El Kel
10 Apr 2015
Re: Is this fogl or fkl?? If they had put something along the lines of, 'The board have decided that in suspending the dividend the money saved can in the medium to long term better serve both the company and investor by being re invested into the business, by way of etc, etc.---------- Hello pondThat would have been more honest but we'll not hold our breath, eh?!If they really wanted to invest in something over and above current investment (they've invested £8m in the FIs over the past 5 years), then imo the proper thing to do would be to have a rights issue.I can only assume that they're taking a weasel and sly move to retain cash, without doing sweet fa, by sneaking under the umbrella of Argentina's plastic sabre rattling and other energy sector companies cutting and cessation of dividends, eg, Centrica.Maybe fkl are going to fund Kirchner's botox treatments to garner favour as she heads into Argentina's elections later this year...
pond1
10 Apr 2015
Re: Is this fogl or fkl?? To me it looks like all the political spin doctors in the UK had a hand in the wording of today's RNS.It always annoys me when a company treats people like fools, making statements such as, 'The board states that they believe this more focused long term approach (no dividend) will have more appeal for existing and prospective investors and offer much greater shareholder liquidity.' and expect investors to believe such nonsense.If they had put something along the lines of, 'The board have decided that in suspending the dividend the money saved can in the medium to long term better serve both the company and investor by being re invested into the business, by way of etc, etc.To my mind there is a subtle but important difference in the meaning.
El Kel
10 Apr 2015
Is this fogl or fkl?? The fkl website proudly and boldly states on its website home page;"Trading Update Year ended 31 March 2015The Group has delivered another robust trading performance, in line with expectations, and closes the year with a strong balance sheet and a healthy liquidity position."Only THREE weeks ago a news release stated;"Falkland Islands Holdings…has sold 7.825m shares in Falkland Oil & Gas ("FOGL" ) for £2.3m…This has generated a profit of £0.7m for the Group.This latest sale of shares in FOGL will augment the Group's cash resources for further investment in its future growth."Now we have;"Trading in the second half was in line with expectations…there has been a continued strong performance from the Falkland Islands Company ("FIC"
and as expected, a lower level of activity, compared to last year, at the Group's art handling and logistics business Momart, following its exceptional prior year performance. Trading at the Group's passenger ferry business ("PHFC" was in line with the prior year.The Group's overall trading performance for the year to 31 March 2015 is expected to show a small decrease in underlying pre-tax profits (before amortisation and non-trading items) compared to the record levels seen in the prior year."Translation - overall performance slightly down but only because last year was so good. Therefore, despite the slight decrease, we are still a very clever and deserving bunch of directors.You would be excused for thinking everything is tickety boo.Wrt to the vital dividend strategy, I am gobsmacked.The company has;- received a recent exceptional profit from fogl shares sale- results in line with expectation- a strong balance sheet- a healthy liquidity positionAnd what does the bod do? Cease dividend payments! Ffs.Their words are truly of world class weasel status."The Board is keen to focus on a long term growth strategy to fully develop the potential of its existing businesses in both the Falklands and the UK and believes that a policy of re-investing profits to support accelerated growth will yield long term benefits for shareholders."No sh 1t Sherlock. "It is the Board's considered view that the Group can best take full advantage of existing and emerging opportunities by a policy of maximising the reinvestment of profits and suspending dividend payments in order to accumulate resources to build a much more substantial group with greater critical mass in its respective markets. We believe this more focused long term approach will have more appeal for existing and prospective investors and offer much greater shareholder liquidity. The Board is confident that this new approach and focus will lead to more certain capital growth and greater overall returns for shareholders in the long term. In accordance with this increased focus on investment and growth, the Board has decided to cease dividend payments until further notice." The Group had cash balances of approximately £7.3 million and bank borrowings of £0.7 million and Edmund Rowland grandly announces;"The Group has delivered another robust trading performance, in line with expectations, and closes the year with a strong balance sheet…".Another ROBUST trading performance, huh?So why the need to suspend dividends until 'further notice'?With fkl's div calendar of both payments near the end of the year, this is looking like no dividend payments until end 2016.In the meantime, we are not given any real info on what they are going to do other than "…accumulate resources to build a much more substantial group…"W. T F.I am absolutely gutted by this slap in the face for investors.We may as well be in fogl if it's just a 100 bagger jump in capital value that's being sought as opposed to proper investment.
