Member Info for Del44

It would appear that the family is beginning to make waves over there... This from Forbes about the Chiu family...of particular interest to us at FTO is about 3/4 way down a nice little mention about Danny boy...:-) http://www.forbes.com/sites/forbesasia/2012/08/29/developer-david-chiu-builds-for-value-minded-chinese/ (The Chiu clan’s saga is a complex and varied one. Deacon’s business life in Hong Kong was bumpy, if notable. After David’s mother died in a plane crash when he was 9, his father remarried but not to everyone’s liking, prompting a split-up of assets. Eldest brother Richard now lives in Paris, where he has his own Warwick International hotel chain. Dennis lives in Singapore and is also a developer. A fourth brother, Daniel, is in energy and made news this year as his company fought alongside China Gas to stave off a hostile bid by Sinopec).

Part of the reason we are invested here is the hope that pollution policy will allow for cleaner burning fuels to be developed......but thing are still getting worse over there........ The American Chamber of Commerce published the results of its annual ‘China Business Climate’ survey earlier in March. One question asked ‘Have you or your organisation experienced any difficulties in recruiting or retaining senior executives to work in China because of air quality issues?’ Responses from the organisation’s 365 members underline a trend, 48% replied yes in 2014 versus 34% in 2013 and 19% in 2008. http://www.bbc.com/capital/story/20140321-expat-exodus-from-beijing

No divi has been announced yet as the results are been awaited. Dive is based on operational profits after tax has been paid. Current policy is to pay out 20% of above figure...this equated to 0.016p for year ending 2012..(0.018p year ending 2011) There may very well be another fall in profits this time (even with 15 months) as we have no operational contribution from FGIH, which we sold and from Maoming Single Point Mooring which was discontinued business during new contract agreement talks.. § Natural gas business operating profit increased 51% to £15.8 million in 2012.. (2011: £10.5 million). § Maoming Single Point Mooring facility's revenues were maintained at £17.3 million in 2012 (2011: £17.2 million). So, based on continued business's in the Group, we may see a fall in profits, which COULD result in a lower dividend, or none at all.... We should know soon enough however...:-) I wrote this on the 20th of July about a week before the annual results. I suspected the divi policy change coming, but not the collapse in the sp to the current level Daniel Chieu really needs to decide what he wants with TO DO WITH FTO NOW. The company has been badly advised/managed in this last year. I suspect the original investment in CGH, was never for the reason we are in them now. Events took over quickly and before to long we were forming JVs with the then house arrested Minghiu. Remember our original investment was made before any bid came in from Sinopec. So one can only imagine, the decision was made for a small stake in a distressed company. Now we are inextricable linked to CGH and have lost our Premium listing and independence along the way, as well as our dividend policy. I am not in the optimistic camp that believe we will get an interim dividend. I have no idea what will happen to FTO, other then that the sp is continuing to fall and has found no support yet.. Daniel Chieu, as the owner of FTO has to take full responsibility for the dissatisfaction shown to both him (he did not personally speak at the agm, I believe) and the board. But contrary to other investor's view, I don't think he will lose to many sleepless nights over the sp performance of FTO as he is aware of it's true value.... So, I would say we are quite clearly directionless at the minute....cause I am not sure they really have any kind of plan. Not to be able to give the market any guidance is a clear indication of FTO been a bit rudderless at the moment. What company plans like that? Good luck all.....think we need a very big dollop of it right now.....

By paying out the 2.32p special dividend, the company could not pay an annual dividend cause of some accountancy/company rule that prevents a dividend been paid out purely on bank borrowings. It needs to be on cash generated or some thing or other. So a lower special dividend would have been the better option and at the same time retain the small annual dividend. It wasn't much but it clearly mattered when you view the devastation in the sp since tha annual results just over a month ago. It (SP) has had no support since. The dividend was a form of value to the share. But we shall see how the transition goes over the next few months...

I am comfortable with a good dollop of frustration as well. Daniel Chieu made a bad business decision both with the special dividend and with the dropping of the annual dividend. As a consequence of those poor business decisions, we have a sp that is now stuck almost 33% lower with no yield. It is now undervalued and unloved...:-) But its market position hasn't changed...still very much exposed to a huge gas market through its holding in a growth stock company in China Gas Holdings, which will be growing even in a slowing Chinese market, due to the Government energy policy and anti-pollution drive......

