GKB, You didn’t trust AB or others here? Still cheap here with 40p broker target. US production growth slowing down. China factories to restart production after some weeks delay after Chinese New Year. Workers start to return to factories and just waiting for green light from government to start.
Hi L7, My take on Magnus last year if you exclude the 100 mill vendor loan to be repaid over 5 year. First approx 2/3 of the year Enq got 100% FCF of the 75%. Last 1/3 of the year they got 25% + 75/2%. = 62,5%
So 2019 equal approx 70%.
2020 Enq continue getting 62,5% but with slight less interest rate at the vendor loan. So maybe 6-7% less FCF for Enq from Magnus.
They need to learn hedge more to secure a big profit once oil is high. Like a month ago. If it now is so that they don’t have anything for Q2.
Then they can safely pocket a big profit. If decision is wrong and oil prices go even higher then continue extending horizon on even higher levels. Think few would complain about this strategy even if some potential is taken of.
Seems they hedge less and less , just some for survival. Don’t know why they hired this position for hedging a year ago or so
Work in progress here 2019 debt updated today, before it was 100 mill more See they removed FCF today, so I assume other figures will be updated over next days/weeks After March full year report they usually add one more year FC 2022