Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Just gonna put this here:
AB and Co. have just turned a sinking ship into something that has a bright future. Kraken has performed well for what, like 5 month? We've got 6-7kboepd offline so raising guidance is stupid.
The company has been on life support for 5(!) years. The board and the executives have likely had alot of sleepless nights, and suddenly the sun rises.
After over-promising and under-delivering for years you cannot expect the board to start making bold statements of future riches when production didn't cover costs 15 months ago.
Recovery will be swift, but most of you behave like day traders. Stop whining and go read Peter Lynch's books. His average time from finding value to that materializing was 3 years.
We may get some tailwind from the oil price development , but financials will probably lead the way.
We've got assets producing well into the 2050s. The company is not going away unless it's bought out.
With Amjad at 10%+ I guess that's not going to happen. Enquest will probably/hopefully be around in 30 years.
A strong captain with skin in the game is the best you could ever wish for.
Agreed Mavrick. AB is not in touch with the shareholder base. FFS we shareholders have pumped in 240 m in the last 2 RIs and the mcap is approximately 400m. PMO has not had anything and their mcap is 800m. Without that RI money we would be at 6p. AB has got to step aside. We have a P/E of 2.3 ffs!!!
Looks like most of us long term “bigger”shareholders feels exactly the same.
I want to know how they intend to lift the Mcap return us shareholders some value after bailing the company out (Twice) just paying down the debt obviously isn't working.
We have to have a clear vision, target to aim for. A bit of excitement, something to look forward to but to swerve it does the complete opposite to attracting new shareholder to the company.
The market has changed from the old days and oil is out of favour, bit like tobacco so you have to overcome that and make it look attractive
Totally agree. The Concluding Remarks by AB yesterday just highlighted ENQ’s potential, including the possible uplift in 2C Resources across the portfolio. Magnus alone with only 20% of movable oil in place booked as 2C , and nothing yet for Kraken ( Maureen ) or PM8/ Seligi Gas. For LTH’s this is one to just tuck away, for others it must be highly frustrating . Just hope Analysts give a little more credit to ENQ’s recent financial and operational performance , such as their 8/12 month Well payback ability, rather focus on short term minor issues eg. Thistle , when they get around to updating the Mkt.
Agree Mavrick and Squif
I was hoping for a change at this event that take place every 4-5 years.
On the technical side AB no doubt has the skill set ...fronting Enquest IR is not!!!!
Couldn’t agree more Squif.....who reiterates the same guidance with two months to go with K currently producing 45+....I couldn’t believe that myself
Agree pelle.....a lot of good/valuable information come from yesterday CMD, but they missed key parts.....analysis and investors like big / clear numbers...like forward guidance of production.
And for me they didn’t talk up enough K, they mentioning the years production 38k.....why not shout about where current production is and going?
I think i'll be grumpy and stick with conspiracy theories for now regarding the sp that is at a premium compared to its peers according to one ANALyst.
Pelle - In my opinion at the end of the day as a shareholder in any company it must be up to board and management to communicate what are they doing and what they anticipate this will mean for shareholders. It must be completely possible for them to estimate and say that next year we will produce somewhere between 70 and 75k. That is sufficiently vague. To sit there with two months to go when we are producing 68,500 over ten months and reiterate that the target is still 63 - 70K is in my opinion a joke. The analysts will ofcourse assume the worst and say that if 63k is the target then that could mean production of 35.5k for november and december. I am sure that is not what enquest intends but that is the result and particuarly so when there is the uncertainty of Thistle hanging over them. Of course they say that net debt will be below 1.5 bn but why leave anything open to misinterpretation. No one is sitting here because they think that it is interesting to listen to AB on the CMD. He is so unsalesmanlike it is depressing. Get out and let a more charismatic person take over like Bob D. I think the big drawback is that english is not ABs first language and he feels uncomfortable.
Hi Romaron, it’s all going well but it’s lack of future projection missing in my opinion.
Analysts think we already reached peak of growth this year.
We struggle to compute prod remaining 2019 and 2020 and so do analysts
Look at Lundin for example, picture production growth .
I can mention also that Lundin made a promise like 2-3 years ahead that if oil prices remained around 60 we will distribute x amount money year x.
Enq is not so investor friendly in my opinion
https://www.lundin-petroleum.com/investors/
Is their a recording of yesterday’s cmd or if not why not ? Thanks
That was what we got yesterday, but in increased profits - not reduced profits or losses. What other conclusion can you reach as debt reduces and FCF funds organically increased reserves at low cost, "short cycle, high return". On reflection I'm much happier with the presentation. I've pretty much given up on peer comparisons because it is near impossible to get a close match. Lets face facts and admit we're not even close to glamorous. I've found a peer in that sense. Accrol Group, who should have a future whilst I've got a hole in my *rse. I chose them because they produce what I consider an essential as is oil imo. OK, you could swap the car for an ox-cart or start using dried grass but personally I'm not changing and I suspect I might be with the majority. We then have the decommissioning requirements and potential of new systems for carbon storage and offsets. Decommissioning for Accrol is just a flush but like oil it relies a lot on pipework and refining of production. As I said, not glamorous.
As expected The Times didn't pick up on the CDM and maybe it's time to adopt the Millwall slogan, "No one likes us, we don't care". I'm not even sure that's true. Most don't seem to know we exist. There are many businesses that have a low profile but they are a safer bet than many glam stocks. Google, Facebook etc.. are ubiquitous and glam but they rely on servers and men laying cable who are essential but seldom seen.
EnQuest is a true contrarian bet. You won't be able to brag about its success because nobody will have heard of them. They'll be known and respected in the industry but have absolutely zero interest for day traders and those looking for a high. I'm fairly sure this is the attitude of the EnQuest mnanagement too. The CDM was low-key and if analysts don't like it, tough. I'm unhappy about market reaction but if fundamentals mean anything this is a value stock.
Build it and they will come unless they rate glamour or populism higher.