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I have only just found this forum. I posted this on the TXP site. I picked up another £10K of North today.
For those looking at another way in to TXP there is still Northenergy asa, TXPs largest share holder. At the end of Q2 the percentage of NAV in TXP was 27%, but TXP has gone up since then but so has NE SP and NAV.
I calculate that NE is still sitting on a big discount to NAV. Market cap at end of Q2 was 61% of NAV, and it is now at 61% ( NE SP went from 1.4NOK to 1.9NOK but has dropped back to 1.7NOK.
The % of NAV in TXP I calculate at 31%. With the discount for every £1 in NE you get 50p exposure in TXP.
But NE has also announced a dividend policy of paying out 40-50% of net annual profit. It is already sitting on I estimate 105NOK of profit, so if it pays out 50% of this, that is about 25% of its current Market Cap. As nearly half of its NAV is in cash it can certainly afford to do this.
So you invest £1 in NE and in 7months you get paid a dividend of 25p. So then you have 50p of exposure for every 75p in NE.
A bigger payout if TXP goes up, with greater exposure.
And still exposure to NE at a discount, and its discounted cash pile. An interesting play.
These two gents as financial advisors, and chairman of BOD (Anders Onarheim) are now controlling 32% of NORTH.
anybody know how to delete it
cheers
North Energy ASA - Mandatory notifications of trade and disclosure of shareholding
1.9.2020 17:01:39 CEST | North Energy ASA | Major shareholding notifications
Rachid Bendriss, financial advisor to North Energy ASA and primary insider, has
purchased 408,497 shares at NOK 1.6848 per share via his fully owned company
Celisa Capital AS. The total number of shares beneficially owned by Bendriss
after the transaction is 9,067,797, which equals 7.62% ownership in North Energy
ASA.
Didrik Leikvang, financial advisor to North Energy ASA and primary insider, has
purchased 408,497 shares at NOK 1.6848 per share via his fully owned company
Isfjorden AS. The total number of shares beneficially owned by Leikvang after
the transaction is 6,930,300, which equals 5.82% ownership in North Energy ASA.
DISCLAIMER
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act
LEXION?LEMON Don't hesitate to scrap the Disney channel, the stock market is far more entertaining. Start 'em young.
As you will gain far more in a month than it costs, you shouldn't hesitate.
I am a very parsimonious person these days and even I can see the benefits.
You may also get one or two ideas that are only available if I can contact you direct, as they are not going to be aired on a public forum.
Subdued day in Norway after excellent Q2
Happy to hold here to let that value pan out -which it will
Dana - would you go for LSE premium or deprive the family of Disney + ?? Can’t decide
Have a good bank hol everyone- I’m back working - combine rocking and rolling
Just to reiterate lexions comment I am also very grateful for all the time you have spent deciphering the data into meaningful information.
GLA
Keep up the good work
LEXION thanks for the appreciative remarks.
As you know, in spite of North Energy ASA being slow to realise that a dual listing would be good for the company, we will continue to petition for this, and use pressure to achieve it.
Best,
DANA
Thanks Dana and Norb for all your analytical content
These results are spectacular- pity the response is pretty muted -value always bigs out in the end
10% discount to NAV would be a good start and that would come with a dual listing as has been talked about here
NAV = 334 MILLION NOK
SHARES IN ISSUE 119 MILLION
IF TRADING AT 100% OF NAV SHARE PRICE = 2.80 NOK
PLEASE NOTE THE SHARE PRICE SHOWN HERE ON LSE IS NOT LIVE, IT IS ONLY UPDATED AT THE END OF DAY TO THE LAST UK TRADED PRICE.
IF YOU WANT TO SEE DELAYED LIVE PRICES GO TO
https://www.oslobors.no/ob_eng/markedsaktivitet/#/details/NORTH.OAX/overview
Now moved to 1.96 NOK
https://www.oslobors.no/ob_eng/markedsaktivitet/#/details/NORTH.OAX/overview
If you look at the Oslo Bors page, premarket is showing 1.91 NOK but much greater strength and depth than usual.
https://www.oslobors.no/ob_eng/markedsaktivitet/#/details/NORTH.OAX/overview
The prices are delayed 15 minutes, so we will have to wait to see where it opens, but my git feel says that it will open at North of 2 NOK.
Let's hope so, it certainly deserves to , the discount to NAV has jumped considerably, and the NAV of 283 Million NOK as at 30th June has improves by circa £4.43 million or 51 million NOK.
BY MY RECKONING THE NAV OF NORTH IS NOW 334 MILLION NOK VERSUS A CLOSING M CAP LAST FRIDAY OF 217.5 MILLION NOK WHICH IS SHARE PRICE TO NAV OF 65% .
