Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
I am in agreement with you on this.
Cash is tight for H1 so being on track with the new contract is key (all be it one that had slipped from last years original timeline). Once they get through this year they will be financially more secure to take on further contracts.
One thing that I used to be concerned about was other companies coming in and competing for the work. However, even with their prior experience, the amount of time and effort over past year to get the FAI's, has made me realise that it would not be at all easy for this to happen and that they do have a good 'moat' around the business.
Wilsons exercise and sale of all his options (not just those to cover the tax) announced after the close yesterday was a pretty good indication of what was going to be in the update.
It seems odd that it is allowed even although it is only 1% of his holdings.
As expected did not scale back so I got all of my shares back plus some extra. In the end it increased my average holdings by 1%, as it was near zero risk it was just about worthwhile (mainly because I have a relatively large holding..).
The dilution to this years revenues was 0.05 p, I had calculated it to be 0.08 so marginally lower than expected. This figure does not include the historic reserves. The impact on the nav is hard to judge as it moves daily. Net borrowing has fallen from 10% to 7%.
I do feel that the whole placing was contrived to let one or more II's in and the wrap issue was just a sop to retail investors. Hopefully they will make good use of the funds raised for new investments and we will see a benefit from the exercise.
So, around 1.7p more to go on the nav (to 108.5) before it goes ex-div in April and then a 5p divi, what do you think Trotsky?
Back down to around 0.2 per week , so it does look as if the income flow in January is higher.
It looks like they were not over subscribed for the wrap issue -around £4.6M raised vers a cap of £6.8.
I took a punt and sold half of mine across two accounts at 172.3, if they have not scaled back then I will not get rich but it will compensate for the dilution of reserves and cover the cost of a short holiday. If they do scale, I should still get the excess back without a loss (especially as the nav has slipped the past few days).
£32m plans for Chapel Down winery in Canterbury face High Court legal challenge
https://www.kentonline.co.uk/canterbury/news/battle-to-block-32m-project-to-create-england-s-sparkling-301116/
I may be wrong, but it looks like they are letting the sp creep up above their typical premium so that when they issue the placing shares next week, at half the usual premium, it will look a better deal due to the 'apparent' larger discount on the share price.
'Water Intelligence plc is pleased to announce that since the beginning of 2024 it has signed two national contracts, which launch on 1 February, between its American Leak Detection (ALD) subsidiary and top-tier national insurance companies in the United States'
Nice to see some expansion and probably explains the sp increasing over the past couple of weeks....
Apologies -I woke up, thought is the net cash is low because of buybacks, then read the budget update (0.9) as buybacks and thought that the numbers looked more in keeping with what I was expecting for net cash, it will teach me to have breakfast and find my glasses before I post anything!
I agree the 0.1 is most likely because they have purchased beneath the nav.
However, this then leads back to why was net cash so low for the last quarter? I thought that mentioning production was 13% down for year was a bit of a deflection as the results were all about Q4 where wind speeds were around average.
Unless they used new money to replace the existing turbines then it would not affect depreciation. In the past they have not replaced assets but increased them. I think that they have started to show depreciation because they have either been asked to for transparency or there is a tax advantage in doing it this way. 8+ p per year would write the existing assets off over twenty years which seems reasonable.
I think what I was missing was viewing net cash as income from generation (less costs) - which historically is what it was - but, they now have buybacks - so is the net cash lower by the amount of the buybacks?
It would make sense, and the numbers would be more in line with past income (3.7+0.9) and over x2 div cover.
What is not clear, is if this value is inflated because the shares are being bought at a 10% discount, the 0.9 may be reasonably inflated by 10%, still this is a marginal difference.
It is a shame they do not add a little more commentary to the Factsheets.
Some number behind what I was saying.
Why are they now showing depreciation and why has it stepped up so much?
Data in nav/per share form Factsheets.
June - depreciation 1.6 for 6 months ( not specifically mentioned in the factsheets before this) -net cash 8.8 (so av 4.4 per quarter), divi 4.1 for half year
Cash less divi and depreciation(for half year) 8.8-(4.1+1.7)= +3.0
Sept 2023 depreciation 1.7 for 3 months, net cash 5.2, divi 2.2 5.2-(2.2+1.7)= +1.3
Dec 2023 depreciation 2.1 for 3 months, net cash 3.5, divi 2.2 3.5-(2.2+2.1)= -0.8
March 2024 depreciation 2.2?* net cash?, divi 3.43 ?-(3.43+2.2) need net cash >5.63
June 2024 depreciation 2.2?* net cash?, divi 2.5 ?-(2.5+2.2) need net cash> 4.7
One has to assume depreciation is fixed (beyond increasing with the number of assets), as are the divi’s, so they will need almost 2x div cover (4.7) if the nav is not to drop each quarter after Q2 without other factors coming into play (and a one off net cash greater than 5.63 for Q1).
Wind speeds actual / long term average
2023 -Q1 9.2/9.8 Q2 6.9/8.2 Q3 8.0/7.8 Q4 9.1/9.2
Fair to say that the 2nd quarters wind was notably low but the rest was close to the 20 year average and Q4 should be reasonably representative of income (and this is with energy prices still relatively elevated).
* increased this by 0.1 for Kype Muir.
Any thoughts?
I agree with most of what you say (including about the REGO's), but the wind speeds were average for the quarter so it is hard to put reduced income for the quarter down to this. They also have the London Array contributing as well now so I was expecting an uplift from this.
They have a conference call with the Annual Results soon so there will be an opportunity to quiz them on it then.
The income clearly covers the divi. However, this quarter divi distribution plus the depreciation was greater than the income . As these are the more 'consistent variables' (and the divi's are also increasing) then will need to get used to a constantly falling nav going forward?
Less concerned by price/inflation impact on nav as these will normalise over time, plus will be in part, be countered by the change in the discount rate.
Is there something I am missing?
12.5% over the long term average.
The higher winds for December made up for the lower ones in November (and to a lesser extent October) to leave the last quarter only 1% below the long term average.
It is unusual to get the Government data before the company releases its quarterly results so UKW are clearly running a bit late with them this month.