Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Auson, I completely agree that a bit of director restraint would be very welcome, but do you really see that happening?
So in view of that, while the Egyptian assets may not have been particularly good, they were the only regular source of revenue, which was also increasing. If that's the only regular revenue you've got, is it wise to dispose of it, unless there's some really pressing reason, especially if company G&A costs continue unabated and no FID immediately in sight?
I don't recall hearing a proper explanation for the disposal, which shareholders deserved to hear. Can anyone remember what it was?
In the mean time, it may be true that RKH has been a victim of unforeseen adverse economic events, but surely that's why a good management team is there: to negotiate precisely such events successfully? Not to line their pockets, as everything around them goes wrong and they don't appear able to cope?
We've seen companies with incompetent management collapse, unable to anticipate and handle adverse events (e.g. Thomas Cook, Mothercare, BHS, etc., etc.).
So a management team that gives itself big rewards, must deliver company performance and shareholder value equivalent to their rewards, otherwise they're nothing more than thieves.
I suspect Malcy has been proven to be the fool that he appears to be.
He is either a fool , or he is in the paymasters pocket?
No-one could could appear to be so stupid consistently without recourse.
Malcy needs to seriously shut TFU and stop costing PI's hundreds of thopusands of pounds.
He had his lucky period whereas he made his name , it has now gone very very wrong and it's time to button it ..
His recommendations have been disastrous for a few years now.
TheGreaterFool, Although I do agree with you, economic factors/bad timing of Oil price drops have been the crippling of RKH, not director decisions. I have been here for 8 years and have a little sympathy for the management team, not on a financial level as they have done alright out of this, but in a business sense they appear to be failing. This company would nearly be in development and production by now without Global factors. That's sometimes just the rub of the green. Fingers crossed for those who are still invested and heavily down. Hopefully Trumps anti green rhetoric and policies result in long term higher Oil prices coming back and RKH becomes a success. It will not happen in our lifetime at $65 Oil though. However If people believe Oil will again hit above $80 for a long period anytime soon, this is a Bargain Entry price. I'll sit on the fence for now.
TheGreaterFool,
Sorry to hear your down £50k
How much has the CEO taken in salary and bonuses since 2015 ? ( about £2 mill )
How much are his 3m shares and options now worth.
I think they have spent many many multiples more on Sealion than they have all taken in Salaries.
Moody has made just 1 significant purchase of shares in nearly 5 years. He made a sizeable purchase in April 2015. Otherwise, his only purchase was in June 2017, and that was worth just £50k, which is actually a lot les than my current paper loss in RKH.
In the same period, he has taken millions of pounds from the company in salary and bonuses.
There's no rocket science here. It's not hidden. It's a direct transfer from you, me, us, to Sam Moody and his mates.
The only reason why a director would not be buying large amounts at such historic lows - particularly a director with such vast personal wealth obtained through extremely high salary and bonus schemes - is because that director has no confidence that the company will succeed, and so his focus is solely on personal extraction, not investment.
Too right TGF, I've been here many years and share your frustration. IMO their only aim is to milk the company dry as has happened with so many AIM companies - they don't give a hoot about us.
13 people all on the gravy train doing what exactly?
That was me. The only hope we have is mothballing. The way this has been run for the last seven years, has essentially seen a direct transfer from shareholders to staff/directors in salaries and bonuses. We all know we’re running out of money fast, but the question is why? And the answer is because Moody et al are bleeding the company dry into their own pockets.
Seems to me the obvious explanation for why they sold Egypt is because it gives them another couple of million they can give to themselves before switching the lights off.
Ovets,
Yes clearing the decks I think was the excuse given, but really you think the Egyptian assets were that good/ worth keeping. As someone stated on here they need to close everything down mothball and stop taking salaries/ take payment in confetti, I mean shares.
I'm sure there are other explanations, but the Egyptian operation at least provided some regular income to cover G&A costs. To cash that lot-in either indicates that the BOD had been advised/instructed to clear the decks in preparation for the "big event", or perhaps a desperate need to raise cash, or something else? In current circumstances, it starts to look a bit dubious as the "big event" doesn't look imminent.
Extending the the PL032 licence to 1/5/2021 could possibly mean that the "big event" is imminent (in which case you'd expect RKH to extend until at least first oil), or, as things are looking now, RKH just needs to extend long enough to get it over some line (e.g. acquisition/merger?).
