Trendz, in my view it is low gas price (which is not a news, at least since 10 years ago). Another player is a recent announcement of a potential acquisition. Investors want to see the terms of the deal, that is if it will ever happen. If we secure a good deal expect 30% increase overnight
Thanks for your view Swindon41. What I had in mind is that, once the share buy back scheme comes to completion, cash could be used for more acquisition or to reduce the long term liabilities. Which will add to the intrinsic value of the company. I am not too confident into selling and buy back at a lower price, positive news may come through soon and I wouldn't want to miss the moment. Last summer I made 50% profit after DGOC finalised an acquisitive deal. I would be happy to ride some volatility at this point in time. Besides 7% dividends are worth holding on.
RE: Total liabilities of $430m - that's a fact11 Jul 2019 09:36
Hi Nickel, I believe the current liability shouldn't be of a concern to you. Here is why: " The current element comprises US$20.2 million (2017 - US$3.8 million in non-current financial liabilities) of total drawings under the prepayment facility with BP plus amounts of US$94.8 million estimated to fall due under the net cash flow sharing arrangements over the course of 2019. Amounts identified as currently due under both the prepayment facility and the net cash flow sharing arrangements, are directly related to production volumes and sales prices actually achieved over the year". The bit " Amounts identified as currently due under both the prepayment facility and the net cash flow sharing arrangements, are directly related to production volumes and sales prices actually achieved over the year" should give assurance that whatever the current liabilities will be, it is guaranteed that Serica will be able to cover them as they are directly related to production.
RE: Current Liabilities Covered by 6x Cash11 Jul 2019 09:07
Hi NewKOTB, I just managed to have a closer look to the documents you shared. Yes liabilities are indeed clearly stated as projected based on production. By the proportion on it, the projected production is massive!
I am impressed about how DGOC can implement the buy back scheme at such a low and non volatile share price. Any thoughts about what is keeping the share price at such steady low level? I predict the share price will start moving again once the buy back program comes to completion.
RE: Current Liabilities Covered by 6x Cash09 Jul 2019 15:35
Apologies for my inexperience looking at company accounts I may need some help on this. On the HL website, looking at the financial for Serica, I can see on the income statement the revenue accounting for $45.75M and the profit after tax from continuing operations of $74.72M. I didn't know profits can be higher than revenue. Or am I missing something here? Thanks guys This is the link to what I refer to:
Thanks for your view NewKOTB. Can you please re-post the BKR transaction document you referred to? My take on liabilities (share of profits) is in line with yours as I was watching an interview to what I believe is one of the managing directors. Is it possible to include projected liabilities in the balance sheets or are these are actual figures that the company needs to meet, especially about the current liabilities?
RE: $430m in liabilities is the concern here08 Jul 2019 08:44
Hi Nickel, thanks for your comment. I had a look at the Serica's balance sheet. I can see 16M total liabilities and 18M cash. The current asset is 28M. What do you refer to by "size of liabilities", is here anything I am missing?