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Sergei Uzornikov, CFO, has an extensive financial experience in oil and gas and power generation sectors. He started his career in PwC’s audit practice and after that has held senior positions in Yukos Oil Company, Lundin Petroleum Group and Enel OGK-5. Mr. Uzornikov graduated from Moscow State Institute of international relations and the Skolkovo executive MBA program
back to what we have been saying all along . I think they have just got caught out in the amount they have invested
in the port and it has made finances a little tight
That’s the view of most here atleast for the last 2 years that I’ve read the bb here, When you find out let us know! In a nutshell it generates a lot of money but has high running costs, oil price has recovered the last few years but they do actually make money now. But this year it has invested (directly and indirectly) ~$5m in the port plus other things like drilling and keeping the old wells going and upping production rates. To give an idea of the size of the company they have ~600 employees across the group. Until they build up a pot of cash in bank and clear old debts by either paying them off or restructuring it ie long term loan / bond etc It needs the oil price to stay high. They are running it on a knifes edge but hopefully the investments this year pay off. A good place to start is here : http://www.uralsenergy.com/archive/presentations/Urals_Inv_Presentation_20_11_2017.pdf?v=231117 And obviously the latest rns’ GL
Hello. ive recently been watching this share and cant help but think this share is undervalued. small MK cap and small number of shares in issue. so why is the MK cap so small when tanker payments are similar to the company value..... Am I missing something apart from dodgy accountants?
Still would have been nice to have the extra $1.5m if oil stayed at $85+
About time ,these issues were sorted out .
Best of All
& Developed reserves for continuing operations and potential reserves for new developments assessed at a total of 178 million barrels of 2P by Blackwatch Petroleum Services
& Successful drilling of South Dagi workover well No 7 and subsequent potential discovery at first exploration well No1, aimed at gradual offset of natural decline of Petrosak production, though this has now stabilised through additional work overs at approx 900 bbls/day
& Investment in the main port of Sakhalin Island, aimed at improving margins for fuel oil and providing extra storage for Petrosak production
& Production at Articneft continues at approx 900 bbls/d, but first tanker loading of the year delayed until after the interim period end
Key Points of the Company's activity for the six months ended 30 June 2018:
& Profits and cash flow for the period affected by the decline in Petrosak production, increased Russian production taxes and exchange rate movements, as well as the delay in the sailing of the first tanker loading, affecting revenues and stock levels at period end
& Board confident for the year as a whole, and has confirmed intention to recommend to shareholders at the AGM to be held in November a dividend for the year to 31 December 2017 that is equivalent to the first dividend paid last year
brent above $73 again
$11490200m due in next 2 weeks
Mm have always throttled this. It's going to be a bugger getting this back to above a pound.
The sooner this in fight is settled and get the money back for Koronov mans loan at least then get a good loan to allow us to press on quickly the better.
Mr Kononov is the priority buyer. Lol, who knows. They don't want to let it go up, although they were quick to mark it down. They're meant to make a market though, not throttle it.
phoned the dealing desk can.t buy .have to set a limit order
Well maybe someone is/wants accumulate.
can sell as much as I want but none to buy
ITS ALL THERE IN THE R,N,S
Once the first part of the Accountant's review is complete, which should identify the scale of any unauthorised transactions outside of the ordinary course of business, further discussions can proceed in respect of options to reverse the transactions, which were authorised by Mr Kononov, and/or the return of a certain amount of working capital from the Kholmsk commercial seaport. The Board will reserve the right to take any actions to protect the interests of shareholders and creditors.
the way I see it is that the bod authorized The Company's Petrosakh subsidiary has acquired a 23% voting interest in the Kholmsk commercial seaport, which is situated on the Western side of Sakhalin Island. The Company's interest in the Kholmsk commercial seaport is comprised of 17,858,826 ordinary shares (out of a total of 64,940,000 ordinary shares that are in issue) and 2,262,000 preference shares (out of a total of 21,646,000 preference shares that are in issue).
they also didn't take into acc that Mr S Kononov, could buy more
if you look at the share capital of the port in total 64,940,000 ordinary shares
urals and company own 54'8% of the port
looking at it this way are we more financially constrained because we own more of the port
if you look at it that way the company has more asset than it had before
even if you take away the Shares sold: equivalent to approximately 11.9% of the voting rights of the Kholmsk Port.
we still have 42.9% of the port remaining and we now have 5 board members of the 7
I still see it as a win win although we are a bit more in debt than planned
I still also be leave we own the 11.9% shares in the portLender: JSC Petrosakh.
