Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
It's been on roughly 23rd for the last 5 years, check rns history
Exciting times
Looks like GS is bullish on LNG
https://oilprice.com/Energy/Energy-General/Goldman-Sachs-Warns-Of-Bullish-Perfect-Storm-For-Natural-Gas.html
The reason why this tanked is the old CEO didn't do anything to protect itself from a crash in commodity prices, thus continuing to overlook efficiency, not competing with smaller brands like Ovo or octopus, and paying dividends when we shouldn't have.
Irony is oshea has done all of these things in a short time, what was unexpected is the rise in gas prices due to supply shrinkage. The current price of gas is the sake as 2014, where the company had a £3 share price.
The Achilles heel was our oil and gas exploration business (spirit energy), funnily that's our strength now as we can extract at low prices and sell at huge profit domestically.
The people who bought at £2+ will also probably be saying 50p! Really!
I say £2 because if you compare BG peers, you get sector level pricing. Then you ask yourself what reasons are enough for BG to be written down by £1.50. What you will find is the only reason was the price of gas tanking. What people don't understand is Gas prices are regionally priced similar to oil (Brent, wti etc). UK GAS has risen 600% from its lows, Europe and Asia even higher. Intact there's no LNG cargo arriving in the uk for weeks as they have been diverted. Infact there is a national grid warning out
https://lngjournal.com/index.php/latest-news-mainmenu-47/item/101988-uk-natural-gas-prices-hit-winter-record-as-coal-power-makes-up-deficit-as-lng-drawn-to-north-asia
1. UK NB Gas prices have risen 600% due to cold front in Asia driving prices up
https://www.reuters.com/quote/NGLNMc1
2.Writedown reversal. Centrica applied a write down of gas assets for $1.4bn When gas prices crashed to £20. They now sit at £60+
https://www.bloomberg.com/news/articles/2020-02-13/centrica-profit-dives-gas-glut-forces-1-billion-pound-charge
3. Cash Sell. DIRECT ENERGY $3.6bn
4. Natural reduction in Pension deficit. The market has risen to a new high where BG pensions have a 35%+ equity exposure
5. Evolve Brand. Low cost tariffs to compete with fintech suppliers
6. A significant overhaul of operational costs including redefining hr contracts
These are all reasons why this stock is easily inline with its peers and worth £2
1. UK NB Gas prices have risen 600% due to cold front in Asia driving prices up
https://www.reuters.com/quote/NGLNMc1
2.Writedown reversal. Centrica applied a write down of gas assets for $1.4bn When gas prices crashed to £20. They now sit at £60+
3. Cash Sell. DIRECT ENERGY $3.6bn
4. Natural reduction in Pension deficit. The market has risen to a new high where BG pensions have a 35%+ equity exposure
5. Evolve Brand. Low cost tariffs to compete with fintech suppliers
6. A significant overhaul of operational costs including redefining hr contracts
These are all reasons why this stock is easily inline with its peers and worth £2
https://www.bloomberg.com/news/articles/2020-02-13/centrica-profit-dives-gas-glut-forces-1-billion-pound-charge
Remember this when gas prices tumbled from 40 to 10.
Well UK gas is at 60.69 now
https://www.centrica.com/media/4462/centrica-proposed-sale-of-direct-energy.pdf
Roughly £440m in cash to pension with letter of credit for £745m.
The remainder can go wherever!
Aspers is the most active uninvested person here.
One should know directors involved or privy to non public information cannot deal the stock as it would be insider trading.
This will ride up to £1 easily as liability is supported. It doesn't need to plug the pension hole as that's well managed. If it wasn't then we would be talking here would we. Am sure the directors know new asset purchase will make that money work better. Congrats all for picking this up so cheap, don't get these opportunities often.