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Still a concern, its a big number..........
Discussions to defer 2020 IMI equity contribution are continuing
Hi chrisengland, Did you ask on the IMI payment schedule also?
//I wonder if they will announce settlement of the deferred 2020 payment on the stake in IMI? It was mentioned that discussions were underway to defer, ref. RNS on the 13th May 2020 but no mention since. Will they pay or keep stating how much net cash they have and hope this disappears? It’s a USD 25.6M hit that will make a difference. The RNS on the 22nd July boasts of an increase to the bank balance of USD 28.9M, but is it real or fantasy? Might only be USD 3.3M as debts must be paid at some point. Does anyone know???//
Would all appreciate your take on this as they have been silent on that for a while now. Thank you.
Hi chrisengland, Do you know anything on the IMI payment?
//I wonder if they will announce settlement of the deferred 2020 payment on the stake in IMI? It was mentioned that discussions were underway to defer, ref. RNS on the 13th May 2020 but no mention since. Will they pay or keep stating how much net cash they have and hope this disappears? It’s a USD 25.6M hit that will make a difference. The RNS on the 22nd July boasts of an increase to the bank balance of USD 28.9M, but is it real or fantasy? Might only be USD 3.3M as debts must be paid at some point. Does anyone know???//
I wonder if they will announce settlement of the deferred 2020 payment on the stake in IMI? It was mentioned that discussions were underway to defer, ref. RNS on the 13th May 2020 but no mention since. Will they pay or keep stating how much net cash they have and hope this disappears? It’s a USD 25.6M hit that will make a difference. The RNS on the 22nd July boasts of an increase to the bank balance of USD 28.9M, but is it real or fantasy? Might only be USD 3.3M as debts must be paid at some point. Does anyone know???
ihb1982. They are small jobs at low margin in the big picture which will struggle to cover the company overhead, it must be massive.
If you calculate the original contract value of EA1 against the Moray Firth, straight away the figures don’t add up, just an observation, maybe with all the lessons learned from EA1, they have or will improve.
Nothing nasty here, just observations.
doolin79, wise words indeed, let’s see what the RNS reveals.
The new management at the helm have been in place for approximately 24 months now, not a lot to report on the award front so not so sure they do actually know what they are doing, a few small jobs lately which if you look at the EA1 project versus the Moray Firth it doesn’t add up & TBH, new build Rigs are cheap as chips as there is many to choose from, but who will be suppling the equipment? That makes up a large percentage of the cost of the rig (as we all know) so who has the lions share of that margin, Saudi or LAM? Won’t find that out but the margin either way won’t pay for the huge corporate overhead currently in place.
Bring on the RNS.
Unless there is some financial wizardry at work, it will be the third scenario that will be revealed. Not sure about the company going down the pan but new management at the helm that know what they are doing in the market is required.
Final post to @tonynorstrom as it’s not sinking in. Did the September statement include the current issues being experienced on EA1, project on hold due to fabrication issues? Will there be further costs associated with rework and has additional LDs been waived? The above issue is well known and no update provided. This is in the public domain (DYOR) and not insider information as various comments elude to. Please prove me wrong. Wish everyone good luck for 2019.
@tonynorstrom1. That’s your opinion, only my personal view, maybe a bit close to the bone for some to stomach. Let’s wait and see, time will tell and I really don’t care about the SP, some that hold will be. Up or down, I really don’t care.
I fear that they are playing a dangerous game by making yet another press release today on a project that will generate very little revenue, couple this with the previous one that will take up a lot of real estate, again for very little revenue. These will struggle to cover their overhead based on the excessive corporate structure in place for a UAE fabricator. As doolin79 indicates, it’s a waiting game but feel that their management has waited far too long to indicate the real losses from the botched EA1 job. The full cost of this project will shock a lot of people, there won’t be a lot left in the bank after that. New management but making the same mistakes as the previous management, no lessons learned by the board here. Just my thoughts, but watch out.
Does anyone know the total losses for the Scottish Power project yet?
Anyone holding stock in Shelf?
Fill you boots gentlemen, the orders are coming. Next 2 months and back up with the best of them.
Valid point on Whitbread, but Chairman is new to LAM. Whitbread was the LAM driver prior to McCue taking over and creating the MESS experienced now. Whitbread will build the company up in due course and will (when his job is done and got LAM back on track) appoint a better CEO than the last one. Be patient all, give it time. ATB.
Downthepit. So far away with your statements and continual badgering you are obviously enjoying a few beers when posting. Bonum. Not as yet, but there is new management in and cards are not completely on the table, they have nothing to lose and will declare all and any losses to make a fresh start and rightly so, old (inept) management out, old school (Peter Whitbread) in. He and the new chairman will clear the air, ensure all losses are declared (why cover anything up, when you can blame the old management) and build LAM back up. As my earlier post, don't look short term, stay for the long term as this will be a winner in a few years if you have the determination to stick it out. GLA.
Plenty to mull over there. Good luck and enjoy the nice weather. GLA.
I do not think there is enough losses to sink this middle east institution. They have had a rough time lately, but they will survive and bounce back given time. There will be plenty of support in the background if the door looks like it is slamming shut. Good luck to all and keep looking up.
Correct mate, all the best and good luck.
You obviously know the industry and the issues experienced by LAM. Your outlook is very accurate and I concur that short term (due to more bad news which will be released) this price will not reach the quid that many expect, however, get this financial year behind them, a change in the management (which is IMHO long overdue), get back to core business, doing what they do best and not taking on any big design risks (windcarriers), they will get back on track and move back up to a couple of quid by the end of 2013. Still a good opportunity if you are in for the long term. GLA.
Check back the 'hand full of posts', were they accurate or not? Few posts agreed, but very accurate. I think you will be eating more pie soon. DYOR.