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Soley, if you look at GEs statement it says 'no new build', so doesn't suggest they'll honour anything unless it's already built or in construction. I spent last night reading every news release available and it points to them not supplying any equipment to new build coal fired stations. This is why the binding EPC & O&M submissions were important, although I never thought for a second GE would pull the rug like this. Hopefully CMEC have some form of guarantee or legally binding contracts on equipment provision for our project and it can go ahead unencumbered, but until we hear this is the case the market will assume the worst (as I have). SP suggests this is happening.
As for anything else, the rns reads to me as though they have been caught off guard. The most important rns to come is the one that says GE are committed to supplying the technology for this project. Simple as that. If there's anything else then don't expect the sp to be back in the 4's until the EPC & O&M submissions have been sorted as this will have a knock-on effect on everything, including the most important piece of news which is the tariff approval.
What an absolute f@cking cluster f@ck.
Ffs it clearly states they’ll honour existing deals and plants Maintenance
Caterham, bang on, about Chinese being likely to buy GE coal division. Those were my thoughts too.
Of what kind, I have no idea.
Announcement any minute I’m hearing.
Sorry guys until the company release an rns saying 'everything is under control / nothing to worry about' then the SP is going to get destroyed. If Hanno knew these things were about to happen (or could happen) then as a good CEO he would have contingency plans in place or indeed some form of legally binding agreement that commits GE to providing the necessary technology for our project to go ahead. If GE pull out now and there's no contingency plan it will be catastrophic for the company as the entire project has been built around their technology. The whole thing will need to start again - Are you willing to wait another 3-5 years to get back to this point? Let's hope it isn't left field and Hanno has done his job in being prepared for this possible scenario. In the meantime I don't see an rns or any interview being logged so have to assume he has been caught off guard, which wouldn't be the first time. The market will assume the same. I don't even want to look at the sp in 30 minutes.
I agree Badeli - there has been much press speculation for last two years regards GE exiting coal business, so yesterday’s article will be no big surprise to investors, Hanno or CMEC.
1. I suspect Hanno / CMEC was given a heads-up from GE many months ago, yet the Tete project process still rolls forward.
2. GE can’t afford to p*ss off Chinese government (they are potentially huge renewables customers).
3. Wouldn’t be surprised to learn that GE sells its coal engineering division (IP, patents, etc) to the Chinese.
I doubt Hanno was told of exact timing of yesterday’s press article, so may not get an RNS out at 7.00 this morning, in which case the SP will take a battering today.
I hold approx 0.5% of NCCL, but am not overly concerned by the GE news.
I think we will hear quite a lot from Hanno in the next few days and I imagine he and his colleagues will have been aware of the GE strategic decision for some time and factored it in to the overall plan if necessary. However, I think we will be told it remains all systems go.