Member Info for PUTUP

"You're not buying that are you P? "

Well I hope he's right even if I'm skeptical. At current levels, I'm neither a buyer or seller and so will wait and see. Odds on he's FoS but it would be a pleasant surprise if not. The problem with false dawn ramps is it draws people in only to disillusion them. They exit and never return. Real, positive news will send the stock sustainably higher. Anything else won't.

I sure hope he's right. We will know soon enough.

Your dumbest post yet

"You're really struggling with this P&L/Balance Sheet argument that I've made, aren't you PUTUP? "

No, I'm not. But there's no reasoning with stupid.

(I normally give you more credit. FH1, on the other hand, hasn't - on any occasion - displayed any intelligence.)

I suggest you give the company a call and discuss it with them. 0207 514 1400

GKP get to keep what they're due from current production (as calculated pursuant to the PSC). Well, duh! But they're no longer receiving or keeping anything more than that. (They did for a little while, but had to give it back. In oil. Past tense. All of this happened post June 30 FWIW despite your obsession with the accounts.) The receivable is not being (and has not) offset by other retained amounts and the full balance of $151m remains outstanding. The accountants have made them take an impairment in the June accounts given amounts are so long overdue. It's a non-cash provision. Whip-dee- doo. The provision doesn't affect the company's worth in any way. The market is WAY ahead of the accountants and their provisioning. It has already written off the value of the receivable to zero.

We all hope they'll eventually recover the full $151m in cash (at which time any accounting impairments will be reversed) and as the likelihood of them doing so increases, the market will give more credit for the receivable. Until then try to keep up on the basics.

"Let's not pay back KRG money that they don't deserve for breaking their contractual obligations. Again."

GKP doesn't have any of KRG's money. And is not getting any.

It's not for me to apologise for facts and the occasional figures hurting your head.

No. Stray haș tied herself up in knots and is desperately trying to wriggle free.

I have no problem with the 6m accounts, although their relevance to this topic is immaterial. They do, however, reflect my the facts. $151m is owed. No one is disputing this. The fact that a non-cash charge, ie a partial write-off, of that receivable has been taken bears zero influence on whether the $151m has or will be recovered. Cash is king. A non-cash impairment isn't. Straycat is still getting her knickers in a twist over non-cash items in the P&L. Not the first time.

"Theatre of conflict" waffle waffle. JH tried it on and lost. Oh well it was certainly worth a crack Nigel. (A fantastic Cheezels ad.)

What is the offset?

You can't answer this question.

Once again, there is nothing that JH has been able to retain to whittle down the receivable. He was successful for a short while to the tune of $8m, but that has now been repaid in free oil. Good on him for trying, but he hasn't recovered any of the $151m and there is no mechanism for doing so other than giving the KRG grace to pay once exports restart.

The half-year results announcement got a lot of people excited when they saw the company retaining gross field sales and hence owing $8m to the KRG. Anfil was flogging this mantra heavily. "Great" they hailed "we have a mechanism to recover the $151m owed. We can continue to collect and retain more than we are due and use that excess to offset the $151m." Well that overly optimistic view has been shown to be just that. It's been shut down. It doesn't continue. There is no longer an "offset." This was, depending on the extent to which one got excited about the gross sales retention and its ability to recover the $151m, the single biggest disappointment in the latest announcement. The good news was they at least hung onto the $8m although simply they 'paid' for that via lost revenue from oil sales. (The KRG was allowed to off-take oil without payment to GKP to offset this sum.) What they would otherwise have been due from production sales was used to offset the $8m. There, the offset went the other way.

"still more buys then sells reported"

"Just look at the number of buys "

"when there are more buys then sells"

Every one of them matched with a sell.

This is dipsh*t 101.

And when it goes against you, you feel the need to blame a big bad actor such as the "MMs" (woo-ha-ha) when a large proportion of trading is just retail churn. Get a grip.

