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HighYeld. May be I misunderstand something? From todays MDA page 9: "Based on the Company�s internal estimates of potential gas sales volumes, the $20.59 million receivable as at September 30, 2017 is expected to be fully recovered by Q4 2018."
Wentworth Resources As I found out when meeting with WRL in Cape Town recently, things are really beginning to pick up for the company and I suspect that this may be more than just one to watch. Today they provide 3Q results which in themselves are relatively meaningless but production numbers are positive and the direction is important. 60 MMscf/d from Mnazi Bay in Tanzania is the strongest in the company�s history and it puts them in a �dominant� position in the Tanzanian market place which has significant demand from power generators and industrial users. In a market that has a reduced supply of gas by peers, yet has demand coming through from K-2 and the Dangote Cement plant (which should add between 10-60 MMscf/d by the end of next year) the economics stack up pretty well. Regarding getting paid things are also looking up, admittedly receivables have �stabilised at 4-5 months� but TPDC are paying more and overall payments in the quarter were $5.18m and indeed a payment of $2.6m has recently been initiated by TPDC for the October invoice. Speaking with Vice President, Corporate Development, Katherine Roe today I got the impression that the movement is in the right direction and that the TPDC were making payments more regularly and of a bigger size than before. Re the company�s oil and gas concession in Mozambique things are also moving at a pace with drilling planned at Tembo-2 for 2Q 2018. I wrote in detail about this whilst in Cape Town but the prospects here are significant and with the distinct possibility of one or more industry partners joining WRL there is further upside potential. 2018 looks like being a landmark year for Wentworth and I for one will be watching most carefully.
Perhaps Jergen has made a recording?
Josik, in your spreadsheet under investments you have included reduction in long-term receivables also in 2018. I do not think that is correct. The book value of the long-term part of the TPDC receivable is 4.6 MUSD as of 30 September 2017 and most part of it will be transferred to short-term (to be paid within 12 months) in Q4. The Government long-term receivable with a book value of 5.3 MUSD is still a bit more uncertain regarding timing of repayment.
Mick2020, now you are getting a bit overexcited and sound almost like an AEX shareholder. The payments from TPDC include repayments of outstanding receivables and should not be included when talking about net profits. However, if you say cash-flow, then I would agree with you.
From the Norwegian forum it was annonunced from someone listen to the conference call. The rate of 73 MMscf/d seems anyway fair regarding the problems Aminex and partners are facing these days.
Kingen, that is amazing news!! Was that mentioned during the conference call? I dialled in but didn't pick that up (the connection wasn't great though)
Yesterday production and delivery was 73 MMscf/d WRL announced today at 3Q. This probably due to the fact that they have been taking over Aminex & co. production lately. I assume they will keep at leat this delivery until Dangote and Kiyerenzi 2 will start taking gas very soon:)
Here's my updated spreadsheet / model re. estimated cash flow. https://www.dropbox.com/s/22k9qo12homr5bs/WRL-Cash_Flow_per_quarter_2016-2018-Estimates_per_Nov_2017.xlsx
"At the date of the press release TPDC has initiated payment for the October 2017 gas sales invoice totalling $2.6 million cash net to Wentworth" If this would remain the same for the whole year, annual income would be $31.2 mln. With monthly costs of ca. $1 mln (currently), annual net profit is ca. $19.2 mln. Assuming $7 mln debt repayment, cash build up is ca. 12.2 mln. Very, very impressive for a company with a market cap of only $69 mln!! Oh, and that is only at 60 MMscf/d... At 80 MMscf/d, profit would be $25.6 mln, with a cash increase of $18.6 mln At 130 MMscf/d profit would be $41.6 mln, with a cash increase of $35.6 mln :-)
I think that would be too much information in one day. Right now they are discussing if Solo's toxic financing is positive for AEX or not.
LOL...too funny Alph! In the absence of any news, it is only a matter of time before the AEX bubble will burst. Quite amazing really how long it has lasted. Will be interesting to watch how their BOD will try to spin it!
HighYield: I m convinced that this information would be highly appreciated if you also posted it on the other forum. There can never be too much information.. In the meantime, I'll just prepare some popcorn.
The reported numbers were very good and the outlook for coming quarters is ever better. I made a quick comparison between WRL and AEX. WRL's Q3 numbers almost match AEX's 1H, when production at KN1 were operating without problems. Comparing the valuation on a debt free bases (EV). AEX is valued about twice as high as WRL. Really strange. USD m Q3 2017 6m 2017 WRL Aminex Revenue 4,10 4,59 EBITDA 2,08 2,75 Net result 0,70 1,01 Cash flow from operations2,08 2,50 Change in WC -1,78 -4,91 Capex 1,13 -7,49 Financing -1,90 -2,77 Total Cash flow -0,47 -12,65 Balance sheet Cash 3,36 6,91 Net debt 14,42 -6,91 Working capital 13,48 7,46 Valuation Market cap 69,7 181,0 Net debt 14,4 -6,9 Enterprise value 84,1 174,0 Production, mmscf/d 59,9 15,00 Share of production 32 % 57 % Net production, mmscf/d 19,17 8,62
Very solid Q3 results, with record production levels and a net profit of $0.7 mln. Slightly higher than expected even. The best news is however that Q4 should be even better still.... with bigger invoices paid, lower debt re-payments and perhaps a further increase in production. Q1 should top that once again, with even higher production, zero debt re-payment scheduled and again, larger invoiced paid! WRL is looking really good right now. Production is ramping up quickly now and the company is starting to deliver. A real cash machine in 2018? Highly undervalued today!