The share price is on its way Up.
All imho and dyor and my arithmetic may be wrong, please check it for me.
the investment in TXP represented 27% of the stated 283 million NOK.
IE 76.41 million NOK.
As at the 30th June, the £ stood at 11.9 NOK
https://www.poundsterlinglive.com/best-exchange-rates/british-pound-to-norwegian-krone-exchange-rate-on-2020-06-30
So the value of TXP shares at 30th June was £6,42 million, with a share price of 53,5 pence = EXACTLY 12,000,000 Shares.
So let us assume that through deduction, North held 12 million shares at 30th June. I did not manipulate the figures at all, and the 12 million shares figure was my first calculation of the numbers.
Since 30th June, the 12 million shares have increased in value to £8,4 million, a profit of £2 million.
In addition to this, the Reach subsea shares have increased in value by 1.08 NOK to 1.66 NOK, an increase of 54%
The value of the Reach shares as at 30th June was 50.4 million NOK so now worth 78.4 million NOK an increase in value of 27.5 million NOK.
It is all looking better and better.
Results as expected. I did miss on equity (non-controlling interest which has been eliminated going forward). Still scratching my head about TXP and what to expect going forward.
It is worth noting that since the Q2 results, the TXP share price has moved from 53.5 pence to today's value of 71 pence, an increase of 33%.
We can expect that if/when Chinook hits the gas bottle, the TXP share price should increase by 25% and more once reserves are confirmed in due course.
We believe that North has continued to sell TXP shares, but the SP achieved in the interim is likely to have averaged 65 to 70 pence, so a much bigger cash pile to distribute next year after the AGM per the newly stated dividend policy.
I haven't yet compared the official figures with Norb's excellent estimates, but things are looking very good indeed.
I expect the share price to open at 2.25 NOK or perhaps even better!
All imho and dyor.
Thanks Norb for bringing this share to the attention of TXP shareholders, we are very grateful!
About TXP
North Energy decided to realize some profit during the quarter by selling 5.7 million shares, resulting in cash inflow of NOK 26.1 million and a net profit of NOK 17.6 million. Through these transactions, North Energy has realized values in an amount equal to its total cash investment in Touchstone Exploration. As such, the remaining shares held represent only profit and the Company has an opportunistic approach in respect of maximizing the total value of its remaining shareholding.
Opportunistic approach.........whatever that means.
Here they are with pretty pictures as well.
https://northenergy.no/wp-content/uploads/2020/08/NE-Interim-report-Q2-2020.pdf
and they look pretty good to me, thanks to TXP Touchstone!
https://newsweb.oslobors.no/message/512512
North Energy ASA ("North Energy" or "Company") records an income of NOK 52.0
million in the second quarter of 2020 compared to a loss of NOK 8.4 million in
the same quarter last year. The income this quarter is primarily due to a
significant increase in market value of the investment in Touchstone
Exploration. The Company's cash position as per end of second quarter is
reported NOK 136.5 million.
The Company's main industrial investment, Reach Subsea, reported an all-time
high result of NOK 27.8 million in the second quarter. High utilization and
successful project execution are the main drivers behind the improved
performance.
North Energy's total investment portfolio, measured at market value, is per end
of the second quarter NOK 143.0 million, up from NOK 115.8 million last quarter.
The portfolio consists of industrial holdings, listed financial investments and
other financial investments. The industrial holdings include the Company's
shares in Reach Subsea where North Energy is the major shareholder. The listed
financial investments consist of shares in Touchstone Exploration amongst
others.
The Board of Directors have revisited the Company's strategy, including an
updated dividend policy. For further details, see the second quarter financial
report for 2020, which is available on the Company's website, www.northenergy.no
[http://www.northenergy.no].
https://northenergy.no/wp-content/uploads/2020/08/NE-Interim-report-Q2-2020.pdf
I dont expect much to happen short term after Q2. Need to see a higher MCAP of REACH, and the market beginning to appreciate the investment in TXP.
well done dana. I've had another small top up this morning also
cheers
Took another 34,936 this morning after the usual hassle of phoning a limit buy order in.
Now set fair for Monday morning with the anticipated quarterly update.
It will be interesting to see whether the Oslo market has sufficient volume for the share price to reflect the massive discount to net asset value.
If this share were quoted on the AIM market, I am sure that the response would be much better.
Time will tell.
Had the usual bugger about trying to get through to EQI as this can only be done over the phone.
Held for 25 minutes and got through and finally placed my order.
Missed it by 30 seconds.
Norway closes at 3.20 pm.
GRRRRRRRRRRRRRRRRRR!!!!!!!