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Lets not get ahead of ourselves, lets get this debt pile reduced first. My opinion only.
Why Dividends? A handsome dividends payout is going to make stock very attractive, Ebitda up , so no more pressure on earnings to debt ratio, Share buy back is last stage in re rate when SP will be significantly up. So, dividends very likely in medium run
Could do with another broker upgrade now with an sp price target say 18 p for now
Looks like Pavel & Co are very keen to resume dividends, just my way of reading between the lines; “"It also recognises the successful commissioning of our pressure oxidation hub which is the cornerstone of our corporate strategy and which will lead to growth in earnings before interest, taxes, depreciation and amortisation and significant deleveraging in 2020 as our capital expenditure spending programme is now largely complete."
Just a pity, we didnt get this upgrade before we changed the bonds, as would have got better terms, although, its probably because of that and other things, such as POX HUB, that they have improved the rating.
It is NOT a bad thing. Just need to start processing the third party offerings and making some extra profits, to reduce debt.
J
Stout, Petro has only just sorted out the Convertible Bond now with repayment in 2024. The $500m Guarantee Notes are not due to be repaid until Nov 2022 and already have an interest rate that is slightly lower than that for the recent new bond issue. So I cannot see any further refinancing at the moment. If things are going well over the next 12 months with excellent free cash flow generation , maybe at that time they will see if they can start to pay off some of the Guarantee Notes early in some way. Alternatively maybe they will start to consider the shareholders and pay a small dividend. Wouldn't that be nice! More will be revealed soon after the half year results in early September. I am sure that soon after they will have a forward looking presentation covering the next couple of years for the various investor days they normally attend during the Autumn.
Will they think about changing the Bond to another one at a lower rate as we are b- ?
I’m thinking!
IMO
Possible?
Stout
Totally agreed Shedulike. Very good to see such a reputable independent third party recognising the significant risk reduction in the business. Be even happier if they were not involved with IRC, but if no major unforeseen event occurs, the outlook for the next couple of years looks extremely positive.
Think I'm talking to myself but it will be interesting to see if they close it completely in response to this. Apart from the rating upgrade some of the Fitch comments are extremely positive.
I think Polygon have reduced their short as well. Not showing on Shorttracker but on the FCA lists it is showing as 1.87%, down from 2.36%. I'm not great on this stuff so check it out yourselves!
Fitch increased POG from CCC to B-, positive outlook