Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
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So the higher the oil the better the day rates therefore more profit....... oil is improving or going up
Just my opinion.
The whole markets was under pressure (general market trend)since Aug/Sept last year until xmas.
Most shares took a tumble. GMS too. (forget loans) That was oil price related imho.
If oil was at 140 a barrel and predicted to be at over 100 for the foreseeable future (as was the case a few years ago) the workload, order book the day rates would be at a level that gives 220 Million+turnover.
IMHO I know others will say the works there anyway, but shortage of vessels and staff globally increases the day rates, The increase in oil price will increase day rates (albeit delayed) imho this will lead to increased turnover and thus profitability. That's why I reckon 30's to 40's is not unreasonable if the fear factor is removed.
That’s reassuring Pbody, the fact Seafox bought in at 18p bodes well as they saw huge value at that price. Pardon my ignorance but just explain to me how the oil price has an impact on the SP please .........
Today, after your message Ned, I had a good look online trying to gauge the "internet" feel for GMS.
Nearly everything indicator out there says sell.
I am not sure if this because they are not updated and from earlier in the year or whatever reason. Most tried to sell you something else.
However anyone looking up GMS would probably not invest or think of selling. Fear being the driving factor probably.
The fact there isn't massive selling shows you the investors have faith. New investors would have to look beyond those indicators...
well the sp could drop to 10p! it keeps trickling down! I hope not!
but no, not from that RNS.
its an issue (around 1/2 million shares) for share incentive plans.
not to raise money.
I have seen some firms "pay" bills with a small issue, but this isn't for that,
Does that mean we'll see the SP drop to 10p when this occurs? Someone will need to explain this one to me, I've not encountered an additional listing before.
https://www.share.com/investments/shares/21613/gulf-marine-services-share-price#brokerviews
You probably have seen it already.
I wont post much more as I dont want to drag back to a week old RNS.
Ned,Phil, GFD, timmy and others thanks again for your concern.
Suffice to say GFD your probably right, the Chairman wants to get the lie of the land. The CFO was due in June iirc from the website.
The finance restructure taking place before his appointment. Perhaps he is partly involved now and will make it official at the time? They did mention the old Chairman was still in contact, so involvement my not be as hard and fast as a set date.
I still think the turnover (really) HAS to be above 135million. Small vessels are still underutilised.
I can understand the chicken and egg situation here. You dont want to have idle vessels but you dont want to agree to contracts in the pipeline where the customer has you at an advantage.
In that respect in the medium term GFD may be right if the turnover does not get past 135 million.
Refinancing being the key to unlock the stability going forward. These interest rates (I am sure) can be better negotiated for a more stable footing as some have suggested. There is a big increase in the last year and a figure lower than 2017 should be a target not 7% also there is a close to 2 million shortfall on exchange rates (that is BREXIT) related.The exchange rate moving forward should give us a win of a couple of million.
Lets hope the refinancing can get us back down to a reasonable interest level of interest.
I am not sure if there is the option of a few years of nil interest to get through a lean period? That would reduce the sweat on a lot of peoples palms I am sure.
From the RNS.
Finance costs and foreign exchange
Finance costs increased by 34% in 2018 to US$ 31.3 million (2017: US$ 23.3 million excluding non-recurring refinancing costs of US$ 15.6 million), reflecting an increased cost of bank borrowing to US$ 30.6 million (2017: US$ 22.2 million) as a result of both increases in LIBOR and higher Group net leverage. The average borrowing rate in 2018 was 7.0% compared to 4.7% in 2017. In addition, no finance expenses (2017: US$ 3.3 million) were capitalised during the year following completion of the new build programme in 2017.
In 2018, there was a net foreign exchange gain of US$ 0.3 million (2017: US$ 1.9 million) arising from movements in exchange rates of the Pound Sterling and Euro against the US Dollar, the Group's presentational currency. The Group entered into new arrangements to partially hedge the volatility of movements in exchange rates as well as interest rates.
You will have to look at my previous posts on the board about overseas reporting percentages GFD. But I think if it crosses 3,5,10,15, 20 etc. iirc. from 18th march.
Lets hope the renegotiated finances take into account a drop of nearly 100 million in turnover?
If they dont increase the revenue or reduce the payments the problems will keep coming.
LETS HOPE ITS A HOLE THAT CAN BE "WORKED OUT OF"
Great to have you back, alive and kicking Pbody :-)
Indeed the 27th.
Looks like someone bought and sold 2%??
Then bought 4%?
Seafox? ramping up again? I thought they have stopped acquiring?
Yes NEDHAMMER and others thanks for asking and being concerned.
I am not that old yet...but there will come a day.
My phone provider turned the phone off for a week and thus no internet! I couldn't make phone calls either!
What you get for all online I suppose. Not sure if it will go again! They have yet to explain why!
Since I have looked into "free internet" more than anything. Its surprising what there is! (If you have the internet to look it up). Back to GMS.
I have read the financial statement. Most will have moved on I suspect.
It is pretty much what we expected. Revenue was down for the amount of work.
Not a great outlook in general, but better placed than most the competition.
Earlier rather than later to renegotiate with financiers where possible to allow long term operation in a industry "lean" period being ideal.
My take on it is the poor exchange rate will have effected the European operations money back in the coffers somewhat with a low pound/euro to dollar rate. That is where BREXIT has had some effect.
As others have pointed out the Lenders repayments are killing at the moment, particularly as payment for vessel transport is not always paid on time and the recovery of that can knock on to the next quarter.
This working capital (of between 30 and 50 million) to move the equipment to locations is causing us unforeseen costs as late payers mean we use our capital as a buffer. Were talking 3 or 5 million here. Just on late payments.
Perhaps this borrowing facility will be the first they intend to renegotiate as it is relatively short term and a 50 million float seems excessive. But it looks as if its a headache that wont go away.
Reading back there were some serious trades carried out last week, I hope if there are any large holders changing their position they are notifying GMS and the RNS will be updated accordingly.
What is interesting to note is the New chairman has not bought into the shares yet.
I am presuming that will happen in the new year or when any financial renegotiations have taken place to show faith in the future. I read somewhere there are 6 banks in the syndicate.
My (only) worry is if they dont get a good deal at this point (where borrowing money globally is very very cheap) they will struggle later to match it or use the financial situation to help deleverage the position at a time when the words "industry lean period" look set to be the driving factor in foreseeable future.
Sustainability is the long and the short of it.
A better footing for the knocks that have yet to come.
Lets hope there aren't any but if there are we are better prepared. The safety is exemplary long may it continue.
I've noticed with many stocks, it really doesn't take much to drop the SP; even a quite small sell in the grand scheme of things (£100-500) can have signifcant negative impact, even if the buys beforehand were ten times as much. Any seasoned investors know if this is normal, and if so why? It's frustrating... haha
Seriously my son, you ok?
Once they are cleared this moves up. Char was another one that showed a big sell from CF shares today.
Buy - 27p
City financial had 11m shares. Maybe part of those. The administrator has been dumping Cf shares in miri today as well.
I'd take that as a good omen.
It looks like activity increasingly significantly - don't want to be ramper.
Enjoyed the webcast - I took a lot more positives than negatives especially considering the tough backdrop.
Definitely in a very good place to recover and that board have and continue to take, decisive steps.
Looks like a disco going on!
Looks like someone is seriously taking advantage of these rock bottom prices.
a little bit
He’s run off to Mali , he’s heard of this stuff called Lithium that’s going to replace petrol . Pick axe intow :-)
I was wondering the same thing. His insight/opinion is welcome.
Where are you my Son?