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Just to flag, in terms of work at H&W to date, the workload at H&W was 72% for end of 2019 and 119% in January hence the additional contractors I referenced in my AGM notes. There was no indication this wasn’t to continue.
I’m pleased other investors have found my notes of value.
MrTriumph, both the Chairman and new NED were present and introduced themselves. I have to say, I felt quite inferior when they were talking through their career and achievements - we are in good hands. They will have completed due diligence and scrutinised the business, particularly Clive, before taking the reigns.
Have a good weekend all.
If ML and FID are not sorted by June, that’s when I will worry. Enough chances will have been given at that point.
Setanta, I would say medium is 12-18 months and long term up to 5 years.
The equity deal is still on the table, the BoD want to pursue retaining 100% of the equity for IM and feel a few months (with equity secured) is a sound decision. Time well tell if it is!
FSRU
The potential project is being lined up to commence FEED after the IME project is in construction, it is essential to have a pipeline of new projects being evaluated ast they take some time to evaluate.
Due diligence will be completed mid March, along with negotiations with project owners and interested utilisation (3) partners.
Gate review will be completed by the end of March to proceed to the next stage or withdraw from the process.
Onshore elements have planning permission, offshore permits “obtained in principal’ and the environmental surveys have lapsed.
H&W
Strategy is to develop a multi-faceted business rather than just relying on defence contracts - one of the main reasons why H&W went into liquidation
Lots of work in the pipeline across multiple areas including; ship repairs (bread and butter), defence projects (type 26 program - 8 vessels, type 31 program - 5 vessels and type FSS program - 3 vessels - potential partnership with Nevantia) steel fabrication (potential wind farm project with Nevantia) and decommissioning.
H&W asset debt due to be announced soon. JW was hoping to confirm before the AGM, very close. JW was very relaxed on this.
H&W invest NI funds available over the next few months.
Riverfort convertibles cleared - necessary, although the terms were not ideal - they negotiated on the purchase price at the end, which helped the overall terms.
Riverfort short-term debt due on 14th February - this will be restructured and announced in due course.
Final payment for H&W acquisition costs due at the end of April - work is ongoing and noted as ‘green’ - happy with how it’s proceeding.
Potential annual revenues at full capacity (fully utilised) - £400-£500m - too early to predict where H&W will be in the short-term.
Happy with the current cash position and no immediate concerns - streamlined the costs early on to maximise efficiencies.
IM Energy
Confirmed DAERA has no issue with the science submitted to convert the marine licence (ML).
ML consultation ends on the 7th February. Typical, there will be a 4 week window for any objections or support. Infa will then be able to respond before DAERA make a recommendation. The energy minister, now Stormont is up and running, will make the final decision.
Equity funding offers still on the table. Any government funding will become clear once Brexit had happened. Priority is government funding and worth waiting if we can retain 100% of the project. If things are not clearer by May (at the latest), they will activate the other options. Mixture of central and local government funding will be explored.
Fantastic support from the local community - 77% in favour 23% against at the consultation meetings. This is not an official poll and was carried out by Infa representative on all attendees.
Funding decision will be made either way by H1.
EU grant refund is imminent. In a recent discussion with the EU, they confirmed the refund will be paid over the next few days/weeks. It will be confirmed on the EU website before officially being confirmed to Infa.
If Infa proceed with the equity offer, the BoD are still very confident of retaining the c£15m in back costs.
Vitol are happy with the situation and they delay. This was always the priory before any decision to delay FID was made.
Infa AGM
Started with a few words of condolence for Snowman - nice touch!
Focus is on long-term projects - infrastructure and assesst management
Income generation from; Project development, Construction Management, Facility Operation and Retained Equity
Shareholder value is important - focus is on medium to long-term - was quite deliberate with this point (despite the recent dilution) and referenced H&W revenues to help support that.
Share holdings split by 54.58% retail and 45.42% institutions - all institutions visited the H&W facilities last week - confident in them retaining these shares
Noted the passion, commitment and expertise of the H&W workers - Julian Smith has been very supportive and attended a function following the re-opening of the dock.
All resolutions passed - only biscuits and coffee!
I will post my notes over the weekend. Nothing new as you’d expect, but I’ve come away assured that we are in good hands.
I am attending and will share my notes over the weekend.
Dana, when do you expect a significant increase in the SP? This is obviously dependent on the PC coming out favourable and FID completed, along with any H&W contracts announced. Q3/4?
Is it too much of a coincidence the outstanding Riverfort loan was £250k? Hopefully they are out and we can start the steady move up.
Nice find Spud!
https://twitter.com/spudtheplumber/status/1207719363970830337?s=21
We are clearly in a strong position regarding the ML. The following sentence jumped out “a full set of current and up-to-date documents have now been provided to and been ADOPTED by DAERA.” I don’t think they would have been adopted if DAERA didn’t support the evidence which I am sure will meet (and probably exceed) legal limits as defined in the draft license.
Amazing news, clearly DAERA are happy to proceed. Game changer!
Sorry! Not seen all the posts on my feed.
This is is also interesting: https://www.baesystems.com/en/article/australian-facility-upgrade-to-support-oil-and-gas-market-expansion
“If the exit poll is correct, this is a game changer on various fronts it’s going to be a long night!” his account is now open as well.
I wasn’t there. There will need to be at least one TR1 though.
The £6m placing went to 6 IIs according to investors who attended the meeting.