Your welcome...we are all in this together at the moment.. Again thanks to alanadale...

I have taken this summary from another board. It is written by a very good poster and I hope he doesn't mind. Thanks alanadale..... I’ll fill you in on my gleanings and observations. First, the bad news: there was nothing materially new to report and no profit projections. The company is still in a state of transition…. But Daniel Chiu showed up and participated. That was a big deal. I believe he is playing fair according to his book. However, it is a moot point how far he will modify that book in the light of the views expressed at the meeting. He did take on board my point that the special dividend had been incompetently handled. But we are where we are. More encouraging was what Frank Attwood and Bill Mok had to say. 1/EPS The 3p EPS is not a precise figure as it was a snapshot taken during a period of transition but on a swings and roundabouts basis it is in this ballpark. The significance of this with a disbursement rate of well over 20% is a dividend upwards of 0.6p a year (over three times the 2012 dividend). 2/ Dividends CGH is due to pay a final dividend in the next month. The company is committed to a 22-23% profit distribution which will rise over time to 30%. Mok says this will be overshadowed by profit growth however, though he was loath to actually quantify the rate of growth. Currently CGH accounts for around 60% of profits and he expects that percentage to grow which is encouraging indeed. BlueSky by contrast pays its dividend in July but disburses practically all its earnings. 3/ Company structure The company is for the time being an investment company with four income streams in businesses Fortune influences but doesn’t control and in addition owns a small oil trading business. However, it might not remain an investment company if it acquires new businesses. Atwood said the interim report won’t take us much further forward on earnings and structure but the picture should become clearer in the next ten months or so. Then the board will be in a position to tighten up and slim down the management structure and get a handle on costs. 4/ Armenia. The company has taken a £41m hit on Armenia and is concerned to ensure licenses don’t lapse so that there is something to sell on. Ore prices have fallen from $140 a ton to $90 since the project was first developed. My overall impressions. They genuinely seemed to listen and were not evasive. I think it’s a culture clash. But will they come out of the bunker? I’m going to propose to Frank Attwood the board pay an interim dividend as a sign of good faith – he said they had the money for the final they passed anyway – to boost the share price. Actions speak louder than words.

I have very recently been quoted 8.94p to buy and 8.91p to sell... So the spread has narrowed substantially today...

No reason to move up either before or on the day.... The AGM will be a formality for the board. They may get some incisive questions from fellow shareholders but wouldn't expect too much from them. As for clarity on our position as an investment company...unless Daniel Chieu is there to answer questions, I doubt if the board will have the answers to those questions. Regarding the dividend in the future, not sure we will be enlightened by the AGM somehow.... But should anybody go...would appreciate any feed back as to your views... Thanks...and good luck...

Young voters will go "YES"....older voters will go "NO" Next question...what are the demographics of Scotland?...LOL.

http://interfaxenergy.com/gasdaily/article/13276/chinese-gas-distributors-stumble-ahead-of-price-increase and http://finance.yahoo.com/news/value-partners-top-5-second-032131894.html

http://docs.noodls.com/viewDoc.asp?filename=79508/EXT/82A711F8969C17182E2A13140C764F134A9ED4C6_ED76872CF42FBFC06E264591A04C924D76551267.PDF

We will break a new high soon enough.

Really can't blame them shatter. This 30% fall lays filmy at the door of Daniel Chieu. Any investor can input his buying and selling price on to the L2 book. This has fallen 30% from annual results without any bounce. More or less straight down. It has no dividend for income to comfort many investors at these levels.. There are no buyers for what ever reason and those that are, are only very small pi's... No...mm's are not to blame...this lies with Daniel Chieu, pure and simple...... Think about it for a moment.....Last January you could buy FTO shares for around 9p...WITH a yield of about 2.5%. A nice little earner. Today, 8 months on and with a headline profit up from £14 million to £192 million and we have no dividend and worse of all, no direction. GLA...

