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Fortune Oil Share Chat (FTO)



Share Price: 10.50Bid: 10.00Ask: 10.50Change: 0.00 (0.00%)No Movement on Fortune Oil
Spread: 0.50Spread as %: 5.00%Open: 10.50High: 10.50Low: 10.50Yesterday’s Close: 10.50


Share Discussion for Fortune Oil (FTO)


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Del44
Posts: 2,151
Off Topic
Opinion:No Opinion
Price:11.75
Quady
3 Mar '14
Nice find Quady...
Was that in the Magazine last week?...Didn't see if it was...LOL
 
Quady
Posts: 310
Off Topic
Opinion:No Opinion
Price:12.00
good news part 2
3 Mar '14
continuation of post

The story gets even better because even the eye-catching 36 per cent rise in Fortune Oil’s book value last year from £246m to £334m understates the true value in the company. Since the end of December, shares in China Gas Holdings have risen by a further seven per cent, so when the company next reports its results for the 15 months to end March, reflecting a change in year-end, expect yet another big hike in Fortune Oil’s net asset value.

Needless to say, I continue to rate shares in the company a value buy on a bid offer spread of 11p to 11.5p
Quady
Posts: 310
Off Topic
Opinion:No Opinion
Price:12.00
good news part 1
3 Mar '14
Simon Thompson seems to like us .

Shares in Fortune Oil
(FTO: 11.5p), an operator of oil and gas projects in China, have risen sharply in the past month after I highlighted the hidden value in the company’s balance sheet. Investors buying into this special situation will not have been disappointed by Fortune Oil’s financial results for the 12 months to end December which showed net profit rising more than 10-fold to £164m on a 16 per cent increase in revenues to £856m.

The spectacular increase mainly reflects a net gain of £76m on Fortune Oil’s holding of 184m shares in Hong Kong listed China Gas Holdings (HK:384), and a beneficial interest in 732m shares of China Gas Holdings through a joint venture China Gas Group Limited. Combined this means that Fortune Oil has an interest in 916m shares, or 18.36 per cent of China Gas Holdings equity. Having seen its share price surge by more than half since the middle of last year, China Gas Holdings now has a market value of HK$61.1bn, or £4.7bn at current exchange rates, based on 4.98bn shares in issue and a stock price of HK12.16. This means that Fortune Oil’s direct investment in the company is worth HK2.23bn, or £172m. That’s the equivalent of almost 60 per cent of its own market value.

In addition, Fortune Oil in effect owns another 366m China Gas Holdings shares worth £332m through the aforementioned joint venture. Or put it another way if Fortune Oil was to sell all of its China Gas Holdings shares at market value, then it would realise around £500m, or two thirds more than its current market value!

It’s a solid investment too as China Gas Holdings continues to expand its share of the domestic piped gas market and now has over 10m residential customers, a 23 per cent increase year-on-year, and sold 1.1bcm of natural gas to them. The group also supplied 2.4bcm of natural gas to commercial and industrial customers. China Gas Holdings continues to expand and now has 170 natural gas projects, nine natural gas pipeline transmission projects, one natural gas exploration project, and 44 liquid petroleum gas distribution projects. It's a vast operation and a profitable one with the group’s pre-tax profits soaring over 70 per cent to £185m in the six months to end September 2013. In turn, the annual dividend of HK8.48 cents equates to a £1.2m payment to Fortune Oil on its directly owned interests, and a further £4.8m to the joint venture.

Apart from these valuable strategic stakes, Fortune Oil is also a shareholder in a joint venture aviation fuel business, Bluesky. Fortune Oil’s share of net profits rose by almost 14 per cent to £13.1m last year, inline with growth in sales volumes and reflecting increased demand for both domestic and international air travel.

The story gets even better because even the eye-catching 36 per cent rise in Fortune Oil’s book value last year from £
MAO3
Posts: 637
Off Topic
Opinion:No Opinion
Price:12.00
Very nice to see...
3 Mar '14
...a bit of blue amongst a sea of red. Complete carnage today.
Del44
Posts: 2,151
Off Topic
Opinion:No Opinion
Price:11.50
15 month divi
26 Feb '14
The Company has changed its financial year-end date from 31 December to 31 March starting from the financial year of 2014. The change is to align the Company's financial year-end with CGH to facilitate the preparation of the Company's consolidated financial statements. The Company's statutory accounts for the fifteen months from 1 January 2013 to 31 March 2014 will be published by the end of July 2014. As a result payment of the Company's normal annual dividend will be deferred three months to November 2014 but will be related to a fifteen months period.
Quady
Posts: 310
Off Topic
Opinion:No Opinion
Price:11.50
RNS
26 Feb '14
OK this makes good reading .
Lots of highlights and a look forward to the end of March , where looking at the way CGH is performing , can't do us any harm and can only be good .
At last some movement , think this will slowly start to register on the radar , expecting a follow up in some broker recommendations ( at least one please ) , and maybe start to move the market capital figure closer to the NAV .
Interesting times ahead . Good luck everyone .
EarlyBird-Rns
Posts: 2,017
Premium Chat Member
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Price:11.00
Nice Rns...
26 Feb '14
FINANCIAL HIGHLIGHTS

-- Group revenues including share of jointly controlled entities and associates increased by 16 per cent to GBP856.6 million (2012: GBP739.4 million).