We knew about the lost in H1, Q3 shows a profit and debt repayment. You are commenting on the old news, and ignore the good current news. Strange that.
Yep they made a loss in the first 3 Quarters of the year - yet again! That debt is a killer on top eh!
PRESS RELEASE 1 4 November 2017 Wentworth Resources Limited (Wentworth or the Company) Q3 2017 Financial Statements and MD&A Wentworth Resources Limited, the Oslo Stock Exchange (OSE: WRL) and London Stock Exchange (AIM: WRL) listed independent, East Africa-focused oil&gas company, today announces its results for the quarter and nine months ended 30 September 2017. Financial Gas sales revenue of $4.1 million for the quarter, compared to $2.15 million in Q2 2017 and $2.38 million in Q3 2016. For the first nine months of 2017 revenue was $9.20 million compared to $9.02 million in 2016. * Net profit of $0.7 million and net loss of ($0.95) million for the three and nine month periods of 2017 respectively compared to losses of ($3.59) million and ($4.67) million in 2016 respectively. * Capital expenditures of $0.84 million and $2.14 million for the three and nine month periods respectively compared to $0.97 million and $3.79 million in 2016 respectively. * Cash and cash equivalents on hand of $3.36 million at 30 September 2017 compared with $0.98 million on hand at 31 December 2016. * Working capital of $13.48 million at 30 September 2017 compared to $9.08 million at 30 June 2017 and $4.96 million at 31 December 2016. * At the date of the press release TPDC has initiated payment for the October 2017 gas sales invoice totalling $2.6 million cash net to Wentworth. Operational Tanzania * The level of gas demand has stabilized during 2017 compared to 2016. * The Mnazi Bay field achieved average gross daily gas production of 60 MMscf/d during Q3 2017 and 45 MMscf/d year to date 2017. Full year 2017 production forecast remains within Managements previously guided range of between 40 and 50 MMscf/d. * During the course of 2017 receivables increased but have stabilized at between four and five months outstanding from the main purchaser of Mnazi Bay gas. The Company continues to manage working capital with creditors to match the settlement of obligations with the timing of payments for gas sales. * Cash payments of $5.18 million were received relating to gas sales invoices, net to Wentworth, during Q3. Mozambique * Completed the analysis of the Tembo-1 well drilled in 2014 and the reprocessing of existing 2-D vibroseis seismic data from the Rovuma Onshore Block while continued mapping and interpretation of all existing data. * Continued planning of the drilling activities for an appraisal of the Tembo-1 gas discovery, including designing the appraisal well, selecting a well location, obtaining necessary environmental permits and initiating preliminary procurement activities. * Continued the farm-out process to secure an industry partner to participate in the appraisal programme in advance of drilling the appraisal well in 2018. Geoff Bury, Managing Director, commented: Q3 2017 was the strongest production performance in the Companys history with gross gas sal
Just for the record. My post was stolen from this WRL thread in Norway, posted 06:39 UK time http://forum.hegnar.no/post.asp?id=21868855 ..and I thought Norwegian stock forums were sometimes way too ridiculous. That was before I stumbled into the AEX forum.. :-)
Mick I will never ridicule anyone when they talks facts! But I sure as hell wont stand by while bullshit lies and warped opinions are posted and I don't care where that comes from, you or anybody else. It is only facts that matter to me and not twisted versions to suit the posters needs for one-upmanship Enough said on the subject. I made an offer and it appears you prefer to play games. I find that sad but its your choice. Gl
Drewky I really don't know what is in this guy's head....a poor reflection on a wrl holder / poster...shame...at least we tried.. GL
Drewky, I think you really this forum too seriously. Stop ridiculing people with a different view about AEX and I�m sure you�ll soon see friendlier comments...
You wont give up Mick will you? You get a genuine offer to move forward and you still have to keep it rolling That is sad in my book Discussion for me will always be welcome but not the sort of discussions that are purely aimed at point scoring. Those kind will always get short shrift on any share you care to post Like I've been saying for days this is not a competition :-((
Gaslady, You posted a false statement on the AEX forum, stating that Alph had copied an important piece of news from the AEX forum and copying to the WRL forum, without �even� quoting the source. It was exactly the other way around. Instead of admitting that you made a mistake, you try to ridicule my reply.... and now you take offence at my reply? Look, if you want to continue the bad neighbourly relationship, just go ahead... it is just an investment forum, so I don�t care too much either I have to admit.
"what a pathetic and sad response... It's starting to smell rather rancid on this AEX forum... and it's coming from you now Gaslady! Good luck anyway" To my friendly and welcoming post.....says it all mick - good luck GL