Member Info for droderick

I was reading with a lot of interest the analysis of the FSS programme as provided below:

https://www.savetheroyalnavy.org/fleet-solid-support-ships-for-the-royal-navy-to-be-built-in-britain/

This is effectively now a two horse race between Team UK and Team Resolute. When I look at the build and the parties involved in more detail, it occurs to me that even if Team UK were to win the tender, they just do not have a capacity to build these vessels with both Bab**** and BAE tied up to their eyeballs with the T31 and T26 programmes respectively.

My sense is that regardless of who wins the tender, there will be a substantial amount of work that will be sub-contracted to H&W, both in Belfast and Appledore. These are the only two yards that have the physical size and fabrication capability to deliver these vessels on time and on budget.

The award might come in only next year but I do firmly believe that H&W are now firmly embedded in this contract.

Being a shareholder and having followed the fortunes of this stock for a long time, I am sometimes dismayed by the credit that is given to Danawinner for allegedly turning the fortunes around of this company. Some key facts:

1. He engineered a board coup of a company of which he hadn't the faintest idea of what to do with
2. He installed himself and his coterie in June 2017 and departed in October 2018
3. His net contribution to Infa was zero, except for humiliating the previous board

What did he achieve for nearly a year and a half at the helm?

Completion of FEED - NO
Financing - NO
Marine Licence - NO
Offtake agreement - NO
Strengthening of the balance sheet with hard assets - NO
Lots of bluster and BS - YES

he effectively left Infa in a state of complete mess and disarray only for JW and the team to pick up the pieces, put them together and make some sense of this company. If Infa were under his watch today, it would have probably been non-existent.

Let us give credit where credit is due: JW for pulling the company back from the brink, JT for her sheer perseverance with DAERA and NI bureaucracy and the overall team for having the courage to come together, back JW and create something meaningful.

In the meantime, Danawinner re-assembles his coterie, who are equally unqualified, trying to poach another company, again, about which he has not the faintest clue what to do with.

We, as shareholders, probably got lucky and got away with the misadventures of Danawinner. I do feel for the shareholders of Primorus. They can pretty much kiss goodbye to any hope of a turnaround or change of fortunes with Danawinner in their camp.

If it does happen, it is a group PnL on a consolidated basis.

I think you answered your own question Tango1.

There are ways and means and JW is doing exactly that. The fact that Stena have put out a press release doesn't mean that Harland need to respond to everything. It all depends on the nature of the contract and the decision of the Nomad on its materiality for announcement purposes.

My sense is that Harland will be bidding for smaller contracts to start with to de-risk the operations and ramp up gradually.

Reading all of your posts, may I offer the following comments:

1. Remember the time JW set milestones and people ridiculed him for making RNS announcements against those milestones? It seems to be the case that damned if he does, and damned if he doesn't.

2. Civil servants are slow in the best of times and with COVID-19, we are arguably in the worst possible phase to move things along. I have no doubt JW and JT will be deploying every trick in the book but some things are beyond their control. That's life.

3. The fact that JW is trying to reach out to all of us is being taken negatively. Even is he wants to issue an RNS by way of an update, the NOMAD could very well block it if he/she deems it to be non-material

4. Regarding contracts etc. at Harland, why would JW want to publicise his contracts, the negotiations and the clientele to the whole world? We are not the only ones watching, there are competitors watching his every move so why should he give out commercially sensitive information?

5. JW already gave a lot of information in the Placing circular. The financial year has come to an end and the team must be getting the audit and annual report organised. A lot of information will be disclosed in the annual report.

What is the tearing need an urgency to get information when literally 2 weeks ago we had a Placing circular?

Let JW get on with the business, focus on value creation and we will all be fine. Patience and calm are dirty words these days but that is exactly what is required.

We don't live in interesting times. We live in bizarre times. Despite all the doom and gloom surrounding us, Infa is still here and standing. Let's give some credit where it is due.

It is very interesting that these issues are being raked up especially on matters that occurred 13 years ago. As Spud correctly pointed out, this has been fully disclosed at the time of JW's appointment.

I do believe these posters are acting disingenuously. Quite frankly, their posts should not even be dignified with a response.

Quite right BlairPeach,

The bulk of the placing is at the GM.

