott while the onshore work was entrusted to Chiyoda Corp of Japan and Technip France.

Mr Dodds said that RasGas 3 would include a regasification terminal in the Gulf of Mexico with a daily capacity of 2bn cu ft.

This follows the example set by Qatargas II, also a joint venture between Qatar Petroleum and ExxonMobil, which is constructing its own receiving terminal at Milford Haven.

It has previously been indicated that the RasGas 3 project will require 24 LNG carriers of 200,000 cu m and above, much larger than the vessels in service today.

Mr Dodds continued: We are leading the way in LNG technology development and are resident within the Ras Laffan Industrial City complex, which presents significant and unique economies of scale for LNG projects.

This results in very competitive unit costs that allow us to have a global market reach for our LNG.

The scale and tech- nology employed will provide an efficiency that is unmatched in the industry and will allow us to compete in every market around the globe.


IMO
Hamworthy has worked with ExxonMobil over a number of years to develop and refine its shipboard LNG reliquification technology and has since received contracts to supply LNG reliquification plants to the first 12 large vessels ordered for the Qatar Gas Projects. The above report confirms that the 24 vessels required for the Razgas 3 project will also be 200,000 cu m and above, which indicates these too will be powered by low speed diesel engines, and therefore will use LNG reliquification plants to return boil off gas back to the cargo tanks.

Since ExxonMobil is the oil major involved in the developement of the Qatar LNG industry this should leave Hamworthy extremely well placed to win many further LNG reliquification plant contracts there and elsewhere over the next 5-10 years. This company has the potential to go VERY much further. DYOR

Excellent post again.

Hustler local knowledge is often very rewarding knowledge. Cheers mate.

cheers GF.