The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Happy,
Italy have to pay or they can have assets impounded in non European jurisdictions.
It also counts as. a state default so will impact their credit ratings which will cost them 10 times the payout on their sovereign debt.
They will pay and fast. Please do some research around the Energy Charter before posting such drivel.
None of us wanted to see this but ultimately Ombrina Mare was always what made RKH investable and represented our insurance policy against this happening.
The pay out is now eveything. Surprised people are selling on this news today as it was becoming increasingly obvious that Harbour weren't doing anything to progress Sealion, hence Sam and co having nothing to say. Sounds like they weren't even talking!
As another poster said, good luck with Mexico!
With inflation clearly taking a grip, it’s only a matter of time before we start to see interest rates start to rise and Lloyds profits start to climb.
No coincidence that the share price has started to move on the back of the latest economic figures and surge in inflation. Now is definitely the time to jump on board and ride the black horse for the next couple of years.
Expect to do very well here in terms of capital growth and some hefty dividends.
Good find MPH. My experience of Sky is that they often post stories just before events occur and often get a nod or wink.Mark Kleinman always seems to have the inside track on Lloyds for example.
At least the Rockhopper spokesperson has made a decent job of presenting the facts.
A spokesperson for Rockhopper told Sky News: "The Energy Charter Treaty is designed to provide a stable platform for energy sector investments. The Italian government issued licences and encouraged significant investment in oil and gas exploration, based on this platform.
"Clearly it is not equitable to change the rules halfway through. It is also important to note that those rule changes made by the Italian government were not related to climate change and that Italy continues to produce significant quantities of oil and gas within 12 miles of the coast."
Excellent summary pdosullivan.
Wouldn't disagree with anything you have posted. Thank you for compiling and sharing
Not if you are buying the shares at below book value.
Current share price enables you to buy back the equivalent of £10 of shares for £8 and to then cancel them. A pretty good use of capital in my opinion. It’s like buying a wallet for £20 that comes with £30 of cash inside it.
Financially it’s a great engineering opportunity. In 7 years there would be half the number of shares so double the dividend per share and a share reprice of more like £1.25.
However they need to g for it and stick at it. Next is a good case in point.
Got to be a case for a large ongoing share buy back here.
If the market doesn’t want to value you properly , then the opportunity to buy back your shares at a considerable discount to book shouldn’t be ignored. At these prices they could buy back half the company in 7 years at £2bn a year at a cost of £14bn
They managed to pay out £20bn in PPI so why not?
Guaranteed way to double the share price ….
That’s a cracking find Ovets. Agree that it’s probably the most bullish statement we have seen in a long while.
For those who haven’t seen it, here’s the transcript….
Oil
Mr Speaker, last year I referred to the Sea Lion project being paused, this was due to the dramatic decline in oil prices, which affected the industry worldwide. Additionally, the onset of COVID-19 significantly impeded our ability to travel, which was incredibly disruptive for a sector which moves large numbers of employees around the globe.
However, I am happy to report that the government has continued to work closely with Premier Oil over the past year. This includes during the period in which they combined with another British company, Chrysaor, to form Harbour Energy. Harbour was listed on the London Stock Exchange on 1 April 2021, and government officers are now in discussion with the new management regarding the Sea Lion project.
We also used the intervening time to progress parts of the regulatory framework, and the long-awaited Offshore Minerals Ordinance is now advancing well through the legislative drafting process. When enacted this will bring in new environmental provisions and the implementation of the latest offshore safety standards, modelled on those in the UK. These are both critical in terms of ensuring that we have a robust capability to responsibly regulate future hydrocarbon development.
Meanwhile, the project planning process has now resumed in order to help define likely timelines and priorities. We are hopeful that the current recovery in the oil price to almost $70 per barrel, will be maintained, and in turn will create the conditions needed to support the successful execution of the Sea Lion project.
The delay in announcing the outcome is very strange given it was communicated that the arbitrators anticipated that everything would be done and dusted by the end of July.
Leads me to believe that the award details have been shared and Italy is looking for a quick settlement to get this sorted and not to suffer reputational damage.
For those of you who don’t believe they will pay / have to pay, have a look at what has happened with Cairn and India….. this won’t have been wasted on Italy or Rockhopper. For me no news is good news.
If nothing had been awarded then given there is no right of appeal, it would have been announced. No doubt in my mind that the delay is all about negotiating the settlement terms https://www.dailypioneer.com/2021/business/india-offers-cairn-energy--1bn-refund.html
If the market always knew best it would be impossible to make any money… it’s the fact that the market gets it horribly wrong sometimes that enables you to buy cheap and sell high.
In normal times it would be strange that the market isn’t chasing this higher ahead of the ‘award’.
However I think there are two reasons:
1 Rockhopper has been a serial failure for 10 years so it isn’t on many people’s radars and those who know about it haven’t got the stomach to throw more money at it. Look at the daily volumes
2. Oil and gas companies are out of favour and nothing short of poison to many institutions given the need to show green credentials.
3. We are on AIM and there remains a small risk that the arbitrators won’t find in our favour
Assuming a handsome payout, if we are suddenly a cash shell, with £200m in the bank and valued significantly below book, someone will simply come along, buy the business (the listing is worth £10m) and take the cash using it for whatever purposes they so desire. It might be Harbour or it might be someone with some cash and a business idea that sees an opportunity.
As such fair value will be realised and fast or the company will simply be bought out at below book for it’s listing and cash balance.
Understood Paul but how the profits on 30m barrels of oil plus sunk costs can equate to anything less then £250m is behind me, particular,y given what is being stated in the press.
ICISD have in my opinion missed their timeline because this isn’t going to be small but all over the papers and news when it is released so lots of preparation is going on behind the scenes.
Sorry Godders and the 3 numpties that’s have have recommended your post.
You are saying that having secured a payout of circa £250m the market is going to value Rockhopper at £67m?
And that Coe the avoidance of any doubt and taking this to its logical conclusion, if you were to find a wallet that cost £45 on the ground with £250 of cash in it, you would put it up for sale on eBay for £67 including the £250 of cash ?
I think you three need to go and get another hobby, preferably one you understand and know something about…..
Hey Buffit…….. always sceptical with this share as it has always been a serial disappointer, however in this situation it feels like ‘no brainier’ and probably one of the most straight forward trades you will ever see.
Just completed my trade for 49,743 shares. Will then sell into the bounce on the announcement of the award.
Much
Looks like the 1 share trade yesterday did signify that an RNS had been logged.
Worth looking out for another albeit the final decision is likely to hit the headlines before an RNS.
Any day now…. going to buy 50k shares this morning as given the odds and where we are time wise, best chance I have ever seen of trebling your money in a week.
Got to be worth chucking in £5k for 50k shares and potentially tripling your money over the next 10 days assuming the anticipated payout?
Very tempted to dip my toe in tomorrow morning .
Still amazes me that me that anyone in their right mind would sell a single share given what is about to be announced.
Ill informed or stupid?
Interesting that the infamous 1 share trade that often appears before an RNS appeared at 8.00 am.
Just saying………
Much
Does any anyone else sit here incredulous that anyone would sell a single share this week given what is imminent?
No they can’t appeal…