Management team started mentioning " privatization, mergers or takeover" due to extremely undervalued

What Would the Re-Election of Trump Mean for U.S. Energy?


U.S. oil production during Biden’s first year was higher than during either of Trump’s first two years in office. Experts suggest that is it economic factors and pressure from Wall Street that have deterred U.S. oil firms from significantly increasing production, which would likely be the same under another Trump government. While Trump would likely make oil leases more accessible, this would affect long-term oil production rather than immediate output.



The electric vehicles (EV) industry has grown rapidly under the Biden administration, supported by tax breaks and other financial incentives provided under the IRA. The U.S. is currently planning for a major shift away from internal combustion engine (ICE) vehicles to battery electric alternatives, supported by a huge investment in the country’s charging infrastructure. Meanwhile, Trump has regularly stated his opposition to EVs and would likely encourage automakers to slow their shift towards EV production to continue manufacturing ICE vehicles for longer.



https://oilprice.com/Energy/Energy-General/What-Would-the-Re-Election-of-Trump-Mean-for-US-Energy.html

repost my comment on 20/02/2022



agree with you, i3lurker.

Sure will maximize hibiscus in my portfolio if got chance to buy the dip, may be around 80sen. Will wait patiently.

but hibiscus is quite different with Serba in view of :

1) hibiscus is debt free company

2) hibiscus sells North Sabah crude oil to one company only, which is Trafigura and share 50% profit with Petronas. So it is quite difficult to manipulate the accounting.

3) hibiscus sells Anasuria cluster crude oil to one company only, which is BP Oil and share 50% profit with Ping Petroleum. So it is also quite difficult to manipulate the accounting.

4) hibiscus has no asset or project in Middle East. hibiscus got bad experience in Oman business before.

5) hibiscus plans to acquire another asset in Southeast Asia, not in Middle East

6) For next 3 years, hibiscus will be quite busy with Repsol assets, Teal West Project and Marigold Project.

7) hibiscus management team has excellent track record. Shell, Exxon Mobil, Repsol, Petronas, Petrovietnam, BP Oil and Trafigura trust Hibiscus and quite happy to do business with hibiscus

Thanks to Mr Market, got chance to accumulate at RM 2.51. Will hold at least 5 years



I posted this on 16/09/2023

I started INVEST hibiscus since 2020

In May 2020, first bought at range of RM 0.500-0.615 ( before share consolidation), but sold all shares in 23/11/2020 with RM 0.550. ( VERY REGRET NOW)

In July and August 2021, accumulated at range of RM 0.605-0.665, no chances to buy at this price already.

In August and October 2022, accumulated at range of RM 0.815-0.825, no chances to buy at this price already.

In June 2023, accumulated at range of RM 0.895-0.905, no chances to buy at this price already. ( HOPEFULLY STILL GOT CHANCE TO BUY AT THIS RANGE)

As long term investor, I am very happy to growth my wealth with hibiscus. I just target compound growth of 10-12% per year (included dividend). This is my strategy:

Step 1: Save money every month

Step 2: buy low and dont chase high. Hibiscus is cyclical stock. Mr Market sure will give us one or two chances every year to accumulate hibiscus.

Step 3 : Be discipline and repeat Step 1 and Step 2

Comparing Big Oil to Big Tobacco is Ludicrous
By Robert Rapier - May 14, 2024


Now contrast that with Big Oil disappearing from the planet. Tobacco may not have impacted you in the past week, but oil almost certainly did. Odds are that you transported yourself using oil. That’s especially true if you were on an airplane. If you bought goods at a store, they were almost certainly brought there using oil.


Even today, after decades of research into alternatives, there is no affordable, scalable alternative that can replace petroleum. Every country from Iceland to Kenya to Brazil to Vietnam runs on oil. Further, no developed economy in the world has figured out a way to run its economy without oil.




https://oilprice.com/Energy/Energy-General/Comparing-Big-Oil-to-Big-Tobacco-is-Ludicrous.html

Why the IEA is Wrong About Peak Oil Demand
By David Messler - May 06, 2024,


In the episode titled, “Everyone is Rich,” Arjun posits what the impact on world energy demand would be if everyone was as energy-rich as the “Lucky,” 1.2 billion people that live in the Western World. More specifically, Arjun asks what it would mean for the other 7 billion people in China, India, Asia, and Africa to have the lifestyle that Americans, Canadians, Europeans, and a few other countries enjoy. The answer he comes up with on an absolute basis, 250 mm BOPD, using a reference point of 10 bbls a year!

Where are we now? The U.S consumes ~22 bbls of oil annually per capita while China consumes 3.7 bbls per capita. Indians use just 1.3 bbls per annum. That’s a pretty wide gap, and as Arjun notes, “economic growth and energy growth are one and the same. You do not get economic growth without adequate energy.”



https://oilprice.com/Energy/Crude-Oil/Why-the-IEA-is-Wrong-About-Peak-Oil-Demand.html

The Energy Sector Is A No-Brainer, but There’s More to Come
- Apr 08, 2024,



Morgan Stanley remains pessimistic about the U.S. stock market overall; however, MS has upgraded energy stocks to overweight from neutral, noting that energy companies have lagged the performance of oil, and the sector remains favorably valued. With a PE ratio of 13.4, the U.S. energy sector is the cheapest of the 11 market sectors.



https://oilprice.com/Energy/Energy-General/The-Energy-Sector-Is-A-No-Brainer-but-Theres-More-to-Come.html

Hibiscus last closing price = RM2.59 ( =RM 1.04 before share consolidation).
Market cap = RM 2085m
Conversion of USD to MRY = RM 4.70
TTM = Trailing Twelve Months