-- Net profit from all operations attributable to owners of the parent increased 948 per cent to GBP164.1 million (2012: GBP15.7 million). This takes account of other gains and losses of the Group of GBP141.2 million, comprising a net gain of GBP76.1 million in respect of the Group's investment in China Gas Holdings Limited ("CGH") prior to CGH becoming an associate and a gain of GBP100.9 million on disposal of Fortune Gas Investment Holdings Limited ("FGIH"); partially offset by the non-cash impairment loss of GBP35.8 million with respect to the full carrying value of the assets in the Armenian iron ore project.

-- Basic earnings per share was 8.00p (2012: 0.82p). Basic earnings per share, excluding other gains and losses of the Group including share of jointly controlled entities, was 0.79p (2012: 0.58p).

-- Net assets further increased to GBP334.5 million as at 31 December 2013 (2012: GBP246.8 million).

-- Following completion of the acquisitions approved by Shareholders at the General Meeting in September 2013, First Level Holdings Limited and Vitol Energy (Bermuda) Limited together hold 56.9 per cent of the Company.

-- Special dividend of 2.36p per share paid to shareholders in October 2013.

-- US$300 million (GBP188 million) loan facility signed to aid future expansion of the Group of which US$180 million (GBP113 million) remain undrawn.

-- China Gas Group Limited ("CGG"), the joint venture company in which the Group has a 50 per cent interest, owns 732,446,000 CGH shares, representing 14.68 per cent of CGH total issued shares as at 31 December 2013. As at 26 February 2014, the Group and CGG together held 916,565,463 shares in CGH representing 18.36 per cent of CGH's total issued shares of 4,991,748,561, as per CGH's latest public information posted on 4 February 2014.

CORPORATE MATTERS

-- The Company has completed the transfer of FGIH to CGH (the "FGIH Transaction") and the two companies' natural gas businesses are in the process of being integrated. The FGIH Transaction was completed in August 2013 and results are reported including the trading results of FGIH for the period prior to this date and excluding its trading for the period after this date.

-- Following shareholders' approval, the Group completed the acquisition of Wilmar International Limited's interest in the consideration receivable as a result of the disposal of FGIH. The total consideration was US$60 million (GBP39.1 million) payable to Fortune Dynasty Holdings Limited ("FDH") in ordinary shares in Fortune Oil. FDH is a joint venture company owned 55 per cent by First Level Holdings Limited (controlled by Mr Daniel Chiu) and 45 per cent by Vitol Energy (Bermuda) Limited, a major shareholder of the Company.

-- Pursuant to
EarlyBird-Rns
Posts: 2,017
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:11.00
Rns...
26 Feb '14
26 FEBRUARY 2014

FORTUNE OIL PLC

("Fortune Oil", "the Company" or together with its subsidiaries "the Group")

Second Interim Report for the twelve months ended 31 December 2013

Fortune Oil develops and operates oil and gas supply and infrastructure projects in China. Fortune Oil is quoted on the Main Market of the London Stock Exchange and has its headquarters in Hong Kong.

FINANCIAL HIGHLIGHTS

-- Group revenues including share of jointly controlled entities and associates increased by 16 per cent to GBP856.6 million (2012: GBP739.4 million).

-- Net profit from all operations attributable to owners of the parent increased 948 per cent to GBP164.1 million (2012: GBP15.7 million). This takes account of other gains and losses of the Group of GBP141.2 million, comprising a net gain of GBP76.1 million in respect of the Group's investment in China Gas Holdings Limited ("CGH") prior to CGH becoming an associate and a gain of GBP100.9 million on disposal of Fortune Gas Investment Holdings Limited ("FGIH"); partially offset by the non-cash impairment loss of GBP35.8 million with respect to the full carrying value of the assets in the Armenian iron ore project.

-- Basic earnings per share was 8.00p (2012: 0.82p). Basic earnings per share, excluding other gains and losses of the Group including share of jointly controlled entities, was 0.79p (2012: 0.58p).

-- Net assets further increased to GBP334.5 million as at 31 December 2013 (2012: GBP246.8 million).

-- Following completion of the acquisitions approved by Shareholders at the General Meeting in September 2013, First Level Holdings Limited and Vitol Energy (Bermuda) Limited together hold 56.9 per cent of the Company.

-- Special dividend of 2.36p per share paid to shareholders in October 2013.

-- US$300 million (GBP188 million) loan facility signed to aid future expansion of the Group of which US$180 million (GBP113 million) remain undrawn.

-- China Gas Group Limited ("CGG"), the joint venture company in which the Group has a 50 per cent interest, owns 732,446,000 CGH shares, representing 14.68 per cent of CGH total issued shares as at 31 December 2013. As at 26 February 2014, the Group and CGG together held 916,565,463 shares in CGH representing 18.36 per cent of CGH's total issued shares of 4,991,748,561, as per CGH's latest public information posted on 4 February 2014.

OPERATIONAL HIGHLIGHTS

-- The Group has completed the transfer of FGIH to CGH and the two companies' natural gas businesses are in the process of being integrated.

-- Bluesky continues to perform well. The Group's share of net profit increased 13.8 per cent to GBP13.1 million for 2013 (2012: GBP11.5 million), with a 13.4 per cent increase in sales volumes to 3.4 million tonnes (2012: 3.0 million tonnes), driven by the continued increase in domestic and international air travel demand.

-- The Group has entered into a new 20 year
shatter
Posts: 5,327
Off Topic
Opinion:No Opinion
Price:11.00
Friday morning
21 Feb '14
Its holding remarkably well around the 11p level. Thought this was another 5 day wonder spike... good to see..
Del44
Posts: 2,151
Off Topic
Opinion:No Opinion
Price:11.25
Wednesday morning...
19 Feb '14
I'm hoping for a strong opening this morning...





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