· Borrower: An individual, Mr Y L Freidis, an employee of JSC Petrosakh.
SIT TIGHT EVERY ONE
Chavi, on 15 Oct the RNS said: 'Under Russian Law, the President or General Director of a joint stock company, which is the legal incorporation status of JSC Petrosakh, has authority to approve any action, including contracts, loans and asset sales within a limit of 25% of the capital employed of that company, and in this case the employed capital of JSC Petrosakh is approximately US$30 million.'
The Company have acknowledged that the spending by Kononov was a) to secure an additional 19.9% control over the Port at arms length, b) to secure a further 11% odd control over the Port, in the run up to Port Board elections, then to dispose of that holding at around the purchase price, although some of the sale proceeds may still be outstanding, and c) to make a loan to the Port as a working capital advance.
There is no fraud, just a breach of internal controls (by someone who owns over 44% of the company) to set priorities for working capital deployment at the discretion of Mr Kononov, not the Board, and putting the interests of Petrosakh abve those of arctikneft.
This is an internal matter that should have been dealt with internally, but bviously the Board feel they have no control over Kononov so have decided to air the dirty washing in public, trash the share price, and make wild threats about calling in administrators.
But I do agree, they need to sort out their finances to get them secure on a long term basis. They are earning enough to do this ferchrissake.
Reading between the lines it's clear to me they strongly suspect fraud and intend to find out where and who. It's also clear to me they failed in their governance for this to happen. The thing is it's going to take a long time to get back trust and for this share to come back. It's going to take alot of good news by way of high production and profits to do it. And in mv the only way to achieve this is to get a good sized loan to let them get a lot done very quickly and have the oil and money pouring in.
28 Sept: our term debt position remains comfortable
10 Oct: The Board are of the opinion that if the Loan ($1.5m) is not repaid, or alternative financing is not secured, by the end of the month then the Board will have to take steps to protect the interests of the Group's creditors.
15 Oct: a combined current working capital deficit of approximately US$1.6 million. In addition, the Group has made working capital advances to the Kholmsk Port totalling approximately 100 million Russian Roubles (approximately US$ 1.5 million at current exchange rates).
23 Oct: the Group will continue to face a working capital deficit of approximately US$3 million (by the end of November)
Today: 'The Board believes that the Group will continue to face a working capital deficit of at least approximately US$3 million in the coming months' - and they're so worried they haven't even appointed the accountants and agreed scope of works yet.
Honestly, the company still looks to be sound, Kononov must be taking the position that his actions were both in the strategic interests of the company and affordable. The biggest worry is the Board who are partially in control. They're all over the place and totally trashing their credibility. They need to go to restore confidence. And what about the AGM?
On the upside, they've backed off saying they are goung to put the company into admin, either today or at the end of this month. Clowns.
A lot of taxes are paid up front hence the loans from Petraco before the tanker comes but some must be paid periodically after it would seem.
“accumulated Mineral Extraction Tax for Arcticneft” Does that mean we’re on top of back dated bills and will keep more cash on future shipments?
It would seem to me we are ok for now. The important bit for me apart from their saying they are looking for other money and do their best to look after shareholder interests is that last bit. They still have the support of the Bank.
If they are confident of that support we live to fight another day.
