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I'm along term holder , I did my research and thought with Spirit investing 100 million and another 100 million waiting in the wings that it was a a good investment, especially at the time with Lancaster producing 11bopd and talks of 20 bopd
CA also a curved ball for me with them adding them adding a further 5% at 2.9p obviously to bring down their average like many , but surely they wouldn't throw millions at this if they thought the end was near.
Could Spirit be our white knight and takeover HUR , would make since if oil down there, especially with them already heavily invested. just trying to remain positive and hopeful but not a good strategy when investing :-(
below From Dec 19
price of oil is the only change since the operational update in December and todays update ...
9 million shares in total bought after hours at 17.5 People grabbing the shares at bargain prices ...
MORGAN STANLEY LABELS HURRICANE ENERGY SHARE PRICE DROP 'OVERDONE'
(Sharecast News) - Analysts at Morgan Stanley reiterated their 'overweight' recommendation for shares of Hurricane Energy, labelling the recent drop in the share "overdone".
While disappointing, since the oil explorer's update on its discovery at Warwick West, the stock had fallen by roughly 25%, so that they were now assigning no carrying value for the Greater Warwick area and pricing-in an approximately 20.0% discount to the value of the Early Production System at Lancaster.
Under the assumption of a price of Brent crude oil of $60.0, Morgan Stanley estimated a net asset value for Hurricane of between 54.0-214.0p, depending on the valuation for the contingent resource base in place at Lancaster and Lincoln.
A 54.0p NAV would mean zero value for the contingent resources, with the valuation fully dependent on the 2P resources at the Lancaster EPS (48.0p) and Lincoln (9.0p), they said.
"Whilst the update on Warwick West can be considered disappointing for the overall Greater Warwick Area, we note that both the Warwick wells (Warwick Deep and Warwick West) were targeting prospective resources [...]," they said.
"We believe these have limited bearing 1) on Lincoln 2C resource base of 604 mn bbls (gross) and 2) on the Early Production System at Greater Warwick Area."
The analysts also termed Hurricane's update on the Lancaster EPS the day before as "reassuring", highlighting how it followed a series of positive data points.
"There is nothing in yesterday's update to suggest any negative read-across to Lancaster EPS and any reduction in its valuation."
In terms of the likely next catalysts for the shares, Morgan Stanley pointed to a technical update on the Lancaster wells expected by year-end 2019 and further details on production at Lancaster to help determine the contingent base at the Lancaster field in the first quarter of 2020.
RNS IN Dec had same info as described today
The news wasn’t new Hurricane always knew this could be the case see clip from December operational update ...
The tie-back of a Lincoln well to the Aoka Mizu FPSO, tie-in to WOSPS, and associated modifications to the FPSO are still planned for 2020. Obtaining regulatory approval for this plan may, however, delay activity until 2021. Confirmation of the tie-in programme is expected during Q1 2020. In the absence of OGA approval for the tie-in of the Lincoln Crestal well (205/26b-14), the licence partners will be required to plug and abandon the well before 22 June 2020 in line with current regulatory approvals.
CRYSTAL AMBER FUND LIMITED (“Crystal Amber Fund” or the “Fund”)
Monthly Net Asset Value
Hurricane Energy plc (“Hurricane”)
Over the period the company drilled and tested Warwick West. This completed on time and on budget the three-well 2019 programme funded by Hurricane’s JV partner, Spirit Energy. The programme confirmed reservoir productivity from Lincoln Crestal, where oil had been discovered in 2016, at depths 500 metres deeper than at Lancaster. It has also confirmed oil in a separate fault- bounded area within the Greater Warwick Area. Warwick West proved light oil, of similar character to Lincoln and Lancaster. However, the stabilised flow rate achieved on test was significantly lower than at Lincoln and Lancaster. A detailed review of the results will be required to understand whether the Warwick structure is commercially viable.
