Member Info for TalygarnTom

It looks like this is the project.
https://www.facebook.com/permalink.php?id=184635674902472&story_fbid=2544955442203805

https://youtu.be/hoGlLL0UmpQ

https://twitter.com/LithiumIonBull/status/1241871816764907520?s=20

Thanks for this link Perkylad. Climate led media sources have been trying to convince us of this for years but the reality on the ground is not consistent with what they are saying. Take Japan for example. The article says "In Japan, where Australia sells nearly half its exported thermal coal, wind power was found to cost less than new coal plants and was expected to be cheaper than existing coal by 2028. Solar power in Japan was forecast to be a better option than new coal by 2023 and existing coal by 2026." Then compare that with the three graphs here bottom right. https://en.wikipedia.org/wiki/Solar_power_in_Japan
They have rushed out and installed capacity, the prices have then tumbled so the additional annual install rate is falling. So the annual additional solar consumption as a percentage of total output is running at less than 1% per annum. Couple that with a falling coal price and I think the reality is that companies like OPG (when debt free) will be competitive.

Says the man who sold up.

Moss Bros. https://www.retailgazette.co.uk/blog/2020/03/crew-clothing-owner-take-moss-bros-private-via-acquisition-deal/

India needs two things to grow and increase energy demand. A low cost of capital and low oil prices. They now have both.

https://twitter.com/RodneyHooper13/status/1236054474617208838?s=20

I find the most recent HY20 presentation very helpful because it highlights clearly the level of value that they are adding for shareholders (see p.7) It would be nice to see a decent progressive dividend policy adopted but paying down the debt first is the right approach. http://www.opgpower.com/investors/presentations/

To think that we can now pay less than the mighty Ganfeng for our Bacanora shares. What will we think looking back on this in 5 years time?

There is a discussion with Dmitri Tsvetkov, chief financial officer at OPG, in Dec 18 in which he talks about returning to a cash dividend which clearly they have not yet done so my assumption is that the solar assets have become part of the deleveraging efforts. He also talks about the market for solar being competitive with low tariffs and it would appear that they get a much better return on investment from Chennai so all investment seems to be focused there for the medium term.
https://www.proactiveinvestors.co.uk/companies/news/311403/opg-power-ventures-fired-up-and-focused-on-profitable-chennai-project-11403.html

This article of 24 Sep 2018 highlights the original reasons for the scrip dividend. https://www.proactiveinvestors.co.uk/companies/news/205514/opg-power-draws-line-under-gujarat-power-station-to-focus-on-chennai-and-solar-205514.html

https://www.livemint.com/industry/energy/solar-power-is-beginning-to-eclipse-fossil-fuels-11582179606841.html

I am quite a new investor in OPG but I'm happy to share my view on this point about the scrip dividend, the answer to which is no doubt buried in the annual report or an RNS at some point. However, the interim results had the following comments:

"Two years ago the board adopted a strategy to focus on our profitable, long-life assets in Chennai and to deleverage in order to deliver growth in shareholders' equity by the transfer of value from debtholders to investors,” Arvind Gupta, OPG chairman said in a statement. “This process continued successfully during the first half of this financial year.”

Debt is more expensive in developing countries and the growth potential is limited by operating conditions and tariffs therefore the best way the company can improve shareholder returns over the long term are to preserve their cash to pay down the debt. Once that debt is repaid they can then allocate free cash to the payment of a cash dividend. Thus the "transfer of value from debtholders to investors".

They just can't help themselves can they.

https://steamdb.info/app/703080/graphs/

https://www.bunkerspot.com/latest-news/47579-global-maersk-reports-51-rise-in-annual-bunker-costs

https://twitter.com/GregVous/status/1230785337846308864?s=20

"During an investor call at yesterday’s 2019 results briefing, Maersk, previously in the anti-scrubber camp, revealed it is now signed up to a large number of exhaust gas cleaning systems."

https://splash247.com/maersk-makes-late-scrubber-run-set-to-increase-hfo-use-by-150/

If this information is correct the top two holdings in FFWD account for nearly 65%. That’s pretty high conviction stuff and I would need to have a very good understanding of those two companies.

https://citywire.co.uk/investment_trust_insider/investment-trusts/investment-trust-factsheet.aspx?FundID=4123

A lot of fund’s saw significant withdrawals, up to 10%, from June onwards last year spooked by a combination of Woodford fallout and Brexit jitters. The off the back of the initial Woodford reports Train was hit with liquidity concerns. Personally, I think it’s all a blip and as long as the NAV continues to perform this trust is as good as any. https://www.trustnet.com/news/7461001/nick-train-brushes-off-liquidity-concerns-after-ratings-downgrade