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Nearly two years I bought this for something like 15p and sold at 19p. Watched it to 28p over the next month. Its going to be nails for me to stay with this - I think summer is going to see it over 40p, if the variants don't mess things up. I do think at the moment the variant stories are just idiot journalists.
Agree Pelle. Easier and quicker for public demand to accelerate than oil production. Personally I'm desperate for a meal out, a haircut, a holiday, a drink, meet friends, a reason to drive out other than just for exercise. Walking from and around home does become a little monotonous and I've tarted my garden shed up so much that I'm thinking of advertising it on Airbnb.
Barkindo also addressed the devastating impact of the pandemic on the world economy and the global oil market, noting that investment in the oil sector has declined tremendously.
“Investment dropped up to 30 per cent for this year, even more than in the 2014-2016 downturn, from which the oil industry was still recovering when COVID-19 struck,” the Secretary General said, adding that the oil industry requires $12.6 trillion in investment to reduce volatility and avoid a possible future energy crisis.
PR - I say now because this is inevitable (if POO does not save the day). Selling production is selling assets (as I say that is an option but). The banks are going to be talking to enquest now, not waiting until midnight on October the 31st or whenever the final balloon payment is due.
You stated that debt was not due to be repaid for 3 years which is wrong and misleading.
This might help. Liverpool are trying to keep Wijnaldum whose contract ends next summer. Nothing is set in stone but most deals don't wait until maturity and I'd expect discussions to complete around March/April regarding the SFA. In fact informal discussions are always ongoing. The Sculpture type deal is only one avenue. We know that there is a kinda balance in the supply/demand of oil but around that time Covid should be in full retreat and demand will take off. I doubt production will be able to match it. Loan providers also compete to lend and if criteria is achieved with a backdrop of higher oil then we should get a good deal. Fixating on the existing situation can only give a backdrop of where we are today. Thinking 6 months ahead we will have a higher oil price and lenders can form an orderly queue. In fact I don't expect that to happen because I expect there'll be fresh deals that will be part of any financial restructuring. Not out of weakness but planning for the future. If nothing changes (impossible imo) then bond negotiation will begin (say) 2 years from now. In fact if we are flat because oil is $45 and below $65 then we can only repay SFA. I'm with PRDaynes and Pelle on this. I hope we do raise bonds in a year or two because they won't be to pay off existing debt but to finance new projects/deals. We aren't in the mess that TLW and PMO are today but it has been touch and go for EnQuest in the recent past. However, we still get lumped with them because of misunderstandings over our debt. The HYN's are with vulture funds and they will happily exit as they improve and the same for the RB which moves in lock-step but I'm not sure who holds the bulk of them. Friday RB 63.625 HYN 63.909
So your now is next October? well by then the Sculpture loan will have all but been repaid, so Enquest will likely do another deal on the 15% of Kraken ring fenced to Sculpture should their be a need. We are not over the same barrel as PMO Debt did go up but early repayment was made to RCF so my view of your comment on now, is it will arise in 2023 if oil does not make a healthy recovery by then. I liked an earlier post making the point that if we get a jump in oil to $55 a good hedge will transform our position and your side of the debate will have no substance.
“Bank will be happy to extend that” Clearly Pele has never worked in a bank and don’t know the mechanics of debt restructure. Enquest will have to raise some cash whether some here like it or not. I know I’ll get abuse from the usual but it’s fact after last update.
Enq already pay down the bank loan with 600m. If oil continue around 45-50 maybe they only can do 300m of the 385m remaining until Oct. Bank will be very happy extend the period. So no need ask shareholders at current prices. And I bet it’s much more likely oil go to 80 instead of 20 in 2021/22.
The fact is that at current oil prices, and all projections I have seen for next year, enquest come up against a hard deadline in October next year when the final payment is due. They need to raise funds in the next 10 months IMHO.
Looking at the bond prices it is clear that new bonds or bank debt are not achievable IMHO. The only option would be to raise funds from shareholders or start selling assets at knock down prices...
a sale of the company is very unlikely IMHO, though might offer the best way to get a small gain from these sp levels.
Without doubt things could have been better, but then every oil company has suffered because of the low oil price. But to try and claim Banks and Bond holders have to NOW decide on the fate of Enquest is completely misleading they have to fulfil their contract with ENQ and all terms are being met and Enquest have 3 years to repay or replace the Bond debt. Oil above $55 will solve all repayment issues and we have plenty of time.