The EPS continues to deliver oil in line with guidance. The headline production figure of 2.8 million barrels of oil sales with average production 13,300 barrels / day since start-up is very satisfactory. For 2020 brokers estimate that with 18,000 barrels per day of production at $65 per barrel the company should generate $270 million in operating cash flow. The addition of well stock and debottlenecking activities to increase the EPS vessel productivity to 40,000 barrels per day should see operating cash flow grow to $400 million in 2022.
Cash generation gives Hurricane optionality to explore, invest to increase production, or consider returns to shareholders. At the current share price, the Fund believes that a buyback of shares could be an attractive use of capital in the interest of the company.
Over the quarter, Hurricane’s share price fell by 21.4%.
Meanwhile, a 120 room Sunprime hotel called Tamala Beach is also due to open in The Gambia in winter 2019.
Thomas Cook’s Hotels & Resorts boss Enric Noguer said: “Expanding our own-brand hotel portfolio is central to the success of the whole business. Operating and overseeing a group of well-managed and high-quality hotels that our customers recognise and turn to for the better service and reliability they experience is an important part of our strategy as a group.
“These latest announcements demonstrate further progress in developing our Hotels and Resorts division into a hotel company within Thomas Cook, working with strong partners and focused around hotel management, franchising, and sales and distribution.
“Next year we will add three more managed hotels taking our total to 24 hotels as we accelerate our ambitions to take on more management contracts for hotels around the Mediterranean.”
Separately, Aldiana, the club resort Thomas Cook now owns 42% of following an investment last year, will also open a club in Ampflwang, Austria, as well as a new-build resort in Calabria.
This is a more recent article highlighting the progress being made since the last article
Thomas Cook is to open 20 own-brand hotels between now and the end the next year.
The hotels will include six in Spain, four in Greece and three in Turkey.
The move – which comes as Thomas Cook drops nine existing hotels which do not meet its quality standards – will see the company open its first Casa Cook in Spain, its biggest market, and the first family Casa Cook.
The breakdown of the new own-brand hotels is as follows: two Casa Cook’s; seven Cook’s Club hotels; six Sentido properties; four SunConnect hotels and one Sunprime property.
The new openings will take Thomas Cook’s portfolio to 200 hotels with around 40,000 rooms, making it one of the largest hotel groups worldwide. They include three more managed hotels, taking the total to 24.
The expansion forms part of Thomas Cook’s aim to deliver sustainable, profitable growth through a portfolio of own-brand properties that have higher customer satisfaction levels, more repeat guests and deliver higher margins than the company’s broader range of hotels.
The 189-room Casa Cook Ibiza opens next summer and is one of the key assets of Thomas Cook Hotel Investments, the fund the company launched earlier this year with hotel development company LMEY. The hotel will be managed by Cook and it is anticipated 75% of guests will be new to the company, following the success of the first two Casa Cook openings.
The second Casa Cook to open next summer will be the first property for families. The 106-room hotel in Chania, Crete, originally due to open this summer, takes an alternative approach to the traditional kids club, according to Cook. Its focus is on learning through play, art and local culture.
Following on from the success of the first Cook’s Club hotel in Crete this summer, the seven new Cook’s Club hotels will include a managed hotel in Palma Beach, Majorca, currently one of the company’s Smartline hotels, as well as two franchised hotels in Turkey, a further two in Greece and another in Italy. There will also be a Cook’s Club in Gambia for winter 2019.
The company expects to confirm three more Cook’s Club properties in Bulgaria, Egypt and Greece in the near future.
Six of the newly announced properties for next year will be under Thomas Cook’s largest own-brand of hotel, Sentido. This will take the total number of Sentido hotels to 70.
The new Sentido hotels include a 184-hotel in Majorca, which will be refurbished and will sit within Thomas Cook Hotel Investments.
Four of next summer’s new hotels will be under the SunConnect brand, Thomas Cook’s other family-focused brand, taking the total to 20 across Europe and north Africa. The company said it has put ‘significant’ investment in the brand in terms of quality, training and support in the last couple of years, which has led to an increase of more than three points in its Net Promoter Score in two years.
Meanwhile
Here's the information on the Hotels you requested earlier : Very positive, real, happening and ahead of strategy goals.
