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Hi everyone,
Some retail shareholders in Norway and the like, are joining forces for the AGM next month on writing some question especially regarding G&A expenditure, to point out that we feel that the board and management not have delivered what they promised, after the delist of OSE and restructuring of the company.
You're all invited to join forces, and add further questions. We're are currently focusing on these; Dissatisfied - about the level of G&A spending, after the promised "substantially less" G&A expenditure at Oslo meeting 2018, due to the OSE delist, shrinkage of the corporate complexibility, closed offices in Mozambique & Calgary, executive management restructure (No CFO & Investor relation), and as we believe an exaggerated level of board compensation, given the fact that we're a non-operator, one asset company (Minimal board work). G&A spending in 2017 was 4,6 mUSD compared to 5,9 mUSD in 2019. We feel, that we should at least be able to get on-going G&A, below the 2017 level.
We're counting shares on a google docs sheet, we're planning to add to mail, you're all welcome to join, and add questions. We've already gathered more than 10 mln shares.
https://docs.google.com/spreadsheets/d/1WydFSRGIwjyd9tQQSmndGo_JvQvBgkX9WmHWbuZfz5I/edit#gid=0
Hi MikkelSchmidt
Would add what is the next phase of Wentworth , with other company's at rock bottom due to cash flow it be the ideal time to take a stake in a company or assets in the Gas sector.
As you said we only have one Asset.
Hi MikkelSchmidt,
I like your initiative, but with Eskil off the payroll now (850k total renumeration in 2019) and reduced screening costs I don’t think it is very challenging to save 1.3 mln on G&A in 2020. Katherine will happily agree, I think.
Personally I’d like to make it a lot stronger, with some sort of ultimatum in fact:
"Finally deliver real growth in 2020, measurable in terms of net production and/or reserves, or accept a true non-operator role and reduce G&A to the absolute minimum (less than 1.5 million in 2021), while putting the company up for sale.
For me, the worst scenario would be if WEN acquires a stake in Ntorya this year, and starts spending money on a risky development to ultimately compete with itself in Mnazi Bay"
By the way: I see only two growth opportunities in Tanzania: either increase our stake in Mnazi Bay or a invest in a new development in the north of the country, to compete with PanAfrican (Orca), delivering gas to the new SongoSongo facilities.
I have added my shares (as Mick) to your list though, good luck.
Hi Mick
Really happy to see you joining, you're perhaps the only reason I follow this site, thanks to every insight you have brought to the table, I think we're many who do appreciate them. I couldn't agree more in what you are saying, and I take your point, that to benchmark the G&A against the 2017 level is in a sense to easy to accommodate.
I personally do believe that WEN organization aren't capable enough to capitalize on growth opportunity outside organic growth by just sitting on MB as a non-operator (Buying into Ntorya truely sound like an awful idea). We simply don't have the track record and without Eskill, i believe the clear path for WEN is to be the dividend play your taking about, with minimal G&A cost, and that'll also give us the option to be bought out eventually, which also will be more compelling for a potential buyer given the better free-cash flow multiple.
Would you be up for writing a draft with your proposed sort of "ultimatum" I could present to the Norwegian retail shareholder base, or would you rather prefer me doing it.
All the best
Mikkel
Mick, do you know anyone of the large institutional investor, whom we could reach out to, to hear if their consensus in a way matches ours?
Thanks Mikkel!
I agree with you: I also don't expect that WEN will be able to capitalise on growth opportunities. Last year the company was focussed on securing NAV accretive deals (obviously nearly impossible with a core NAV of ~ 2x the market cap), while the focus now is on growing WEN’s presence and foothold in-country… Something I personally actually dread.
Instead of growing the company further, I fear Bob is hobby horsing and has almost turned into some kind of missionary, focussed on improving the lives of the poor in Tanzania. At least it would explain why we keep such a large office in Tanzania. All very honourable of course, but that’s not why I invested in Wentworth (remember we were promised a rate of 130 MMscf/d by the end of 2016). Katherine is just very English: don’t expect a clear answer on any particular question that you may have.
I’m not very good at phrasing things neutrally, but what about the following:
“We, a group of Wentworth shareholders representing xx% of the total votes, are not satisfied with Wentworth’s performance. It is our view that the G&A costs remain disproportionally high, despite repeated promises to reduce it significantly. In addition, the company has failed to delivered on any growth promises made in the past, either through acquisitions or natural growth.
We propose the following:
We expect Wentworth to deliver real growth in 2020, measurable in terms of net production and/or newly added reserves. In case the company fails to deliver on this once again, we want Wentworth to truly embrace their non-operator role, and reduce G&A costs to the absolute minimum in 2021. The aim should be a G&A spent of less than 1.5 mln in 2021”
Hope this is a start! Please go ahead and present it to the Norwegian shareholders (I’m not Norwegian myself by the way)
Finally, I do know somebody within a larger institutional investor that has invested in WEN, so once your list is ready and has some support, I’ll send it to him has well.
Thanks, we're on our way.
There is one thing that I'm afraid of, when keeping the door half open to pursue that growth. When allowing the growth mandate for another year, we risk that the board would rather do a bad deal than no deal, to support their high compensation and elevated G&A spending. Cutting all that away instantly will bring the risk-premium materially down, in my head at least.
It's really neat that you have that contact, that'll come in handy, i'm sure.
Mikkel,
I doubt that we will get enough votes to enforce anything at all, but a coordinated shareholder intervention might frighten Bob and Katherine a little bit already... which is always helpful!
If we can get to 20% on a retail count (16,2% at the moment), we only need the largest three institutional to support. If AXA didn't just bought 8 mln shares., then it looks possible just with to large institutional and 25% retail.
Added Mikkel to your list , 18% is a good show
Agree with below points all made
My point is with the capital to invest in distress shares in company's in the gas sector as a share holder , other then that im cool or max the output with limited costs with higher profit
To all shareholders, please register your name + number of shares in the document below if you agree that the company should reduce its G&A expenditure significantly. Thordon, can you perhaps post this on ADVFN as well?
https://docs.google.com/spreadsheets/d/1WydFSRGIwjyd9tQQSmndGo_JvQvBgkX9WmHWbuZfz5I/edit#gid=0
mick2020 posted on ADVFN
Hi Mick,
The spreadsheet seems to have reached a standstill of about 38,1 mln shares representing 20,69%. It would be really interesting to hear if your "contact"/institutional investor would agree on the consensus among retailers, could you try and send the list to them? You can download it directly on the docs sheet, or just send them the direct link. https://docs.google.com/spreadsheets/d/1WydFSRGIwjyd9tQQSmndGo_JvQvBgkX9WmHWbuZfz5I/edit#gid=0
Mikkel, how/where can I reach you privately?
mikkelschmidt90@gmail.com
Well it seems to have settle now in the vote ; as a whole for small share holders a good turn out
Item 1 ) DISSATISFIED
38.666.082
21,00%
100,00%
Item 2)FOR
34.412.096
18,69%
100,00%
Item 3 )FOR
2.751.500
1,49%
61,75%
AGAINST
1.704.717
0,93%
38,25%
An excellent result, and many thanks to Mikkel for all his efforts. Let's hope that this increases our chances of a dividend increase for 2020; starting in the 2nd half of this year.
Looking forward to hear the response tomorrow!