One wonders what the RKH BoD see happening after 1/5/2021.
Ovents,
Care to elaborate on this for us ?
'They all have the appearance of preparing for an inevitable demise, rather than galvanising an already thriving enterprise for a new and exciting period'
To Bigred: I put Malcy's stuff in parentheses.
To fuddstone: I agree it's an understatement, but if one puts it any stronger, the nit-wits come out from their holes and start shouting. I've got fed up with them for not at least attempting to understand the realities staring them in the face!
One only has to look at the various decisions the RKH BoD has made this year to wonder how any of them could possibly be intended to enhance the sp and performance of our company. They all have the appearance of preparing for an inevitable demise, rather than galvanising an already thriving enterprise for a new and exciting period (as some posters on this BB would have us believe).
"Having given the matter much thought, RKH has put itself in a pretty weak negotiating position. To any would-be predator, looking for an absolute bargain, RKH really doesn't have much in its armoury to defend such a bid,"
Ovets
understatement of the year this BoD have left the shareholders including myself out to dry ,through in my opinion gross incompetence, no safeguards in the "deal" for RKH , child could have made a better deal JMHO
So the last 3 paragraphs aren’t from Malcy?
Thanks for the Malcy's blog post Ovets.
Just so others don't make the same mistake I did Malcy's Blog is only what is between the inverted commas on Ovet's post.
Thank you for the post Ovets. I think even Malcys come to realise that the BoD have blown it.
My guess is that the damage was done inbthe contract they signed up to with PMO and not seeing (as none of us did) the PoO collapse.
PMO have had them over a barrel (for give the pun) ever since.
That and their subsequent investments: good ideas but dire applications.
Malcy for being such a fan of RKH has never got an interview with Moody either...
GLA, we need it.
Rgds Sft
This is what Malcy had to say yesterday, which I don't think anyone has quoted (if they have, apologies):
"It’s situation normal at Premier who continue to deliver operational excellence with today’s update no different. Production averaged 79.4 kboed with high operating efficiency of 94% and guidance for the full year remains at the upper end of the 75-80 kboed range.
Catcher continues to dominate with 69/- kboed and with project cash payback reached just 22 months after first oil and approval for area satellites received and first oil expected in early 2021. Big-P in Indonesia is on track for first gas by year end and Tolmount is on schedule for the same milestone for the end of 2020 with the East development sanction expected 2H 2020.
Elsewhere, the sales process for Mexico is again delayed but for all the right reasons, there isn’t room in the data room for all the potential buyers. Yesterday’s hullabaloo around the Tullow profit warning doesn’t affect Premier but does have a slight knock on industry wise and it was Eco that took the biggest hit, unnecessarily so in my view.
With these numbers Prems are generating ‘significant ‘ free cash flow which is ‘materially ‘ deleveraging the balance sheet and the management of the portfolio is proving to be sound with cash expected from the Mexican sale and Sea Lion FID upcoming. Business as usual at Premier…"
It does seem that the purdah rules will prevent Export Credit sign-off before the election results are known and then who knows what the outcome will be and its effects on things like this.
However, whatever the climate change movement says (and most of us probably agree with their principles, even if not their methods), oil is still going to power human civilisation for long enough to make SL viable.
So there are some strong economic reasons for the UK Export Credit funding to support this, but perhaps on a less grand scale.
I'd say that any EC funding will be enough to give other backers the confidence to take the plunge.
I'm in no doubt that this IS going ahead, but possibly/probably not the way we'd anticipated, or would have chosen.
This includes the very likely prospect of RKH being taken out (by PMO?) when the last remaining RKH shareholders have lost the will to live and are prepared to sell-out for peanuts. There might be a bidding war, but I wouldn't count on it.
Having given the matter much thought, RKH has put itself in a pretty weak negotiating position. To any would-be predator, looking for an absolute bargain, RKH really doesn't have much in its armoury to defend such a bid, other than the promise of some pretty respectable FI region licences and the hope of a decent arbitration award (not guaranteed).
The recent licence extension looks to me more like an act of desperation, than one of a confident future, otherwise wouldn't RKH/FIG have agreed to extend them for, say, 5 years and SL first oil?