corriedog
10 Apr 2015
Re: Pre close statement. Market cap of £30m, net tangible assets of £25m including £7m net cash, pre tax recurring profit of £3+m, investment in boats made, immediate return on any FIH investment. Makes this a decent business to use for buy and build - if the management get it right. Rowland owns 20% so he has a big incentive.Sale of FOGL shares now makes sense. This will only become a multi bagger on increasing EPS which is a better strategy than FOGL going to £3 per share.Only real disappointment is cancelling the dividend. That is a mistake. They should have cut it to £600k to yield 2%.I hope that Rowland doesn't get his 'dividend' in the form of fat remuneration.Rowland paid 320p for his shares.
TX2
10 Apr 2015
Re: Pre close statement. I feel that is correct Blanketstacker,the share is likely to have few attractions for the type of private investor that has previously purchased and the downgrade is deserved particularly as the company has chosen not to enlarge on its plans.Avoid for the present (and I write as a holder).
Blanketstacker
10 Apr 2015
Re: Pre close statement. A strange reaction given they have c£17m in the bank and no real debt. I can see this hitting the 230s eventually.
pond1
10 Apr 2015
Pre close statement. Pre close statement.Dividend suspended, and the cash put back into the company for future development.The board states that they believe this more focused long term approach will have more appeal for existing and prospective investors and offer much greater shareholder liquidity.Where this is a good idea or not, I am sure the sp will quickly (go down) reflecting what investors think. It's the dividend that has kept many still invested in FKL!Will need to see more detail in the results to decide.
sunsandandoil
03 Apr 2015
Re: Unexpected helping hand? Hi Ekati.......yes its one sentence about 8 paragraphs in....Michael Fallon stated " the british government would invest in harbour facIlities and fuel infrastructure" just after the bit about updating the Rapier Missiles. ..Big surprise in Questor giving his approval to Fkl.......as a safe way to invest in the Falklands Boom.
Ekati
03 Apr 2015
Re: Unexpected helping hand? Was that the right link, sunsandandoil?
sunsandandoil
03 Apr 2015
Another unexpected helping hand!!!! Questor!!!!!............real turn up for the books.[link]
sunsandandoil
02 Apr 2015
Unexpected helping hand? Looks like FIG might have help with the harbour!!![link]
sunsandandoil
02 Apr 2015
Pretty much a slow....... boat to china....this one. Congratulations to Fogl on the Discovery. This will impact Fkl down the line........although not in such a volatile way as the oilies....slow and sure.....not many games to play with only 12.5M shares. Here comes the sun..... (Oh somebody else uses that). GLA
pond1
02 Apr 2015
RNS re Fogl oil discovery Strange that I am the first to post this morning, when the above discovery must surely have a huge impact on FKL, not so much for the short term but definitely for the mid to long term.Infrastructure and supply will always follow those making the big oil news.
El Kel
30 Mar 2015
Re: Ridiculous. If the sp drops any further then it will be a good buying op.---------- ------After further consideration, I don't reckon that it will drop any further, or if it does, it will be by an insignificant amount.Bought more last Fri.
El Kel
26 Mar 2015
Re: Ridiculous. there is a higher chance of drill failure than success IMO whatever the so called experts over on FOGL and RKH will tell you ---------- ---------- -------Good points, Mill.Fkl has a relatively small market cap circa £35m so there isn't really sufficient room for the company to be risking too much.They have made a profit of £0.7m and are are retaining 5m fogl shares so would have a decent windfall if the current drilling programme finds anything worthwhile.At today's sp we have a yield of 4.1% which is fine by me.If the sp drops any further then it will be a good buying op.
