The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
"He should be paying us!"
If only there was some way of clawing back undeserved bonuses like the infamous £310k Sanderson was awarded.
Years of company losses; £12m each year raised in loans and placing's and a share price decimated as a result; yet somehow Sanderson deserved a giant bonus.
Talk about undeserved milking of investors.
The 'unacceptable face of capitalism' The older contributors will recall that phrase.
This debate about pay and what UKOG stated would happen to directors pay prompted me to look back to;
28.4 20 RNS
Extract;
"At a corporate level, the Company has also instigated a number of wide ranging cost savings, many of which were underway before the pandemic struck. These include a significant cut of 20-50% to Directors' remuneration together with a reduction in non-core and non-essential asset related activities."
https://uk.advfn.com/stock-market/london/uk-oil-gas-UKOG/share-news/UK-Oil-Gas-PLC-Operating-Cost-Reductions-GBP1/82319584
'cut of 20-50%' ummmm.... a bit of a way to go Stephen.....
Never mind ocelot ; we all make mistakes; Gross and net are a bit different.
I just noticed a mistake of my own;!
My bad ; Sanderson's GROSS basic Salary in 2019 was £314 not £315 ( I added £1k pension payment)
His 2020 basic GROSS was £297 with the same added £1k pension payment it would be £298k
So £314 drop to £297 I make a circa 9.45% cut in salary. That's a lot less than UKOG previously indicated, I am sure
Good evening ocelot
You wrote;
"Because the RNS speaks of a percentage of the net salary, the directors' commitment is larger than it may first appear."
How do you work that out?. Sanderson's gross basic salary in 2019 was £315k. In 2020 it dropped to £297K. I thought salaries were supposed to drop at least 20% or have I remembered wrong?.
Anyway; Sanderson's NET salary is that which he would receive after TAX and NHI. He will be paying 5% of a much smaller number than £297K ; the bulk of his earnings ( over £37,701) will be taxed at 40%; the over £150k at 45%.
I will let you do the sums.
Good evening HeadInTheSand
You would have thought Sanderson and co. had TODAY bought on the open market looking at some reactions;
However;
"the first DDSPP purchase is expected to occur on Friday July 2(nd) , 2021"
Sanderson is not stupid; not going to be buying until after the resolutions and what follows...
TH2 wrote
"That puts that trolling complaint to bed and shows their level of confidence in the company."
In my opinion its share holder activism that has them running scared.
They could have had such a share purchase plane in place years ago. The reason they are creating such a scheme now is obvious; its not confidence in the company; its lack of confidence they can hold on to their jobs; its fear of share holder activism.
I suppose there is just so much you can shave off costs .
The really tricky question is how will the project be financed as our government has signalled the withdrawal of support for fossil fuel projects and where does it leave the partnership with Navitas?
Good morning Ovets
The title of this thread is the latest number from RKH themselves; see my earlier post;
"I note this line in our results;
"Rockhopper's Board remain confident the Sea Lion project benefits from robust economics (at $65/bbl Brent - NPV10@FID $1.8bn; break-even $42/bbl" "
Good morning to Godders99 too
Have to say I became very much of the opinion that Sea lions prospects died with POO's collapse and that our only hope was the arbitration.
Since the big recovery in POO I am slightly more hopeful, but, make mistake RKH remains high risk, imo.
RKH has some toxic assets with large decommissioning liabilities and our immediate fortunes are dependant on receiving a significant OM award; actual cash in the bank in a timely manner.
If the right tax deal can be negotiated SL COULD be a goer.
The Johnson gas discovery was made by Shell in 1998. The size is not big enough to justify a HUGELY expensive floating LPG vessel. The costs would dwarf Sealion's.
I think we have enough, easier to exploit , oil resources on our plate to worry about.
We have to be so careful counting on the public utterances of any oil company director ( think UKOG!)
Here is PMO's Robin Rose in January 2018;;
www.investorschronicle.co.uk/shares/2018/01/30/the-extraction-podcast-premier-oil/? (from 10 min 50sec)
On SEALION "aim to get FID by year end"
What a waste of time PMO were.
Good evening Bloobird
$80 would be great. The question is; what will POO be like in FOUR years. Harbour have to have confidence that SL will be worth the risk.
We just have to look back a year or so to the horror story that POO then was.