Thomas Cook today announces that its hotel fund joint venture with LMEY Investments, Thomas Cook Hotel Investments (TCHI), has secured its second round of debt funding with €51 million from CaixaBank, one of the leading banks in Spain.
The funding takes the total amount raised in the last three months by TCHI to €91m, following the initial tranche of €40 million from Piraeus Bank.
The funds will be used to invest in opportunities in Spain and around the Mediterranean. TCHI has also agreed to acquire a 250-room hotel in the Canary Islands, as well as another 300-room hotel in the Balearics. The seven hotels in the fund now take the total asset value to around €250 million and 2,200 rooms.
The fund aims to comprise 10-15 hotels within the next two years. A pipeline of further hotel acquisitions has been identified and the team is focused on executing an expansion plan over the coming year.
TCHI was established in March 2018 to support the growth of Thomas Cook’s own-brand hotel portfolio as part of the company’s strategy of achieving greater control over its hotel inventory and customer experience. The hotel fund aims to acquire underperforming, distressed and underinvested hotels in Thomas Cook’s core destinations and transform them into own-brand hotels.
Enric Noguer, Chief of Thomas Cook Hotels & Resorts said, “This new round of funding is a big step forward for TCHI, providing us with support to accelerate our acquisition programme in our biggest holiday destination. The fund’s flagship hotel, Casa Cook Ibiza, opens this summer and with this new funding we’ll be able to create further top-class hotels and holidays for our customers.”
CaixaBank is one of the leading institutions in Spain for company loans. In 2018, it granted €21bn in loans to companies and has a market share of 15% in this credit segment
that appears to be shorts squeezing the price down in order to offload the millions of share they have on loan ,
the fund was established in March 2018 ... you numpty .........................can you not read ... and to date they have opened the 15 hotels ....................
Thomas Cook today announces that its hotel fund joint venture with LMEY Investments, Thomas Cook Hotel Investments (TCHI), has secured its second round of debt funding with €51 million from CaixaBank, one of the leading banks in Spain.
The funding takes the total amount raised in the last three months by TCHI to €91m, following the initial tranche of €40 million from Piraeus Bank.
The funds will be used to invest in opportunities in Spain and around the Mediterranean. TCHI has also agreed to acquire a 250-room hotel in the Canary Islands, as well as another 300-room hotel in the Balearics. The seven hotels in the fund now take the total asset value to around €250 million and 2,200 rooms.
The fund aims to comprise 10-15 hotels within the next two years. A pipeline of further hotel acquisitions has been identified and the team is focused on executing an expansion plan over the coming year.
TCHI was established in March 2018 to support the growth of Thomas Cook’s own-brand hotel portfolio as part of the company’s strategy of achieving greater control over its hotel inventory and customer experience. The hotel fund aims to acquire underperforming, distressed and underinvested hotels in Thomas Cook’s core destinations and transform them into own-brand hotels.
Enric Noguer, Chief of Thomas Cook Hotels & Resorts said, “This new round of funding is a big step forward for TCHI, providing us with support to accelerate our acquisition programme in our biggest holiday destination. The fund’s flagship hotel, Casa Cook Ibiza, opens this summer and with this new funding we’ll be able to create further top-class hotels and holidays for our customers.”
CaixaBank is one of the leading institutions in Spain for company loans. In 2018, it granted €21bn in loans to companies and has a market share of 15% in this credit segment.
Tcg has 20 million paying customers .. in the whole world , to pay for the hotels ... you keep digging that hole.. with no facts and no understanding of the English language or Thomas Cook .. so funny massive wholes ????
Lol .. liquidity improves this part of the Cycle.. collecting payments for holidays that Thomas cook had already purchased 2018 .. therefore debt reduces... liquidity improves hence them securing the bank commitment for winter 2019/2020 to cover any shortfalls if needed whilst the sale completes ... the banking facility is a short term 6 month facility that repays in June 2020 .. if they use the facility I might add
it’s called headroom and good forward planning imagine if they went to the bank now what the answer would be .. good forward planning by the new CEO
Lufthansa haven’t pulled out they have said they don’t think they will be the winning bid .. therefore bids are on the table
For me nothing changed other than the strategic review as flushed out much more interest than was expected. Even in April the CEO. Said he was surprised and encouraged by the offers already received.
