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the low oil price sucks but Petrosakh has been selling at all prices throughout the ups and down, and UEN do make operating profits, its just been offset with high expenditure on investments and partly with financing costs.
2015 brent oil averaged ~$52 and they made a $3m operating profit.
2016 brent oil averaged ~$43 and they made $2m operating profit.
2017 brent oil averaged ~$54 and they made $2.4m operating profit.
2018 brent so far averaged ~$72 for the year and we were at $1m profit on the half year results, which is excluding both tankers from Arcticneft (which will total ~$19m revenue) so that $1m is just from the sales at Petrosakh. still could see full year results with ~$40-$45m revenue. (possibly plus any income from the port ie dividend from the 23% stake?).
You never know, we might see a few of your points come true before long.
and no movement. If that was a sell then the MMs would have moved it, down!
that's like looking Santa to come early with all the presents
Good job our tanker got priced last week.
Just need an update on payment, notice that we are prime supplier of fuel to the Sakhalin Port, Kononov has stumped up some of the cash, discussions have successfully finished with partners and contractors for the next stage of exploration drilling at Komi and for the further development of the Group's reserves on Kolguev Island, and divi reinstated.
Not too much to ask for?
Yes total joke
Notice ukog are hoping to have revenues of 1m a month end of 19/20 ! We are over a million a week with a Mcap of 4m compared to 80m ! Makes no sense even with the spat going on.
Yes, even with poor oil price, $1.6m cash in hand, plus the $750kmodd saved by not paying the divi. Makes me wonder how the claimed working cap shortfall exactly equals the amount Kononov shelled out to secure control of the Sakhalin Port.
As for the accountants review, they're probably n a day rate, so I expect their report around this time next year. The Company could have used what they're paying them to pay a divi instead. I would say they make Theresa May look competent, but thats a bit too much of a stretch.
Great no immediate threat then, can’t be far off the mcap in cash.
If you have a look at the last rns it says that the 4 mil is for working capital as well
Its the 10th day and Brent’s averaged around $65-$67 for the 6th-10th day after. MA10 is $67.50. So we should have around $10.5m minus the -$5m and -$4m loans which leaves us with $1.6m. I was wondering if the extra $4m loan was all used on taxes and boat costs, or wether we have some cash left from that loan. Will find out soon I guess
It is annoying, but we are still going to get a lump sum payment of almost double our market cap. Next week.
shame we weren't loading the tanker a month ago around the high point for brent oil.. could have been looking at nearly $3m extra on the load.. i guess that's the downside of having two shipments a year
Yep, LDC and petrosak are all part of the group so far as I know.
I Wouldn’t be surprised if we own / part own “JSC Lipetsk Distillery Company ("LDC").” Or atleast have had our money pay for it. Just not officially.
THIS IS WHAT THE HIGHLIGHTS OF THE 28TH SEP R,N,S SAID
Mr Andrew Shrager, Chairman, commented: "The results for the first half of 2018 have been affected by a combination of lower production volumes as we see the continued natural decline of our production at Petrosak, increased production taxes, and having to hold large stocks valued just at cost, as our first tanker was not loaded until after the period end. Nevertheless, EBITDA was positive at over US$1 million, and even after some US$5 million of capital expenditure, our term debt position remains comfortable."
"The most important events of the period were the successful work over of well No 7 and the potential discovery well No 1 at South Dagi, which should progressively help to offset the decline at Petrosak. The acquisition of a shareholding in the most important port on Sakhalin Island is part of the strategy. The objective for this investment is to secure the future of our refinery at Petrosak, improving throughput and margins, which we expect to see over the coming months."
"We have initiated a plan that could allow us to acquire our own fracking fleet for Articneft and continue to investigate partnerships to develop our Komi reserves and resources."
"We remain confident that we can build a long term future for the Company, but believe that shareholders should share in our results, and so are pleased to confirm the intention to propose at the AGM in November that a dividend should be paid for the period to 31 December 2017 that is equivalent to last year's dividend."
who is Shvets who is alder Loan was authorised by Mr S Kononov, a representative of his family's interest in 44 per cent of the Company's ordinary share im reading through all the R,N,S but am slightly lost I keep pointing out that we own 23% + 19% of the port we have 5 of the 7 board members it obviously suited to acquire the extra shares in the port we have not lost money urals has acquired all these companies in the last 13 years Arctic Oil Company May 9, 2016 — Arctic Oil Company acquired by Ural Energy Management Company BVN Oil Ltd Nov 19, 2015 — BVN Oil Ltd acquired by Ural Energy Management Company RK-Oil Nov 19, 2015 — RK-Oil acquired by Ural Energy Management Company OOO Verhneomrinskaya Neft Oct 5, 2006 — OOO Verhneomrinskaya Neft acquired by Ural Energy Management Company Lenskaya Transportnaya Kompaniya Jun 12, 2006 — Lenskaya Transportnaya Kompaniya acquired by Ural Energy Management Company ZAO Arcticneft Jul 26, 2005 — ZAO Arcticneft acquired by Ural Energy Management Company Petrosakh Private Joint-Stock Company we own all of these , we just need a bit more clarity
I posted this on advfn board can somebody else enlighten me on what im missing
It’s such an unstable market, oils up a tad but Gas is up 15% today. Someone or a group with deep pockets are manipulating the commodity markets big time and not even being coy about it.
I have no idea how the tax works itsagame. Usually you get taxed on income though. If they are paying tax when they pump it out, then have to wait until they can ship it to sell, there is a clear need to be hedging that.
I would have thought they could hedge some but they would probably need a sizeable cash deposit on the hedging facility as the Arcticneft shares and petrosakh shares are used as security already for other loans most of the time. Again it comes down to cash flow and building up some cash reserves. Would be a different story if they hedged against 2/3rd of Arcticnefts oil at $85 which would have covered running costs and then let the remaining 1/3rd float. But with UENs luck if they did that the oil price would have gone to $110 and the extra taxes and royalties they would have to pay would have made them still loose anyway. I don’t know where we stand with the export taxes at the moment if we shipped out and paid them last week based on $71 and we actually get paid $65 have we lost a bit there aswell?
It's annoying for sure. If only we could have shipped a couple of weeks ago. Is there any reason the company can't hedge some of the tanker oil? We could have locked in a much better price.
$65, thanks Trump, you couldn't have waited till next week.....
Always a risk but at the rate the oil price is changing, getting the tanker away early could be a blessing. Brent $68 now, 20% off its peak. For every bullish oil story there is a bearish one. One pointing out Canadian oil being sold at $40 yesterday and debottle necking their pipe line will push it lower still unless they limit sales, the Saudi and Russian ones hinting at lowering output. Who knows where it will end up, fingers crossed the higher margin port and petrosakh refined products will prove to be beneficial and the finances are sorted out sooner rather then later.
as someone pointed out recently for every $1 rise in the price of oil our shipment of oil goes up $157000 we may see any thing up to another $1m - $1.5m for the shipment . oil market set to be bullish this week
Has bouncd back a bit this morning. I see OPEC were musing about steep cuts over the weekend. Fingers crossed the price can hold through this week.
Accountants' review
As indicated in the Company's announcement of 23 October 2018, the Board is appointing an independent firm of accountants to perform: (i) a review of any transactions by its 98.56% owned subsidiary, JSC Petrosakh, since 30 June 2018 that are outside of the ordinary course of business; and (ii) a short term working capital review.
they must be of the opinion that all acc and transactions were all ok and above board up until 30 june
We still own 40-50% of the port . We still have a tanker payement due for aprox $11- $12m . We just need a bit of clarity on were the money has been spent