We would love to hear your thoughts about our site and services, please take our survey 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.
Unless as far as I am aware that savannah has fixed dollar pricing for it's gas so it may mean that the purchasers of our gas are paying us dollar equivalent without and if our operational costs is naira than we could definitely see the de peg as a positive. Long term the de peg is a good thing as it makes financing more market driven and competitive
TIL, I believe that revenues are contracted in USD, but customers pay in NGN at the prevailing spot rate when due. We then are lumbered with Naira.
I would welcome others' interpretations of this material and complex aspect of the financials.
Also if we are after another acquisition in Nigeria depending on how we finance that acquisition it could make it cheaper to finance debt
Every day, there's a new issue with this pos.
In Savannah's case, considering that a significant portion of their revenues come from Nigerian operations, a devaluation could impact the value of those revenues when converted back to US dollars. However, if the company also has significant costs in Naira, these could potentially decrease in US dollar terms, partially offsetting the impact on revenues.
Probably the reason we always traded at such discount?
I believe when we *are* paid in NGN, it's at the prevailing fx rate at the time; so whether taking out purely NGN debt on Accugas is a good hedge is debatable. There appears to be a currency fluctuation risk and a liquidity risk in all this.
Question at the agm I guess. Some senior posters will be attending.
My understanding is that the gas contracts are in USD, but counterparts may (and do) choose to pay in NGN which, historically, we have been unable to sell for USD.
Thus the desire to restructure Accugas debt into NGN. It appears the fx horse has bolted (the peg has gone) before we've been able to shut the gate (restructure to NGN).
I'd be delighted to be corrected on this as it looks rather adverse to the 2023 p&l.
35. Financial instruments continued
(d) Foreign currency risk
Foreign currency risk arises because the Group’s subsidiaries operate in Nigeria, Niger, France, and the United Kingdom, and enter
into transactions in currencies are not the same as their functional currency. The net assets from such overseas operations are
exposed to currency risk, giving rise to gains or losses on retranslation into the functional currency.
Foreign currency risk also arises when the Group enters into transactions denominated in a currency other than its functional
currency. The main foreign currency risk in the year ended 31 December 2022 relates to transactions denominated in Nigerian Naira.
The primary exchange rate movements that the Group is exposed to are US$:NGN, US$:XOF, US$:XAF, US$:GBP and US$:EUR.
Foreign exchange risk arises from recognised assets and liabilities.
Group
The carrying amounts of the Group’s foreign currency denominated monetary assets and liabilities were as follows:
GBP XOF XAF NGN EUR
As at 31 December 2022 US$’000 US$’000 US$’000 US$’000 US$’000
Cash at bank 3,105 1,442 4,947 198,085 377
Exposure assets 3,105 1,442 4,947 198,085 377
Trade payables (2,128) (45) — (13,046) (119)
Borrowings – current — (12,264) — (803) —
Borrowings – non-current — — — (7,097) —
Exposure liabilities (2,128) (12,309) — (20,946) (119)
Net exposure 977 (10,867) 4,947 177,139 258
GBP XOF XAF NGN EUR
As at 31 December 2021 US$’000 US$’000 US$’000 US$’000 US$’000
Other receivables 65,796 — — — —
Cash at bank 16 (1,705) — 128,857 78
Exposure assets 65,812 (1,705) — 128,857 78
Trade payables (4,994) (38) — (13,844) (126)
Borrowings – current (942) (9,916) — (875) —
Borrowings – non-current — — — (8,608) —
Exposure liabilities (5,936) (9,954) — (23,327) (126)
Net exposure 59,876 (11,659) — 105,530 (48)
As described in note 2, the limitation of information with respect to the Chad Assets has not allowed for complete analysis of the Group’s foreign currency denominated monetary assets and liabilities.
Found. Think I need the knowers to elaborate. Zengas, Zone, Trust…
Can you please link? Thanks.
*NGN
See note 35d, page 176.
Net NFN exposure at year-end: USD177m.
Not good.
Directors
talk
interviews
.
com
off topic while we wait and not for me. reference to save and sudan.
https://www.***************************/wildcat-petroleum-ceo-100-expects-profitable-dividend-paying-company-with-no-debt-video/4121121880
I hope so to Zen
I suspect or hope it's in context of the AI report that i posted here on 6/6/23 at 8am where Chad was requested to cede a stake in COTCo in accordance with promises made to Cemac.
Yes. Both Chad and SS. Wonder how long more before we can have some clarity. Not good start to the week.
All very worrying but hopefully we get clarity out of the AGM, can't actualy attend myself but trust the likes of Porsche, Zen and hopefully Agadem to push AK for some answers to some very serious questions.
TiL
These are questions I will be asking at the AGM.
If there are other questions posters would like me to ask then please post them.
If any other posters are going to the AGM it would be great to meet up for coffee beforehand to divvy up the questions in case I am limited in the number of questions that can be asked.
It's important that Savannah are explicitly able to clarify the position in regards to this, as investors if a company can't let it's shareholders follow the pound as I like to call it than that creates uncertainty amongst the investor base.
Zengas - It would just be as important to hear from Savannah not only about the 10% sale of Cotco to SNH but also what happens to it's interest in Cotco as I believe that chad want to block board sits and freeze accounts so Savannah doesn't get access to dividend revenues, whether we sale 10% or not doesn't bother me it's whether we will continue to benefit from it's revenues and have access to these funds.
From 'N'Djamena Actu' this evening
The Transitional President, Mahamat Idriss Deby itno, has dispatched the Minister of State, Secretary - General of the Republic of Chad,
Gali Ngothe Gatta to Yaounde. He had intense interviews with President Paul Biya at the Palais de L'Unite on the afternoon of June 19 2023.
Speaking to the press, Mr Gali Ngothe Gatta says " We have come to carry a message from Chads Transitional Preident tp President Paul Biya to thank him for all the support he has given Chad in the transitional process of managing its oil". He said that the incident between the two countries is "finally closed".
I suppose we may hear what Cameroon in due course re SAVEs interest in COTCo and the proposed 10% interest sale that was suspended supposedly last week.
any way before anything happens they would have to consider china as china and cnpc is critical to oil production and infrastructure that runs through sudan and south sudan. so the question is whether there is appetite for either warring parties to **** off the chinese when they also rely on the chinese heavily to also arm them.
i am not saying that a temporary shutdown cannot happen but there is a lot at stake for either warring parties to go against the chinese. you will never silence the headlines as unfortunately that’s the jurisdiction of assets that we are intending to acquire even if we complete south sudan acquisition stories like these will be a daily occurrence. so a lot will need to be able to filter as much as possible until official confirmation is received from the south sudan government that oil is being blocked from exports until then be ready to hear stories like this pre and post completion of acquisition. also it will be important to see to what extent it would be shutdown for as far as i can tell both sudan and south sudan would be on there knees so there will be no winners out of a prolonged shutdown.