The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Hi Tony, In the case of jerk type fuel pumps used more on auxiliary engines (More so in the case of diesel electric power plant on Cruise ships) the actual fuel being pumped is also the lubricant. A new approach for cylinder liner lubrication on large slow speed engines however has to be included to mitigate the changes (lower sulphur) in the fuel.
Agreed PH As you may remember I posted on the forum some years ago that I experienced excessive wear on jerk type fuel pumps using MGO with low sulphur at 0.05% wt from an expected wear life (according to Wartsila schedule) of 40,000 running hours down to 16,000 running...... expensive wear
pcjoe Particularly like this statement, Quote from article That cost is increased with every rise in the oil price as export resources are consumed at home, End MSAR, as we know realeases valuable premium diesel for export. CEPSA owners have the influence to make it happen, I'll be more than happy for CEPSA to inject cash into QFI for a Dragons Den stake in the company
Petergar The big issue for marine is that other than CEPSA there is no infrastructure for production and without approval in the form of a successful LONO it is doubtful any progress will be made in the direction any time soon. I had intended to press Jason on the 4 stroke engine opportunities during the CC yesterday but stupidly pressed #1 instead of *1 waiting for my turn which of course never came. Personally I would like to see a buy in by CEPSA owners (farm in) to provide a much needed cash injection in exchange for a percentage of the company, and a collaboration with Wartsila to enhance their marketing of Scrubbers with the added benefit of using MSAR2 as the fuel both from a commercial and enviromental standpoint. Whilst QFI can be applauded in their attempt of walking with Giants, the realisation now is that income streams are super-critical to see us through these arduous times. Therefore perhaps we should downsize in terms of aspirations of scale, basically to try and fast track the company as a viable entity. As Rob79 mentioned on the forum an RNS one way or the other must be forthcoming next week to update our status with the refiner. For my CC conclusions, 1 CEPSA definately in the refiner mix, but I am confused if they are involved directly in KSA, just physically how that works. 2 JGC does not seem to have anything for us on the near horizon 3 I would say a 30% chance of of near term (2018) success in KSA for pilot, but that efforts one way or another will continue. 4 Little positive progress with Marine. 5 Concerned about strategic review, perhaps within 3 months, desperately hope this doesnt lead to consoldation or reverse split of shares, but would rather hope for a "farm in" to strengthen the balance sheet.
Lets hope that doesnt mean CONSOLIDATION aka Reverse Split
Playtime Agree with you that the CEPSA connection as the "fastrack" solution offered by QFI now seemingly more obvious. So really after 6 years of changing and switching the program size (120,00 barrels to 1,000,000) trial we didnt even achieve a signed contract with the major suppliers and users. Just wonder who all the other contract signatories are, ahhh perhaps the road sweeping company and maybe the coffee vending company and dont forget the onsite Canteen contractors. Bet our former CEO is saying oh *******s why did I hand the reigns over. Nearly had a heart attack my H&L account showing 9p to sell, was nearly there, then it updated to 2.5p BP you may want to throw the old faithful CB off the top of QFI Tower
Even now at this late stage MK has not given ordinary Pi's clear explanations. Seems very late in contractural terms for the Oil supplier to the designated refinery to fall out of bed with the consumer (electric company) I mean why would the refiner even consider paying for, installing plant and equipment, then commissioning the same with no contractural end agreement between THEIR SUPPLIER (oil company) and the END USER (Power station), just doesn't make sense amongst so called major companies. And ....... given that the refinery must had paid all the bills to date why then spit the dummy out and demand a sign off date, what they going to do with all the equipment.... call the local scrap merchant. Forget any inference of another refiner , it's taken 6 years to reach this point, technology will have moved on by then. Bottom line is that the commercial and environmental benefits of MSAR haven't been strong enough to bang heads together. Very sadly RIP MSAR
Ah well Noosking Happy retirement. Looks like a bus pass for me after all, bye bye Ferrari. Well that's a cool 1/4 million �++ up in smoke for me. Still the sun must be shining somewhere, still got my health or at least 70% of it 😎😂 Looks like Maersk and a Brookie got the last laugh. Decided to hold and will switch off the lights on the sinking ship, glug, glug, glug..... got that sinking feeling!!!⚓️⛵️
Noosking I have a secret weapon every time we have another delay or are approaching one and I have been through so many in the last 6++ years, I just log on to pistonheads classifieds and dream of the most expensive cars on their site, then I wake up to another delay, and think its time to apply for a bus-pass, hahaha. You would think though that given Aramco stand to save billions that there would be some serious arse kicking from the very TOP to get this deal rolling, as delays mean missed dollars..... and were talking lots of them, more so given that its already proven safe in marine and boiler use.