*over-collection

Straycat what's up with you today? You're way off base and wrong.

"The simple truth is we are owed $151m NET by the KRG"

Yes, for their share of production for the months of Oct '22 - Mar '23 as calculated pursuant to the PSC. Yes, they took a non-cash impairment to that receivable in the accounts.

"All I’m arguing is that offset is a simple remedy."

What offset?

Yes, they're still owed $151m. I've never said otherwise. I want them to get the full $151m back. Rather, others have believed that GKP could continue to keep gross field sales and use the excess over their entitlement to whittle off the the receivables balance.

For a short while they were collecting and retaining more than their share. As a result, they owed the KRG $8m for that overcorrection and retention.

This is no longer the case. The $8m debt to the KRG has been settled by allowing them to take oil. GKP no longer owe them the $8m. The KRG still owe GKP $151m (even if this is carried in the books at a lower value because of the non-cash impairment taken). (I care about cash.)

GKP are no longer retaining gross field sales. They are receiving only the Contractor share some of which is owed to MOL which they pay monthly. There is NOTHING extra to retain and offset against the $151m receivable. They're only getting their share and the $151m isn't being reduced by retention of other funds.

I had warned from the outset that relying on retention of gross field sales to whittle off the receivable was likely over-optimistic. It has proven to be the case.

You've gone completely off your rocker. Get a grip. FH1 clearly has no clue either. Never has.

"and offset against year old debt (!)"

Why would they offset something they're entitled to against something they're owed? They're due both.

The only response to that is a "Huh?" or a "Duh!". You choose. :)

"and not relinquish it "

Not relinquish what exactly? They only get the Contractor share paid to them.

Have you looked at the report Deloitte does for the KRG? Note 10 (the link to this report has been posted here before)

Straycat

"They should keep the advance payments and offset against year old debt (!) until there is some equilibrium restored. . "

Now they are only now being for the Contractor's share, as calculated per the PSC. GKP then pay MOL their share.

The $8m that was owed to the KRG has been settled in off-take of oil. So they keep the $8m which is good.

Cash balances haven't changed materially since end of August.

$151 million remains owed to GKP by the KRG. (I expect this to be paid only in installments once the pipeline is reopened for export sales.)

Those are the facts (except in parentheses where I have noted my expectation).

"@PUTUP

You are correct."

Yes I know I am. And likely for the same reason you do. ;)

Have they received interest on previous receivables from the KRG? No.

If you're not collecting gross field sales you're not in any strong position on the KRG receivable. They might have been able to pull this off a little with trucking sales but I wouldn't assume they're doing this when selling via the pipe to a local (aka KRG) refinery. The RNS explicitly states they're being paid their 36% share. Inferring they are being paid more than that is a leap.

"they can send locals to KRG to get paid"

And the international contractors with whom GKP needs to maintain a good relationship?

Ramp it up boys! TSSZ and Roxy are leading the way (and neither have much of a clue re fundamentals). Just make sure it's sustaining guys. ('America has been open' for over three hours for anyone trading European stocks... duh.)

As I said earlier, no surprise on local sales volumes and price. No further news regarding pipeline reopening. In the interim, we just have a bunch of people trying to pump the stock. Plus ca change...

"for its net entitlement"

I think your interpretation is a big leap of faith. The point is we don't know for sure because it wasn't disclosed. However, absent more info I'd assume that the reason they didn't provide an update on cash balances is because they haven't changed materially. Else why not provide the 'good news'? Any net cash in will likely be going to meet their payables and my bet is amounts owed to the KRG haven't changed materially either i.e. they're not retaining 100% of field sales. Otherwise the disclosure would have to be worded differently. You're assuming the KRG refinery is paying 100% of field sales to GKP. I think that's a bold assumption.

Then you will see the big change in payables between year end '22 and June 30 23 as the company stopped paying people in order to conserve cash. 'Financial flexibility' comes when you pay those payables. Nothing to do with 2H capex.