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There are periods between invoicing and payment received as a matter of course anyway, and I guess that's a 'fluid' period at the best of times in Nigeria... and - very ?- likely there are some cumulative arrears in certain situations from well back anyway.
My guess is along the lines of lumpy payments every now and again are received to pay some portion of the overall o/s bills.. some maybe large pay down others smaller depending on differing circumstances at a given time.
So, including Co-Vid and collapse of O&G prices generally, I'd be stunned if they're being paid fully/near fully in the short term for gas/extra gas being supplied in April and May for eg.... more like the - further - accumulating total bills will be paid down by irregular increment over time.
So AK may be waiting until he's had some - hopefully chunky - o/s incremental payments banked before giving a big picture update of amounts owning versus paid. and/or towards deciding when he must escalate to the powers that be towards achieving agreement to evoke some/all of the guarantees in as optimal a way as possible around the concerns/needs of all interested parties. ( the latter taking time to agree and might include the powers that be pushing debtors to pay SAVP another chunk now/soon etc..)
I hadn't read Zengas's latest post before posting mine.. so plenty of 'snap' / agreement in the latter part of his post of 2.14 and mine.
Thanks Z and NtM. My thoughts too. I don’t think they know if their current invoices will be paid on time. They might not have received payments for 2020 Q1 supply as yet.
Doesn’t look like anyone know their invoice and payment terms.
The only justification for no Covid update is that might be politically sensitive. ie SAVP trying to appease Nigerian Govt. I note G20 have now agreed debt defaults till year end in order to help countries such as Nigeria to cope. This should help Govt cash flows although reality is that defaults looked inevitable whatever
However this an unprecedented situation and I can’t see why Govt would be ‘offended’ if SAVP spelt out current situation and explained the process of invoking the World Bank Guarantee, if only as a safety net. Anyone know how this Guarantee is triggered? I assume have to issue default notice after x months of non payment.
The concern is the debt pile that SAVP took on board with 7E deal. Maybe they are renegotiating this.
Whatever, why can’t they say what’s going on! We all understand that there are massive sector problems, hence share price down nearly 75% from year highs. Leadership is about being open and honest at such times, not alienating shareholders by appearing contemptuously indifferent.
Time will reveal why no update but unless damn good reason, many of us will sell out into next bounce post AGM vote!
Well the share price has fallen from 35p to which we were told was a value enhancing deal for all shareholders and would underpin/derisk us through guaranteed gas revenues plus any new customers and less dependent on oil. My point is - how in the face of such share price destruction/performance can any further bonus be paid if the remuneration committee are reading this ? Also the $5m loan which was to be settled around 17th Jan 2020 was not mentioned again in any shape or form until 6th March and is extended to 6th June. If bonuses weren't handed out so quickly until the company actually delivers, there would have been less need for most of that $5m in the first place.
My comments then on 15th Jan 2020 in which the share price has fallen from 22p by a further 66% in that time to 7.5p and which can't all be blamed on the CV-19 outbreak. Therefore any blame attached to the CV-19 outbreak by the CEO/Chairman does not address the dire performance prior to this and the lack of delivery on past guidance.
AK: "Our focus in Niger in 2019 will be on testing the Amdigh-1 discovery, delivering first oil from our R3 East EPS, and commencing a further exploration programme in the second half of the year, potentially with a partner. We expect this process to be one that adds significant value for all of our stakeholders".
'Lets hope any bonuses under consideration if any for 2019 are suspended or cancelled and that the remuneration committee wake up to the fact that nothing has been delivered at any point since listing in terms of any growth for shareholders. Some of those dozy old compliant codgers should consider this fact when they're patting each other on the back about jobs supposedly well done and see that the company actions have repeatedly sent the share price south with every passing year.
Meanwhile let's see if the $5m short term loan is repaid in cash or by shares.
CEO Pay/bonuses
y/e 2014 paid $352k
y/e 2015 paid $671k
y/e 2016 paid $886k (of which $278k being his bonus)
Y/e 2017 paid $1.814m ($1.248m being the bonus)
y/e 2018 paid $2.1m ($1.4m bonus).
y/e 2019 to be announced
In 5 years (2014-18) including pension contributions he's earned $5.8m while the share price has been decimated
Unless he starts to get the share price up, deliver on promises and explain the dividend ambiguity then this progressive enrichment has to be nipped entirely in the bud and linked only to share price performance and every shareholder should make their feelings known about this to IR/JL/Remuneration committee and AK himself. It simply isn't good enough and has to be challenged. Going on 7 years and only 5 wells drilled in Niger - shameful.'
Pay cuts/ staff reductions should be on the cards if there has been no improvement in outlook.
Well said! I Couldn’t agree more!
Another Zengas post! You should represent us PI all to voice this to the BOD. A lot of us have been saying the same thing.
AK should repay his 2018 bonus, and receive no bonus for 2019. Way too greedy. Literally write his own paycheck. Something needs to be done.
Zengas fair, knowledgeable and balanced as usual I get irritated on the occasions that you are unfairly accused of being a ramper. I was starting to get tempted to get back in but have decided to wait.