Probably expecting more uncertainty with regard to FTO's direction.... But with ours and BEG's current buying of more shares in CGH and with the recent departure of the last failed bidder for CGH, namely Sinopec now out of the picture, its beginning to look like a new bid could be on the cards for CGH. Only this time, it is more plausible that a bid could succeed... Both BEG/FTO will be starting with approximately 46% of the target already under control. Going for just a majority bid, then any bid need only acquire about 4.5% more shares in CGH to gain board control. Any bid premium above the last buying price (HK$14.80) would most likely succeed and not alter the gearing of either company presently. Depending on the make up of any Joint Venture agreement between BEG and FTO, would depend on BEG's view of the Government's view on this matter. The failed bid between ENN/Sinopec was based on a 55%/45%, with ENN (The private company) taking the majority stake..The Chinese Government would like to see more foreign investment in the sector against more SOE. It is policy. The CGH listing would be retained on Hong Kong market, with 49.9% of shares still freely tradable. Its looking more probable each day...in my view...:-)

The annual dividend is HK12.06¢, or just under a penny a share, Which equates to a £1.7m payment to Fortune Oil on its directly owned interests, and a further £6.7m to the joint venture CGG. This means that Fortune is raking in £5m of dividends from its investment in China Gas Holdings.

Sinopec Corp. Sells 210mn Shares in China Gas August 15, 2014 SHANGHAI, August 15, SinoCast -- Sinopec Corporation announces that it sells 210 million shares in China Gas at a discount of 5.1% per share. Four shareholders of China Gas bought the shares, which include Beijing Enterprises Holdings, executive chairman Liu Minghui, executive director Huang Yong and Fortune Oil. The 210 million shares represent 4.18% of equities in China Gas; Sinopec Corporation cashes in CNY 3.11 billion. Sinopec and ENN Energy issued a takeover offer to China Gas at 2011 end, but the offer was declined by China Gas. Thereafter, Sinopec alone sought cooperation with China Gas, and the two signed a cooperation framework in October 2012; China Gas launched cooperation in gas filling and LNG and allowed Sinopec to buy its new shares. http://www.hispanicbusiness.com/2014/8/15/sinopec_corp_sells_210mn_shares_in.htm

According to market sources, SINOPEC CORP (00386.HK) -0.020 (-0.259%) Short selling $10.26M; Ratio 5.644% had disposed its shareholdings in CHINA GAS HOLD (00384.HK) -0.440 (-2.821%) Short selling $8.75M; Ratio 0.267% at a disposal price of $14.66-$15 per share, marking a 3.9%-6% discount to the latest closing price ($15.6). Share price of CHINA GAS HOLD last stood at $15.18, down 2.7%. Trading volume surged to 217 million shares. (Quote is delayed for at least 15 mins.Short Selling Data as at 2014-08-14 12:25.) http://www.aastocks.com/en/stocks/news/aafn-news/NOW.621298/1 I wonder who bought...?

Have a look here... http://www.lse.co.uk/DirectorsDeals.asp?shareprice=FTO&share=fortune_oil Any recent buying was through the drips dividend programme. None of the current crop of directors other then Frank Attwood, have bought any shares. Mainly cause they get them through the company option scheme.....they really don't have to pay for them. So most are in for a free ride. It would be nice to see some buying, even if just so show support for a truly undervalued stock...:-) I am hopeful that yesterday may have been the capitulation day, as there was some serious selling all day long. The sp went down on very very thin volume and then yesterday!!!! We live and hope. The IMS should be due this week and we can only hope that they may have something good to report......

Tian Miao, an energy analyst at research firm NSBO, said in a note that PetroChina Co., the country's largest gas supplier, will be the largest beneficiary of the price increase because it controls most of the pipelines and wholesale distribution in China. The increases should eventually trickle down to benefit gas distributors such as Kunlun Energy Co., ENN Energy Holdings Ltd. and China Gas Holdings Ltd., she said. Full article here.... http://www.4-traders.com/CHINA-GAS-HOLDINGS-LTD-6165856/news/China-to-Raise-Nonresidential-Natural-Gas-Prices-Update-18885493/