What no Limos, I talk of them all the time; Here you go, Ferrari 488 Corsca red with black roof, spider of course Lamborghini Huracan, red with black high gloss roof Lamborghini Aventador Roadster, red with black roof Ferrari 458 spider, sorry again red with black roof Mercedes AMG GT-R havent decided on colour yet Mercedes GLE 63S AMG red with black roof So there you have my pick, and my eyes specifically on 2 of them. But need a lot more than 700,000 shares to buy them. Which of course I have
Foxm That was the general line of thought as to whether a LONO would be required for the Wartsila Vassa V32 & Vassa V46 engines which had clocked up all these running hours on Orimulsion given that MSAR2 was specifically formulated for marine engines whereas previously Orimulsion had been used in land based power plants. Im sure that discussions will be going on behind the scenes..... lets hope so
Foxm Most cruise liners as well as many other marine installations particually offshore variations are diesel electric which in essence offer more flexibility. They are powered by multi engined (4 or more) 4 stroke medium speed engines which drive alternators feeding main switchboards. Large versions are often 6.3 KVA These switchboards provide the power to main propulsion motors driving azimuthing propulsion units. Whereas large container vessels generally use the large bone crusher 2 stroke engines which Maersk operate. Orimulsion has clocked up some 150,000 hours on medium speed 4 stroke engines in particular Wartsilas
Crest Normally don't get involved in SP or MC crystal balls (we have a well accomplished specialist for that on this BB), however to brighten up a wet bleak Monday morning, the elusive pilot contract with a "flesh on the bones RNS" could easily see a MCap of �430m (back the heady days of 2013) however any company remotely interested in a potential buyout would probably want to see some commerciality in the offering and then there's marine to finalise.
JohnG One of the problems (which will return in the future to bite the shipping industry on the ass) is the lack of bundling the whole emissions problems and to address this in a concerted manner, not just SOx and NOx. If that means extending the date to capture and solve all the problems with emissions to environmentally accepted standards then so be it.. Shipping companies will be unable to accept further new regulations beyond 2020 to include further restraints which possibly will put them out of business. Remember the viable model for shipping and any other mode of transportation has to be such that the supplier is able to make a profit and the customer is able to afford the product. The links which PH has provided are valuable information even is sometimes one seems bias in one direction to the other, (much like Maersk whom on the one hand commissioned QFI to produce a marine version of MSAR, only to stall at the final hurdle, then just to twist the knife, they champion the complete banning of HFO onboard ships) I wonder why? I have never sailed with scrubbers, but they have been around for years onshore, but as I have stated many times before, on my last vessel we bunkered MGO with sulphur levels much lower than required for the new 2020 regs but still black soot on the upper deck was very evident much to the displeasure of the Chief Mate and deck crew. I will stand corrected, but I am not aware of any technical reports post Maersk LONO (albeit incompleted) that confirmed 100% complete carbon burn out or any of the other technical attribute of MSAR2 which for us all is somewhat of a let down, but I guess to be expected from Maersk
Ramblingsid There are a good many pre-commissioning checks prior to start up. These will include formal checks to identify that equipment tags meet all drawing specs, line walks etc. etc. Only when all these have been checked stage by stage will the plant be handed over to the commissioning team, more often than not by a 3rd party, although QFI indicated they did the commissioning themselves. As with any new equipment there will be strict procedures to bring the plant up to full and sustained production, after which it should be handed over to the production team, which for the pilot testing will probably be QFI itself
C'mon Lower, Lower, Im waiting and ready
Noosking Not sure if confidence is the right word, more like, Hope, prayers, crossed fingers, crossed legs, aspirations, voodoo bones, all come to mind. Been 6 years for me, in before Aramco was in the frame, so a long time. So many PI's come and gone, think I'lI be going down with the ship, just hope its got a bloody tall mast. Tired of looking in the Lambo window and being chased off the forecourt Hahaha Chin up
Morning Noosking Eternity is an understatement, that's for sure. I have been wondering for a while given we were informed that installation is more or less complete ( re-December) as to why contracts were not actually signed pre installation. I am assuming QFI were actually involved with the FEED and procurement of equipment even if only in a handling role? You would think that there would be at least 7 stages to end to end of the contract being; FEED > Procurement > Insallation / commissioning > Production > Storage > Transportation > Combustion, so you would think that we are now at the mid point? I mean if you dry dock a ship on a controlled inspection basis, work scopes are drawn up by the vessel and office, agreed upon, contracting shipyards bid upon them and contract yard is awarded and CONTRACTS ARE SIGNED, you definitely don't wait until the dry dock gates open before signing contracts.
Morning All As Rob will know there has been suggestions over on the forum, that the signing of contracts could be related to the Aramco IPO in that Aramco are signing contracts on a drip feed basis to bolster up the opening price of their 5% equity release to their domestic and overseas market.s. Who knows, certainly not me, but we do know that production is ready to roll whenever contracts are inked, and that in itself is substantial. Whilst the costs of the FEED, plant, equipment and all associated costs may be just cents and dimes to Aramco they are prudent enough not waste millions of dollars on a project that they do not intend to bring value to KSA. In the meantime whilst waiting for some wet ink ( and a nice photo shoot) in KSA, I'm hoping that JGC are pulling strings in Japan and South American countries within Q1. We did a lot of negotiations with Pemex back in 2012/13 until their fall from grace however they are re-emerging as an entity with some huge oilfield discoveries announced recently both on and offshore, so who knows perhaps a foot in the door there? First things first though, wet ink on a Saudi parchment will turn the lock a full 360 and open the door for others, Singapore next. Here's hoping February is going to be a great month for QFI and UKOG😎
Hi Richard, Hope you are keeping well. I'm afraid the waterfront home in Florida (or anywhere bloody warmer than here☃️😎) and the 65 foot power boat moored at the bottom of the garden is still just a dream...... but I do enjoy dreaming. Are you still a member of the forum? There has been some really good posts of late and some number crunching all appertaining to KSA that make your eyes water and truly surpass anything Marine. Thinking that Japan could follow shortly with some power projects (via JGC) as Japan was a former Orimulsion user, so logically MSAR would be almost ready made.