Dawski: We won't have the opportunity to attend the Gam in person. It will be done through proxy voting and electronic voting prior to the GM.

One of the downsides of the current social restrictions I suppose.

Hi Setanta,

I spent the day reading the RNS and the circular and was reflecting on this Placing. Any dilution hurts all existing shareholders and JW and team are also shareholders so they too have been affected. So we are all in the same boat.

The fact that the Board has raised £9MM in this environment and at a sensible discount tells me that the IIs like the business and can see the vision of the management team. The fact that Harland has been open for business through the worst of the pandemic is admirable and clearly demonstrates JW and team mean serious business. It is a fantastic optic for clients who will appreciate the perseverence.

I posted a news article from Splash a couple of weeks ago which said the ship repair market is going to explore in Q3 and Q4 with rates doubling. We can see that happening now, hence the requirement for additional working capital becomes totally relevant.

Harland has three Viking vessels moored and there is more business out there. This is effectively downtime for cruise operators which they will most certainly utilise for repairs and refurbishments. We don't have to go looking for business. It is already in the yard!

Spud's comment on IM on the back burner is not correct. Harland is generating cash. The company needs to be generating revenues and so the focus to keep that momentum is fully justified. Even with the best will in the world, IM revenue generation is 3 years away. So naturally the focus has to be on current revenues and the ability to stand on our own two feet. I fully support the strategy.

I have posted through the technical docs for the marine licence and there is nothing in it that I believe is controversial. The science stacks up. The fact that DAERA are slow in moving things is something completely beyond JW's control. I am sure he and JT are really pushing hard, but there are limits. I am convinced that the ML will come through but it is a matter of process. I can only hope the NI ministers realise the economic potential of this project and speed things up. In this economic climate, that's the least that they should be doing.

I do believe that this placing will unlock a lot of value for the company. As much as all of us now detest the word "patience", that is what we need to have over the course of the next 12 months.

Ultimately, the reality is that we are all invested in a complex business that takes time to come to fruition. JW and team are probably one of the most efficient management teams I have seen in many years; highly skilled, deeply motivated and highly strategic thinkers.

Now more than ever they need our full support and backing. I shall be voting in favour of all the resolutions.

Where did you get the 700k per month number from Spud?

Very interesting article from Splash247.

The ship repairs market is going to be red-hot going into the Q3 and Q4 of this year. This plays beautifully into H&W's sweet spot. I am very confident that this company is going to go places!

https://splash247.com/ship-repair-prices-to-soar-as-lockdown-eases/

You are a star Dawski! A gem of a find and certainly validates what Harland was acquired for.

Reading past RNSes, I do believe that there is sufficient space to accommodate all three!

Bring it on!

Many thanks Setanta

I believe that Cenkos have published a detailed research note about Infa. I am unable to get access to it so does anyone have visibility? It will be good to hear what they have to say.

The FSRU project is a fantastic addition to the portfolio. JW very clearly laid out his 3-5 year strategy of building a portfolio of assets. Each of those assets can stand on their own in their own right. Each asset is strategic; there is severe lack of storage in the UK, H&W is a nationally strategic asset and the FSRU is the first of its kind in the UK. One just needs to look at the LNG flowing into the UK to realise the massive upside.

The fact that Infa pay nothing upfront is very clever. The consideration is tied to FID which is brilliant. Effectively, JW has created a call option on the project for free. At annual revenues of c£90mm, the consideration at FID is really small. The fact that the seller is accepting warrants at an exercise price of 5p just goes to show the confidence that the seller has in Infa.

At 5p, Infa's market cap in 3 years will be circa £200 million. If the seller is selling the project on the basis of that kind of valuation, it says something. They are a fund manager. They are not stupid. They see immense value being generated in the next three years.

Very interesting interview by Arun on Bloomberg. I like the shape this is taking.