These will be very complex negotiations especially with the involvement of the main shareholder Fosun , who have been steadily building a 18% position and also in partnership building two hotels in China that are due to open soon.
Growth in China is also doubling year on year last year stood at 320,000 customers. If that rate continues in 2 -3 years will be 1.5 million new customers in China alone.
It’s tough on long standing shareholders watching the company and share price drip lower ... but based on the 6 month presentation ,questions and answers given , and reassurance reference liquidity , the 300 million secured extra funding if needed . CEO at the presentation also confirmed during questions and answers that the funds if needed were not based on the sale of the airline,
He also intimated the negotiations to sell the airline wouldn’t be completed during this Financial period but hoped to complete before June 2020 , not next week or next month or the month after. Liquidity is strong , therefore patience and faith and good results next quarter should improve the outlook.
There isn’t a need for anyone to rush in and buy 103 aircraft from Thomas Cook unless it wants access to specific markets and in that case, the primary focus would be on slots,” Nuala McMahon, analyst at Goodbody, said
However, it is clear that we need greater financial flexibility and increased resources to accelerate the execution of our strategy of differentiation: to invest in strengthening our own-brand hotel portfolio; further digitising our sales channels; and driving greater efficiencies across the business."
This was written in April before the doom and gloom press started to effect Tcg
So what would a buyer get? The airline’s 103 planes carried 20 million passengers last year, generating revenues of £3.5?bn, with underlying profit of £129?m, up 37pc. It also has a slew of valuable landing slots around Europe.
Analysts have put a £1?bn price tag on the airline, but Thomas Cook insists “all options” are open, so it could retain a significant stake, or sell bits piecemeal – its planes are split between Germany, the UK and the Nordics. It will need to form close ties with its buyer as the planes will continue to feed passengers to Thomas Cook’s hotels – a handy, ready-made customer base.
The airline has been growing at a decent clip and only 45pc of its seats now go to Thomas Cook package holiday fliers. But in a consolidating market, it is perhaps too much of a middleweight to survive on its own. It requires investment too and Thomas Cook reckons it can differentiate itself better through the hotels it offers, rather than the two-hour flight to get there.
This statement was a positive one and nothing’s changed just pure speculation.. the airline is a valuable asset .. simples ..
The announcement came just two days after German carrier Germania went into administration leaving tens of thousands of German passengers without flights. But Thomas Cook group chief executive Peter Fankhauser insisted: “Our group airline continues to have a good performance led by a particularly good performance by Condor in Germany.”
The group has four carriers operating a fleet of 103 aircraft – Condor, which is the biggest, Thomas Cook Airlines UK, and Thomas Cook Airlines Scandinavia and Balearics. One quarter of the fleet operate long haul which continues to be an important growth area for Cook.
Fankhauser said: “Our group airline is a great business, one of Europe’s leading leisure airlines, carrying 20 million passengers to 120 destinations.”
The carrier reported an underlying operating profit of £129 million in the year to September.
It’s not the first time Thomas Cook’s airlines have been touted for sale – rumours of a sale have circulated for years and the company was reported to be considering a sale last August.
Asked why sell now, Fankhauser dismissed all reference to Germania and said: “I want to underline we kept a healthy liquidity. This is a strong business. We have grown revenue and profits with our airline. We have an excellent position at our airports.
“We have a healthy business which we feel is in a good position to review. It is right we consider what options we have to go faster on our core strategy.”
Thomas Cook separated its airline and tour operations two years ago after combining the carriers into one in 2013. About 45% of seats are taken by the group’s tour operators.
Fankhauser suggested a sale would only proceed with guarantees on the future commitment of seats to the operator.
He said: “The airline is built on the strong relationship of the tour operator and airline and that is going to stay in whatever scenario.”
Fankhauser declined to give further details, saying: “The review is at an early stage.” But it is likely a joint venture will be among the options examined.
