Member Info for greygeorge

Andy144, seriously, if you had a company that comfortably hedged all your sales in advance, and made a profit, why would you modify those hedges at a cost of over 100 million dollars unless you had to cover a shortfall in your production ?

Good point. Maybe they just wanted to give 100+ million to a good cause ?

Andy144. Was zero in 2021 too. But it shows one of the big problems with DEC, that it doesn't produce enough gas to satisfy it's forward sales, even if it states only 80-something % of it's daily production is hedged, it's producing a hell of a lot less than it's declaring. Which when the market operates 'normally' they can buy some days cheaper than their hedge (making a little on the deal) other days they lose when the spot is higher. But last year wasn't normal, hence a loss of 100+ million dollars that WILL occur again if gas increases by much more than a normal daily trading range. And if they're overstating their production, it raises questions about reserves, and the basic honesty and soundness of the company. It got caught by the events of last year.

Notrex the small crumb of comfort I take from this is that I'm losing my money because the scam wasn't evident at the time I bought. You, and those like you, on the other hand, keep ploughing your money into this company. Though, to be fair, you haven't provided a single shred of that 'proof' than you are in any way invested in this company, let alone that you're still buying.

Jonhas, tell me something - If companies and institutions only invest in other companies that are financially sound, why do those financially sound companies sometimes go bankrupt ?

So, you're buying DEC at this price then, notrex ?

Also, jonhas, institutional investors usually hold a counter-position that mitigates losses. So they can hold without too much pain. It's why they are BIG, and we are SMALL.

One of a number of key issues, notrex.

Jonhas, do you REALLY believe the rantings of one anonymous unhinged individual on a backwater message board can move a share down almost 9% in a day ?

Damn, I forgot the link. Sorry.

https://d1io3yog0oux5.cloudfront.net/_74b7a1048172d85a968a1e9e5575f183/dgoc/db/553/4652/file/DEC+2022+Final+Results+Presentation.pdf

Andy144 - Here you go, scroll down to page 44, cash flows from financial activities, hedge modifications associated with ABS notes (105,316) - there's more detail somewhere too, and yeah, that headline figure have been slightly less than the 145 million I quoted, but I don't have time right now to find everything I was referring to. Yeah, imagine that notrex, eh ? Having to take more than a minutes to come up with the exact page and line item where in a Company Presentation a figure I quoted can be found. I'm so stupid, lol..

Andy144 - I need to go dig it out, it's referred to somewhere in one of their presentations under 'hedge modifications' - Off the top of my head, went from a loss of 24 million in FY 2021 to a loss of 140 million FY 2022. I'll get back to you later with the actual announcement.

answer - it lost over a hundred million because it had to buy gas on the open market to cover up the fact it wasn't producing as much as it claimed. in the normal course of events, daily rise and falls could cover the production shortfall, but when the spot or open market price soared, dec lost a ****load of money.

Andy144, yes you're right. 105p it was. But it was at that point things I was being told about DEC were becoming evident.

Look, here's one fairly simple example of dubious accounting, forget Tanos for now. Let's talk hedging (AGAIN, lol). Now, DEC has stated for years, right, that it hedges at prices AT WHICH IT MAKES A PROFIT that covers running the company, repaying debts, and paying a dividend. We agree this is their stated aim right ?

So, last year, as gas prices soared, DEC was supposedly sitting on a profit that was not as huge as it might have been had they 'forward sold' less and had kept some production back to sell a greater amount at 'spot'. Not massive profits then, but profit SHOULD have ben made, nevertheless. All good. Not breat. But good.

So, WHY does DEC announce earlier this year that it LOST OVER a hundred million re-jigging hedge contracts that it was already making a profit on ?

I would say, judging by the market's opinion of this share, and the decline from 102p to 75...74...73p today suggests I'm not the only one who has just a teeny weeny bit of doubt about this company's accounting practices.

Ask yourselves this one question.

Are we smarter than the whole market, and see what the rest of the world doesn't, namely this is a fantastic company that is honest as the day is long and exists to reward its' shareholders handsomely for the genius investing decision, or are we the mark who can't see what's occurring before our eyes ? Are we small band really smarter than the market ?

Hghotshot - 'How do you know all this?'

READ MY POSTS !

Notrex, at 102p I started posting the problems with this company. At 102p you were extolling the virtues of this company. I stand by my ascertions. Do you ?

OR in a couple of weeks, the heating will go on. In a couple of months we will see the price of gas spike. DEC will be in focus again as it has to buy gas at spiking spot prices on the open market to cover the forward sales it's made through hedging of gas it doesn't have and can't produce to make up the shortfall.

Notrex, you've got me. the ONLY thing I know for a fact is back in March this share was 102p. Now, it's below 75p. That is the only fact I have.