Britain May Get First Floating Gas Store to Ease Reserve Crunch
2020-05-05 08:31:09.51 GMT

By Anna Shiryaevskaya
(Bloomberg) -- Infrastructure company Infrastrata Plc is
getting closer to order a giant ship that can both store and
regasify liquefied natural gas for a U.K. market lacking such
facilities.
The firm will decide on a floating storage and
regasification unit in northwest England in the next few months,
the company’s Chief Financial Officer Arun Raman said in an
interview. A consortium with two or three other companies,
potentially including independent oil trader Vitol SA, will be
formed this year, he said.
Just like in the oil market, the unprecedented glut of
natural gas has boosted demand for capacity to hold on to the
commodity for longer. Traders can’t store the fuel in tankers at
sea for long akin to oil traders because some of it evaporates
or gets used to propel the vessels.
That means greater demand for tanks onshore or in FSRUs.
The pandemic sinking consumption further has exacerbated the
need to store the fuel in anticipation of higher prices in the
future.
“Given what we are seeing in the LNG markets today, there
is clearly a need for LNG storage,” Raman said. “There is no
regasification capacity in the U.K. or in Europe at the moment.
Everyone is operating at over 100% capacity.”
At terminals across Europe, free capacity is running low
because not enough fuel is sent into the grids. That has created
a backlog of vessels that are waiting several days to unload the
fuel. Other European nations that are considering the FSRU
route, also as a way to diversify their supply sources, include
Germany and Greece.
Infrastrata’s project, which doesn’t yet have a definite
timetable for commissioning, would help accommodate a further
new supply coming from the Middle East and Africa in 2023-24,
Raman said.
Natural Gas Storage Tanks Are Filling Up Fast Across Europe
Infrastrata already has a relationship with Vitol after the
trader bought long-term capacity at its natural gas storage
project in Northern Ireland that will start in a couple of
years. Vitol declined to comment.
The company is also holding discussions with other partners
for the project at Barrow-in-Furness, which will have a capacity
of 5.5 million tons per year. They include another trading
house, a utility and an oil major, Raman said, adding that
Korean companies with trading arms have also showed interest.
“We have seen a lot of interest from trading houses who are
starting to bulk up on their LNG contracts,” he said.

Lets agree to disagree Razor.

Ultimately, all we want is a prosperous Infa!

Cheers

The job of a lawyer is to impart legal advice impartially.

The job of an auditor is to independently review and assess if the assets AND revenues AND costs presented by management reflect the true and fair of the company's financial position.

The job of a chairman is to independently review the decisions and corporate strategy set out by the management without having to be concerned about the value of his shareholding. If a chairman has a significant shareholding, is he going to be motivated to take hard decisions and be honest to shareholders or will he first try and cover his own position?

Independence is more valuable than one's own shareholding from a NED's perspective.

On the contrary Razor,

Nothing diminishes third party objectivity than the risk of losing one's own money or the greed to increase one's value of shares by doing something that would an independent third party would not allow.

There is a reason why auditors and lawyers do not take stakes in their clients' firms - otherwise they lose third party objectivity which is their principal function.

Its the same with NEDs. You will not have NEDS in private companies but you have NEDs in plcs to maintain that independence and to make sure decisions taken by the executive management comply with good corporate governance practices and shareholder interest.

Having a "vested interest" is a dual edged sword which every NED needs to very carefully consider. Infa's chairman's role is to ensure good corporate governance rather than appease us shareholders. The former is his primary role, the latter is beside the point.

I have never quite understood shareholder obsession of non-executive directors holding shares. In a typical AIM company of Infa's size, I would expect a NED to be on between 36k and 40k a year contributing to the corporate governance of the company. Corporate governance requires NEDS to be independent directors without any shareholdings. Whilst AIM is more relaxed about NEDs holding shares and discharging their duties of independence, other platforms are not so flexible. A NED's contribution is not in running the daily ops of the company rather to provide independent oversight of the executive board. So how do shareholders expect a NED to provide that independent assessment if they were to have a significant shareholding? It is fundamentally contradictory to a NED's position.

For the executive board to have a shareholding, I fully agree. It keeps them aligned to the other shareholders.

Dear Marine82,

Never seen you on this board. Kind of strange to have someone ****ging the company off and who has bothered participating in discussions although it claims to have been watching this share for a long time.

By the way, isn't this the same competent board of directors and management that you refer to that actually put Harland and Wolff into administration last year?

If that is your definition of competence, I suggest a visit to the dictionary at best and a visit to the shrink at worst.

If you want to deramp, at least use some borrowed intelligence.