He said: “This is a logical step. We always said we don’t need to own an airline. We have a great business, but as a holiday company we don’t need to own an airline as long as we have a strong commercial relationship with the airline.”
The carrier’s airport slots will be among its most-valuable assets. It has 400 slots at Frankfurt, more than 230 at Dusseldorf and 160 at Munich, as more than 350 at Manchester and 200-plus at Gatwick.
Fankhauser said: “They are all great airports. That makes our airline proposition extremely valuable.”
The slots are the Jewels in the crown, The companies bidding for the airlines are doing so to get there hands on the slots because vacant slots come at a premium and not theirs not that many available, when they do, it becomes an auction process which inflates the price.
Also Lufthansa hasn't said they wont bid for the airlines in Germany , they have said, " they do not think their bids will be the winning bid " , a completely different view.
Do you think Lufthansa wont want to get their hands on the available slots in Germany 400-odd at Germany’s main hub airport Frankfurt, 232 at Dusseldorf and 162 at Munich.
Is that the main reason for several bids for the airlines ? obviously the 9 million customers that book with Thomas cook , which its been muted will form part of the negotiations and valuation.
Another positive view is that the airlines currently makes a profit circa 110 million , TCG debt costs circa £150 million a year, remove the debt and you create profit for the Tour operator business, funds to accelerate the hotel business. Its reported to have improved margins of around 5% measured against the franchised hotels this also frees up cash in the winter period because TCG would have less Franchised Hotels to pay up front a requirement to secure rooms for the seasons ahead.
interesting article
A healthy business
The airline group generally turns in an operating profit, having cut its cost base over the past decade or more.
The carriers – Condor of Germany, Thomas Cook Airlines UK, Thomas Cook Airlines Scandinavia, and the recently established, small-scale Thomas Cook Airlines Balearics – operate as a single airline.
The Thomas Cook and Condor brands are strong – when the latter was ditched for a time in Germany in favour of Thomas Cook it was brought back by popular demand.
They operate a fleet of 100-plus aircraft, carrying more than 20 million passengers a year from some of Europe’s primary airports to popular holiday destinations.
The group’s long-haul flights occupy one quarter of the fleet and are increasingly popular.
Thomas Cook operates a hub-and-spoke model for these, unusual for a leisure carrier, funnelling passengers on to long-haul flights from Frankfurt and Manchester through partnerships with other airlines.
It has a healthy seat-only business comprising about 38% of traffic.
However, two assets stand out.
First, the group has attractive take-off and landing slots at capacity-constrained airports – 400-odd at Germany’s main hub airport Frankfurt, 232 at Dusseldorf and 162 at Munich.
At Gatwick, Thomas Cook has 200-plus slots and at Manchester 350. These alone would make the airline attractive to rivals.
Second, nine million of Thomas Cook’s 20 million airline passengers a year are customers of Thomas Cook, the tour operator.
That is a large proportion of seats filled by holidaymakers who have booked a package. It’s the sort of percentage easyJet would love to see its easyJet Holidays attain.
here are the facts ,
Evans joins as director of operations on July 1 from his most recent role as chief operating officer at Karisma Hotels & Resorts to oversee Thomas Cook Hotels & Resorts.
His background includes 15 YEARS at Tui, including 11 years as MANAGING DIRECTOR for its HOTEL division
Cook’s hotel division now has around 1,650 people based in Palma, on the Spanish island of Mallorca.
Enric Noguer, chief of hotels & resorts for Thomas Cook said: “Given our recent expansion with 12 new hotels already opened this summer, I wanted to add more strength within our operations team and bring together the teams across Spain and Greece as well as franchise hotels and guest experience, training and CRM under one leader.”
TCG IS EXPANDING ITS OWN HOTELS DIVISON IN READINESS and part of the strategic review FOR THE SALE OF ITS AIRLINE . stated in last presentation FACT
your point is ? , read below .... Evans joins as director of operations on July 1 from his most recent role as chief operating officer at Karisma Hotels & Resorts to oversee Thomas Cook Hotels & Resorts.