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$100m in cash collateral to be released also as soon as some sort of agreement with banks and lenders.
Advance payment from ADNOC Habshan project to be received also.
It's a shame that they didn't mention regarding legacy project closeout.
Once again, Petrofac's liquidity is above the covenant limit. Otherwise there would have been an RNS to indicate breach of covenant (material news).
But with the advance payment and legacy payments coming in, this company is free from risk for at least another 3 months.
So far in Q1/24, we know that Ain Tsila and Majnoon CPF 2 has been completed.
Ain Tsila:
Value of Contract: $1b
Final payment: Approximately $80-100m
Majnoon CPF2:
Value of Contract: $370m
Final payment: $27.5m
That's a total of $107.5m - $127.5m in legacy payments to be received.
GLA.
"The Iraqi cabinet has approved what it described as a "final settlement" between the Ministry of Oil / Basra Oil Company (BOC) and Petrofac.
The settlement reduces the amount to be paid for the second central processing plant (CPF2) in the Majnoon oil field from $30 million to $27.5 million."
Seekingalpha,
Suggest you reread the article you just posted.
https://nation.africa/kenya/business/we-can-t-break-even-at-less-than-25-a-barrel-says-tullow--1169290
Scrodinger,
No, my assessment is based on the revised 120k FDP.
The problem with the asset is that it becomes more uneconomical each year that passes.
@gogadet,
Also, expect CAPEX to be around $15-20m+ this year for Kenya.
"2024 capital expenditure of c.$250 million with approximately 60% allocated to Jubilee and 25% to non-operated assets."
Wonder how the remaining 15% are split ($37.5m).
In 2021, the breakeven for Kenya development was $50-55/barrel, should FID had been made by the end of 2021.
Today, it's more like $60-65+/barrel. With increasing break even, the development of Kenya is becoming more and more uneconomical. Which is why Total and Africa Oil relinquished their stakes.
Now, Tullow having 100% stake in Kenya is simply burning Capex on trying to find a strategic partner (which TLW said will be completed in 2023 - to date nothing).
Maybe Tullow should go back to drilling in areas surrounding Turkana to find more oil, to make this development worthwhile.
Supercharger,
Yes overtime, it will be profitable.
However currently, it's a cash burn.
That's why Carlyle and Cyrus have suggested a D4E. They are injecting £32m into the airport for OVER 70% of the business and reducing Esken stake to less than 30%.
Actual figures have yet to be released by the company, so there is hope. But very little.
Supercharger,
Unfortunately, the problem is liquidity and cash requirements for London Southend Airport. This is diminishing quickly and Esken needs to find a way to find this.
Carlyle and Cyrus just offered a funding solution at the cost of shareholders.
Esken currently has no $$ to fight billion dollar funds in court, nor do they have money for the continual operation of London Southend Airport.
So in a bit of a predicament.
With recent news, I'm sure a lot of shareholders would have exited.
Only way out of this is:
- if the funding proposal by Carlyle/Cyrus is somewhat positive for shareholders
- Takeover by a separate entity.
Time is running out.