MaryBr190 - Fair points
Execs moving to US hinted here - https://news.sky.com/story/oil-engineer-wood-group-to-cut-hundreds-of-jobs-13098692
With regards DT - google it. he repeats it now and then, probably for votes
IF articles in the press are to be believed execs are relocating to the US.
With a high probability of DT becoming next US pressident will he stick to his words of Drill Baby Drill?
If so that may be pay day for WG and shareholders.
A long wait and could be some downside before then, but maybe worth it in the end.
Considering the monies involved are disputed, there are likely to be inflated claims on both sides.
The main issue is the mine is not being worked, regardless of the company being able to pay an inflated claim.
The more this escalates the less likely production will restart any time soon.
Thats all draining on HUM, and not the increased cash flows in the first quarter expectations.
Despite the perceived negativity at the moment, economies are doing better than thought.
Any news suggesting this remains the case gives a positive forward looking outlook.
With the latest SYNT results showing the company has stabalised financially, good economic news should provide a driver for producing companies with the right products.
Hopefully that is SYNT and there will be further rises to come.
This could easily be a rerun of the RR share price performance.
Hold for the medium term in my opinion.
Selling physical assets to free up cash, used to reduce debt and size of equity.
Reducing dividend to reflect future free cash flow.
Focusing in value add growth markets rather than building a physical asset empire seems reasonable to me.
I hope the growth materialises.
The price fall from the beginning of 2024 semed to be due to lack of confidence regarding the large debt position and uncertainty of funding due to current business levels.
Todays results suggest the business as a whole has stabalised and producing increasing free cash flow, bringing debt down and seeing modest order increases, with the backing of lenders and the government export finance scheme.
With todays increase back up to the previous 'base' price around 185p it seems confidence in self funding has returned.
As such it seems this is now a waiting game to see meaningfull order increases. With the uncertainty of a global big election year and its impact there could be a volatile road ahead. Assuming no black swans, new leaders will want to pump their economies with economic activity, regardless of inflation effects. Hopefully Synthomer products will be needed in that pump, although maybe towards the end of the year and into next.
Patience may be needed, but top up opportunities through this year could be profitable into next.
Apparently Norway O&G tax is higher than UK.
If so, they must be profitable enough to make it worth while.
Is the UK issue a lack of consistancy and a changing financial landscape?
At least the tax hasn't been increased in the budget, only extended for now, which could change.
And there was a comment about changing the tax as O&G prices 'normalise'.
If SQZ cost is $20 / boe they 'just' need to remain efficient and use other tax incentives wisely.
With other NS assets coming up for sale they could increase expand further.
With a divi so large and apparently managable whats not to like? As long as its not cut.
Croda announces results on 27th february.
Which should give an indication of the overall chemicals industry, with some read across to Synthomer.
Fingers crossed for positive news, and overall increased economic activity.
Its worth noting that car loans are vulnerable to distress risk from a weak economy.
The US is already seeing a rise in defaults, although I appreciate CBG do not operate there, but the first thing to be given up in a more serious recession will be flashy cars. With inflation remaining higher, will interest rates fall and will consumers carry on spending like the last 20 years?
Like the company says the risk from the insurance issue is unknowable.
With MArtin Lewis on the case encouraging complaints the uncertainty will last a while.
The share price will react on a whim.
Its already down 50% since january.
The low could be a long way away.
Surely it will need backing from the big boys:
https://www.endeavourmining.com/investors/institutional-ownership
if thats still up to date.
The US dollar is getting stronger, perhaps because interest rates wont come down as quickly as come people had been saying, which in theory is bad for commodities.
Until the next FED meeting on interest rates I can see this EDV slipping back especially with all the negative comments. Institutional holders will keep taking the divi's which may pick up with increased production later in the year.
How low they go on volatility in the mean time is anyones guess.