The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Surely the funds doing “the same job” have the same shares but charge you more?
Other than spreading your risk and increasing diversity across a fund, I doubt returns after charges will be as good.
I have a few funds and accept the lower returns due to charges to increase my diversity. The income shares return more in divs and capital growth (or not) is similar.
Mmm - not sure the required skill sets for CFO and COO are the same! One does numbers and spreadsheets and one does what are we going to do and how should we do it?
Replacing CFO with COO looks more like a personality thing than a better functioning board. Hopefully only temporary.
Just getting matched finding would be a nice start.
Why Ireland?
Well given likely markets now and in the near future being registered in EU not UK makes perfect sense. And of EU countries, think Ireland is most helpful with Corporation Tax etc (for when we make a profit).
Makes sense to me
Why should “they” support the share price? The BBS remove a load of shares and mean there’s less to pay dividends on. Think the jury is out on whether BB have any real impact on share price.
BoDs main job should be explaining to investors why their business model works and provides a sustainable dividend - if the market can’t see that they need to explain more (hence the investor RNSs).
Real buyers and sellers set the SP, not the BoD.
Oops apologies. The article reads as though Altato and Bayou are new plants - obviously they’re not!
Press on with the biggies who might produce in 2028 if things go well and they can be funded!
A long time with little or no income.
Well that’s a positive article (but guess a waste magazine promoting waste to SAF would be).
They claim VLS have the £27million grant!
Rather than jumping in with big facilities surely building a small scale demonstrator to show to potential investors is a better way forward.
Looks like VLS are finding and building more plants - not their forte and a massive drain on cashflow. Looks like a risky choice but perhaps they didn’t have one.
I’m sure GG knows far more about finance than either the banks who recently set up the credit facility and Rusty and the BoD (who have significant personal holdings) so we should be grateful he’s taken time out from running major financial institutions to share his Chap 11 thoughts.
Or perhaps he was just bored sitting in his bedroom at his mum’s waiting for his PlayStation to boot up.
DYOR but I’d take his with a large pinch of salt.
He’s out (if he was in) so hopefully he’s got better things to do now.
What did village idiots do before internet trolling?
Lots of weasly words about on this.
Refinance in this case = loan.
Performance numbers seem to alternate between plant uptime and output, agree they are linked but probably not linearly.
Think if I was a potential investor / providing a loan I’d be focussed just on output metrics. How much power / heat is being sold out the front door. If there’s a bit of start / stop, tweaking controls for different feedstocks etc, who cares if planned outputs are met? However, if we’re only producing 80% of planned output that’s a problem. Any forecast output should be 100% achievable to encourage investors.
Notrex, the mooted BB was coincidental with a stop to the slide in SP and a move back from mid 80s to low 90s - whether the 2 events are linked we’ll never know.
Although you’re correct that BBs now would save 15% ish over 12 months, a company that just buys its own shares to reduce dividend payments ain’t going to increase profits.
DEC need to keep adding producing assets to at least cover the output declines in current wells else profits (and hence dividends (and hence SP)) will all fall.
Personally I think their advertised quest for producing assets at the right price is the way to spend the money they have seemingly put up one side.
The refinance is good news as it shows at least one bank has looked at the numbers / viability of the MDC tech and decided they are happy to loan against it.
It’s also good on that the money will ease cashflow and prevent yet more dilution by placing.
However, it certainly isn’t income or profit and how Simms can call it payback is ludicrous.
It’s just a well completed loan application that the bank has approved.
AoC - unusually your numbers are correct (although once again you fail to qualify that these are in thousands). However, you fail to add the explanatory notes which paint a better picture.
NET CASH PROVIDED BY OPERATING ACTIVITIES
For the six months ended 30 June 2023, net cash provided by operating activities of $173 million decreased $32 million, or 16%, when compared to $205 million in 2022. The decrease in net cash provided by operating activities was predominantly attributable to the following:
• A turnover in our working capital position of $194 million. reflecting the impact of the rapid changes in commodity markets during the post-pandemic era. During the six months ended 30 June 2022 commodity pricing was rapidly accelerating allowing us to build a working capital benefit of $92 million. When prices cycled back down in 2023 the build up in working capital began to unwind generating cash outflows of $102 million;
• These outflows from working capital turnover were offset in part by a $59 million increase in Adjusted EBITDA as well as declines of $64 million in other adjusting costs during the six months ended 30 June 2023 when compared to the six months ended 30 June 2022. Additionally, our hedge modifications transitioned from an outflow of $7 million to an inflow of $17 million offsetting an additional $24 million in year-over-year working capital turnover.
SP might also be as a result of some pretty crap reporting.
Terry's previous link has a hyperlink to 3 DEC warning signs: under that is some complete and utter garbage about them not being profitable so only assessed on Price to Sales ratio and that they should be profitable in 3 years! The next bit is a direct quote - again utter rubbish. Doesn't take much to scare some people. As per the old adage we just have to stay solvent longer than the market stays irrational - the Div helps that. :-)
"Diversified Energy's earnings have been declining at an average annual rate of -76.2%, while the Oil and Gas industry saw earnings growing at 16.8% annually. Revenues have been growing at an average rate of 48.6% per year."
Interims were really only business as usual so not surprised market hasn’t piled in. If they didn’t like it last week there’s not much to change their minds this week. Though for holders who like the model there are lots of marginal gains to be seen.
More interestingly, Rusty says:
“ We believe that significant opportunities through outright sales, advantageous joint ventures, or other partnership constructs will provide a catalyst to unlock our net asset value upside and drive organic, no-cost production growth”
So he looks like he’s got something up his sleeve for SP.
Not sure we can win on the results.
If gas spot price was high when accounts were finalised we get better future hedges but the difference looks like a loss in accounts.
If gas spot price was low we make more profit but get worse future hedges!
Perhaps delay in results was due to BoD waiting for a daily drop in spot price to minimise “apparent hedging losses” in accounts.
You wouldn’t want to finalise accounts and do hedging on the same day. Tricky!!!