The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
this was always the danger with delays to the project, it's been obvious for ages that GE were taking a back seat. However it's likely that GE will try and sell off the technology, if not i'm sure there are equivalent companies in China that can provide it!
However, Hanno needs to pull his finger out his arse and realise that these constant delays aren't good enough, if he misses the next deadline this will be back in the 2's
What are the other coal OEMs? Surely the pricing is relatively similar across the market. CMEC will have various suppliers they will use, and since they are majority owner of the project then i don't see why replacing GE with a supplier known to CMEC is a problem. Additionally, since finance is coming from China then the lenders will have experience with these suppliers
Yep I read that too extrader. The questions still reman though:
- How do they define 'EXISTING OBLIGATIONS'? Does this refer only to built / existing plants and their servicing model...? Or does it cover 'agreements'. I noted Taiwan is referred to as a 'contract' so assume this could be different agreement to our JDA...?
- As for references to 'EXISTING OBLIGATIONS' and 'WE WILL CONTINUE TO SUPPORT OUR CUSTOMERS' these statements again could refer only to existing plants / customers (and not existing 'agreements').
Sadly the statements they've made are open to interpretation and I won't rest easily until I know 'existing obligations' includes our JDA. GE really have become a joke.
Further thoughts :
- GE signed a contract with Taiwan (ho ! ho!) as recently as 4th September , see
https://www.ge.com/news/press-releases/ge-awarded-equipment-contract-taiwan-power-company%E2%80%99s-hsinta-and-taichung-projects
Extract : "The new generating units will commence operations in phases from 2024, GRADUALLY replacing coal-fired power generating units, in line with Taiwan’s Renewable Energy Development Act (REDA) energy policy that seeks to INCREASE the gas-fired power ratio to 50% by year 2025..."
- The GE press release https://www.ge.com/news/press-releases/ge-pursue-exit-new-build-coal-power-market
itself says : "BOSTON, Mass.—September 21, 2020— GE (NYSE: GE) announced today that it INTENDS to exit the new build coal power market, subject to applicable consultation requirements. GE’s Steam Power business will work with customers on EXISTING OBLIGATIONS as it PURSUES this exit, which may include divestitures, site closings, job impacts and appropriate considerations for publicly held subsidiaries.
GE will continue to focus on and invest in its core renewable energy and power generation businesses, working to make electricity more affordable, reliable, accessible, and sustainable. GE Steam Power will continue to deliver turbine islands for the nuclear market and service existing nuclear and coal power plants. "
Russell Stokes, GE Senior Vice President and President & CEO of GE Power Portfolio said, “With the continued transformation of GE, we are focused on power generation businesses that have attractive economics and a growth trajectory. As we pursue this exit from the new build coal power market, WE WILL CONTINUE TO SUPPORT OUR CUSTOMERS, helping them to keep their existing plants running in a cost-effective and efficient way with best-in-class technology and service expertise.”
Re GE Steam Power : .." As today’s #1 steam power franchise with more than 30% of the world’s steam turbine installed capacity, 50% of the world's steam turbines operating in NUCLEAR power plants and 30% of the world’s boilers, GE Steam Power technology is delivering solutions that ......"
Funny (not !) that nuclear, the 'natural' baseload energy source, didn't get a mention by the BBC....;-<
ATB
Do it splatted! Do it! :))
Hi G_G_G,
.."the best outcome would be GE confirming they will still be the technology partner and all is fine with our project..."
Totally agree clarification (positive !) would be welcome.
You can see that that might be a bit of an ask right now, I'm sure their PR people are playing 'pass the hot potato' right now.
If their tech is mostly overseas (ie not in key voting states), that might be a bit easier...;->
ATB
GE big announcement to get out of coal and go green. It’s quite clear who they think are going to win the election
Cricket chaps, might have to jump back in. Looking more tempting at this price
Got to say, when we had recent delay in June/ July, Historic Costs were due add then SHA TS. When delay happened, SHA TS got shunted in front of Historic Costs. Now, in light of this GE news, I sense that this GE situation was known back then (and even before), and so SHA TS was brought forward to confirm CMECs key commitment in project, to balance GE news to come. Otherwise, GE news without prior SHA TS would've been more worrying.
Is a massive thing that recent CMEC 60% confirmation and our own 40%. Now with GE news out, we can let dust settle and let Historic Costs valuation restore the SP to fair levels.
Certainly hope you're right CF. The 'no material impact' statement gets thrown around a lot. I think most companies use it to say 'the project won't fall over', rather than 'it won't impact timelines'. To this point the most important things to know are 1) the project is 100% secure and progressing as planned 2) new formally agreed timelines (with GE or new partner, Moz gov.t and EDM).
We've bounced off support so providing the first point is definite, and the second point doesn't give the impression that key milestones will be pushed well into next year, then we should head back up to the 4p area. The second point is my main concern. NCCL timelines have been nothing short of a joke. This could be a rather large spanner than needs to be removed before the project can continue unencumbered. Of course the best outcome would be GE confirming they will still be the technology partner and all is fine with our project. Another couple of pieces of news that will need to be delivered this month.
"All critical Project work streams, including the historical cost audit and tariff negotiations, continue to progress positively."
That says an enormous amount!
"The Company is in communication with GE and confirms that it has not received any formal notification from GE regarding its future role in the Ncondezi 300MW coal-fired power project (the "Project") following the announcement."[1]
[...]
"Should the Project need to replace GE in its role as the technology partner the Company is confident that in conjunction with CMEC it can source a new technology partner and it is not envisaged that such a process would have a material impact on the Project. Further updates will be made in due course."[2]
_______
[1] We are in comms with GE but GE have not as yet pulled out of the project. At this point, NCCL cannot say anything more definitively until they can out a statement that van formally clarify, and that will take working GE and CMEC
[2] If a replacement is expected to have to be found, they expect no material impact. This is a bold thing to say. An delay on the timeline, if that was to occur, is a material impact, at least to me. So by that statement, seems to me they expect no delay. Indeed, all workstreams moving well, on track.
We wait to see, of course. But think news is matter days away.