Continued* Working capital Once the first part of the Accountant's review is complete, which should identify the scale of any unauthorised transactions outside of the ordinary course of business, further discussions can proceed in respect of options to reverse the transactions, which were authorised by Mr Kononov, and/or the return of a certain amount of working capital from the Kholmsk commercial seaport. The Board will reserve the right to take any actions to protect the interests of shareholders and creditors. As noted in the Company's announcement of 23 October 2018, the Group's working capital position is highly constrained and remains subject to a number of variables and the Board believes that the Accountants' review is an essential step in determining the financial requirements of the Group. The Board believes that the Group will continue to face a working capital deficit of at least approximately US$3 million in the coming months, unless the unauthorised transactions referred to above are reversed. At present, the Group's banks remain supportive. Further announcements will be made as appropriate.
Further to the Company's recent announcements (made on 23 October 2018, 15 October 2018 and 10 October 2018), the board of Urals Energy (the "Board"), the independent exploration and production company with operations in Russia, provides the following updates. Tanker update The tanker is currently at Kolguev Island, and preparations for loading are in hand. The Board anticipates that loading should commence shortly, assuming no change to the current weather conditions, and that the Group will now likely receive the proceeds from this shipment in the second half of November 2018. At current Brent DTD prices, the board anticipates that the net proceeds of the tanker shipment (after, inter alia, export duty payments and tanker charges etc.) will be broadly in the region of US$7.5 million. After repayment of the current pre-export finance loan (which was announced on 10 September 2018), the cash receipt by the Group will be in the region of US$2.5 million. This is a provisional estimate, which assumes that the tanker is fully loaded and also makes a number of assumptions regarding the timing of the shipment and Brent DTD prices for the 6th to 10th days following the date of the bill of lading. After accounting for operational costs and the accumulated Mineral Extraction Tax for Arcticneft (as announced on 23 October 2018), the net cash available to the Group from the tanker shipment is likely to be minimal or marginally negative. 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. The Board has been working with the UK and Russian divisions of a firm of accountants (the "Accountants"), in order to progress these reviews, although it has taken longer than anticipated to agree an appropriate scope of works and for the Accountants' fieldwork to commence. The Board believes that the review of JSC Petrosakh's transactions outside of the ordinary course of business should be undertaken by the Accountants' Russian office, while the short-term working capital review, which will examine the forward-looking period to 30 June 2019, should be performed by the Accountants' UK office. The Board cannot exclude the possibility that further unauthorised transactions which are outside of the ordinary course of business (in addition to those described in the Company's announcement of 15 October 2018) will emerge from the review which is being undertaken. However, the rules for corporate governance have been reinforced to prevent further unauthorised transactions. Working capital Once the first part of the Accountant's review is complete, which should identify the scale of any unauthorised transactions outside of th
“The Board will reserve the right to take any actions to protect the interests of shareholders and creditors. ” Note : Also says protect the interest of shareholder now aswell.
if any body reads through the rns carefully they will see that the first half of the year did not include the first tanker shipment
For the six months ended 30 June 2018, total gross revenues decreased by US$14.9 million. This decrease was due to a US$4.7 million decrease in gross revenue form the local market and US$10.2 million of export revenue from Arcticneft as the first 2018 export shipment from Arcticneft was completed in July 2018, outside of the interim accounting reference period.
this all says that we acquired that we received our 23% share of the port in the first half of the year In June 2018 the Company acquired a 23% voting interest in the Kholmsk commercial seaport, which is situated on the Western side of Sakhalin Island. The seaport has bunkering facilities to supply fuel oil
the company did an awful lot in 6 mounths for having no money
I still be leave it is smoke and mirrors but time will tell
Quite right defender. The July tanker RNS was perfectly clear, "net" proceeds of $8.4m, not gross proceeds. I'm anticipating net income around the same with this tanker, which means "net" income of around $17m in the last 4 months from Arcticnef alone. Production at Petrosakh is roughly equivalent, but should generate a better income as they don't have to pay to store it long term until a tanker load is ready for despatch.
The big problem for the Board is how to reverse out of the situation they have created with minimal egg on face and hanging on to their jobs.