There has been a fair bit of volatility. Go back to 2018 and POO averaged $71 for the year .
In January 2018 PMO stated they expected sanction later that year. Doh!
One thing is for sure; Linda Cook has not exactly bigged up our chances with her public utterances. lol
The FIG are not in a position to play hardball. The fossil fuel age has limited time left. There will be a demand for a quantity of petrochemicals but once transport switches to electric the demand for oil will collapse to a fraction of the current demand.
SL is hugely expensive and only a big player could afford to develop. Unfortunately for the FIG ; the big boys are either selling off producing assets for a song or shelving already drill ready developments on their books.
They are left with Harbour as their only realistic chance of seeing any oil development in the FI's
Its a buyers market and Linda Cook has stated SL has to compete with other opportunities they see.
Harbour took over PMO for a couple of reasons; the listing and PMO's giant NS tax losses.
The FIG has to compete with the NS where Harbour have focussed their business.
The FIG has to move on taxes or possibly lose all chance of revenues.
A tax holiday or $5 off the royalty would make SL competitive imo.
The FIG must by now realize that Harbour are their best chance of seeing oil revenues. Its last chance saloon time; the FIG must give up a quarter of the pie or risk no pie at all.
I just do not see any other player wanting to risk $1.8 Billion.
We are a long way from any sanction. To stand any chance we need the FIG to 'get real' and recognise that ANY FI's oil development is in peril.
If they remain intransigent on tax breaks ; as they were in 2017; I see the end of the dream.
If; the big IF we get to sanction; I note this paragraph from our annual results;
"A decision was made, in line with the operator, to write off historic exploration costs associated with the resources which will not be developed as part of the Sea Lion Phase 1 project. This impairment has no impact on the Group's long-term strategy for multiple phases of development in the North Falkland Basin but instead reflects the limited capital which will be invested outside of the Phase 1 project in the near-term. A reversal of the impairment is expected once the Phase 1 project has been sanctioned and investment resumes on the Phase 2 project."
ummm That would be a dream scenario; phase 1 sanctioned and phase 2 realistically back as possibility.
The only logical conclusion as to raising the authority to issue shares is that either UKOG expect a very much lower share price or they see a need for even more cash; maybe a bit of both.
The good news is this will not be the last chance to buy golden tickets in fundraises; UKOG spell it out ;
"Should the open offer be successful on a cost benefit basis the Company will make available to the Shareholders an opportunity to participate in all future fundraisings.."
https://www.ukogplc.com/ul/UKOG%20GM%20Notice%20210521.pdf
No if's, but's or maybe's ;there will be further cash calls
Good evening ocelot.
True; we could argue all day BUT there are clues as to the direction of travel
1 The rejected resolution 6 was for 3 billion shares
2 The new resolutions have a much much higher limit
3 Its not just Turkey that has to be funded. The GM notice clearly stated "amongst other things" that needed cash too; like works to cover the injector works at HH etc.
If the resolutions are not passed and the cash raised; Turkey and HH operations will in "the near future "run out of working capital and grind to a halt
As for Sanderson Videos ; this is THE one really brings home the BS and shattered dreams. Four years later after reassuring that UKOG definitely had enough money the begging bowl is out again.
https://youtu.be/V1_stpqkU7w
TH2 wrote;
" they are still producing five years later and plan to continue and indeed increase over the next 20 years!"
The only present decent , so far profitable producer, is Horndean. THIRTEEN barrels there does not amount to much though.
With the 20 year reference TH2 is referring to HH only.
Its not true that PRESENT production will increase over the 20 years production life of HH.
UKOG had to dramatically impair the value of HH after an independently reviewed depletion curve. Production will fall away; pretty dramatically and be very low in the latter years of the 20 year production.
Also remember that the estimated PORTLAND recoverable is 600,000 barrels. The Kimmeridge 1C to UKOG was published as 300,000 barrels. Very small numbers.
TH" wrote; "Horse Hill PRODUCTION continuing with current setup creating revenue.."
Its oil flowing profitably that counts. The accounts showed that the interventions and expensive waste water disposal costs; meant they LOST money last year on the production.
UKOG are now throwing money into converting what WAS supposed to be a producing well into an injector. We will have to wait and see how that will impact the production and income.