These KRG payments are a nightmare, even with deferred revenue contracts from majors like Glencore they dont seem to be able to pay the oil companies! Strange that it takes so long, because in the MNR monthly reports it states that an amount has been allocated to OCs. Also Genel shouts but until sofar doesnt deliver.....how about that Equity stake in mid/up- stream projects gas business. Although they stated that an equity partner is expected to be presented in 2016, they should run a little harder with this underperformance of the last year or so. In latest presentation it states that the field development contract is expected to be awarded in Q2. Also the Pre-FEED expected to be completed in H1.......so we have another 2 weeks! If it stays silent it doesnt give a picture of confidence! In my opinion, one of the only reasons the stock still holds without the prior mentioned arguments is the fact that this Turkish energy company bought a stake......we know how it goes in these countries....does this party know something we as regular amateurs dont know?
Market Cap has decreased to $290m, vs. $450-460m of cash on the balance sheet......they should do buybacks at these levels, as they are stating that they are currently producing cashflow break-even due to the new payment mechanism! Ow wait....with todays announcement it will be even more difficult to find funding for the gas project, so unfortunately buybacks and dividends are not to be expected!
There must be coming a rather good story during the results presentation, as every minor disappointment will be a reason for more holders to sell. I think it is also curious that this reservoir adjustment news is coming today, while coming thursday is the day that the results are supposed to be presented. Looking at the volumes, some big players are also buying around the current levels op 75-80p, what a coincidence that some big players are adding up at current levels, helped by the announcement today! What happens at that company and with this share is some nice food for UK lawyers......remember what happened with the reserve scandal at Shell, lawsuits followed for the next 10years!
wow somebody is selling this thing aggressively!
Hayward is a crook, he was also sailing with a big smile during the big BP oil spill. He was laughing during the call today as well, the arrogance is just unbelievable. Although I would find it quite funny as well if I would have sold 350k shares for well over 300p a piece!
The selling of Sepil and Hayward now makes sense.....what a bunch of crooks, unbelievable......comes in handy that CFO Ben is ex-JPM whom are continuing to rate Genel as overweight....unbelievable how hard all holders on the BB here are f.cked in the asssssssss
Bunch of crooks.......credibility is gone and this reserve adjustment unfortunately is a deathblow to the company. It will take years to restore credibility and create some value, no wonder there is a big seller on 90p that is pushing the share down! Its just unbelievable.......
So unfortunately I am getting less bullish everyday, I can now only hope!!! I hope that international support will re-emerge, maybe after the American elections after which the Americans will finally support the Kurds financially! Another hope due to rumors is that Sepil is forced to sell his holdings in Genel as he will be involved in the company that will run the gas Midco, but again we will have to wait and see what happens with the gas project if the POO stays lower for longer!!
I was really bullish on this stock due the value of its assets, and the interesting geographic position to gas-hungry Turkey. I was never worried about IS (airbombings by US started when IS came to close to oil reservoirs), nor about the tensions between Turkey and the PKK (The turks might hate the Kurds but they are not stupid, Kurdish gas is almost 3x as cheap as Russian gas and will provide more flexibility for the Turks. Furthermore Erdogan and his family make a lot of money through this relationship). However, with the oil prices staying low for a long time to come (unless supply disruptions in Middle east push POO up again) due to the American shaleproducers (whom will use every bounce in POO to hedge production), the KRG simply cannot pay the oil companies. Also, it seems international support for the Kurds is waning after lots of negative media coverage; Apparantly weapons delivered by the Germans were being put up for sale in local Kurdish markets, entire villages were being burned down after IS rebels were forced out of the villages and this lead to a lot of criticism from the likes of Amnesty, etc! Furthermore the political problems with the presidency in Kurdistan dont help. Therefore you see that every bounce in the share price is being used to sell; when the POO goes down so goes Genel, but when the POO goes up the shareprice of Genel doesnt!
Re: Joined up The price action in this share has been very depressing for months now, because every bit of strength in the shareprice is being used to dump stock in the market. This is already going on for a long time, and after a spike up the price is getting pushed down with very little volume. There just arent a lot of institutional parties that will buy a share like this, so I agree with The Milipede that when a big holder wants to sell, it takes a lot of time and probably the shares get sold the BB readers here 