1) Net Profit ( TTM) = RM 71m + RM 123m + RM 154m + RM 102m = RM 450m
2) EBITDA (TTM) = RM 292m + RM 326m + RM 393m + RM 325m = RM 1336m
3) restricted cash = RM 235m
4) Unrestricted cash = RM 892m
5) Total cash = RM 235m + RM 892m = RM 1127m
6) Total debt = RM 406m
7) Net Assets per share = RM 3.56
8) Enterprise Value (EV) = Market Cap + Total debt - Unrestricted cash = RM 2085m + RM 406m - RM 892m = RM 1599m
9) Net 2P reserves (2P) = 60.9MMboe
10) Net cash generated from operating activities ( 1H,FY2024) =RM 559m
11) Estimated Net cash generated from operating activities (FY2024) =RM 559m x 2 = RM 1118m
12) Estimated Capital Expenditures ( FY2024) = USD 202m x 4.70 = RM 949.4m
13) Estimated Capital Expenditures ( FY2025) = USD 207m x 4.70 = RM 972.9m


Valuation :
1) PER (TTM) = 2085m/450m = 4.63
2) PBR = RM 2.59 / RM 3.56 = 0.73
3) EV / EBITDA ( TTM) = RM 1599 / RM 1336m = 1.20
4) EV / 2P = 5.88 ( peer median = 6.90) **as of 12 March 2024
5) Market cap / Estimated Net cash generated from operating activities (FY2024) = RM 2085 / RM 1118m = 1.865
6) Growing Dividend : 3.75sen ( FY2021), 5.00sen ( FY2022), 6.25sen ( FY2023), 7.50sen ( FY2024F)
7) Total share buy back = 6385200 ( 0.79% of total issued shares)
8 ) Future growth : Extension of PM3 CAA license (CY2024), Teal West Project(CY2025), Fyne Project ( CY2026), Marigold Project (CY2028) , acquisition another high quality producing asset ( ? CY2026)
9) High quality and reliable management teams
10) Wide economic moat company : Almost impossible to get borrowing from banks or raise funds from the public to set up a pure E&P oil & gas company in Malaysia due to ESG issues.


Conclusion :Hibiscus is an extremely undervalued and high quality company in KLSE. Very difficult to find a growing company with low PER, low PBR, extremely low EV/EBITDA and strong cash flow. But share price might not explode due to high CAPEX in FY2024 and FY2025.


I started INVEST hibiscus since 2020

In May 2020, first bought at range of RM 0.500-0.615, but sold all shares in 23/11/2020 with RM 0.550. ( VERY REGRET NOW)

In July and August 2021, accumulated at range of RM 0.605-0.665, no chances to buy at this price already.

In August and October 2022, accumulated at range of RM 0.815-0.825, no chances to buy at this price already.

In June 2023, accumulated at range of RM 0.895-0.905, no chances to buy at this price already. ( HOPEFULLY STILL GOT CHANCE TO BUY AT THIS RANGE)

As a long term investor, I am very happy to growth my wealth with hibiscus. I just target compound growth of 10-12% per year (included dividend). This is my strategy:

Step 1: Save money every month

Step 2: buy low and dont chase high. Hibiscus is cyclical stock. Mr Market sure will give us one or two chances every year to accumulate hibiscus.

Step 3 : Be discipline and repeat Step 1 and Step 2

Kuala Lumpur, 9 November 2018

Sapura Energy Berhad (Sapura Energy) and OMV on 9 November 2018 signed a Share Subscription Agreement and a Shareholders’ Agreement to form a strategic partnership.

Under the agreements, OMV Exploration and Production GmbH (OMV E&P), a wholly-owned subsidiary of OMV Aktiengesellschaft, will buy a 50 per cent stake of the enlarged issued share capital in a newly-formed joint venture company, SEB Upstream Sdn Bhd (SUP), based on an enterprise value of up to USD1.6 billion comprising an equity value of up to USD1,250 million and debt of USD350 million.

As part of the transaction, OMV will pay USD540 million for 50 per cent interest in SUP at closing by subscribing to newly issued shares. In addition, the parties agreed to additional consideration of up to USD85 million based on certain occurrences mainly linked to the resource volume in Block 30, Mexico at the time of taking the final investment decision. Both parties have also agreed to refinance the existing intercompany debt of USD350 million.

This transaction will result in Sapura Energy receiving up to USD975 million from the proceeds from OMV’s subscription payment of USD540 million and additional consideration of up to USD85 million, as well as from the repayment from the refinancing of intercompany debts of USD350 million.


https://sapuraenergy.com/press_release/sapura-omv-energy-enter-strategic-partnership/

According to Investor Presentation January 2024, Page 12,

EPF already bought 3.2% Hibiscus shares ( As of 31/12/2023)

Hopefully more to come.


https://www.hibiscuspetroleum.com/

There are many types of Brent Crude prices.

Popular media references to "Brent crude" usually refers to the ICE Brent crude oil futures price. It was originally traded on the open outcry International Petroleum Exchange in London starting in 1988, but since 2005 has been traded on the electronic Intercontinental Exchange, known as ICE. ( Oilprice.com, investing.com and CNBC using this price)

Brent crude oil contract-for-difference (CFD) is a weekly spread or swap between the Dated Brent assessed price and the Second Month (or M2) Brent crude oil forward contract. ( Tradingview using this price)



https://en.wikipedia.org/wiki/Brent_Crude


https://www.ice.com/products/219/Brent-Crude-Futures/data?marketId=5430841


https://www.tradingview.com/chart/?symbol=TVC%3AUKOIL

Thanks to Mr Market, got chance to accumulate RM 4.07. Will hold at least 5 years

DR KENNETH GERARD PEREIRA
12-Oct-2023
Acquired 3,000,000
RM 1.102

DR KENNETH GERARD PEREIRA
11-Oct-2023
Acquired 2,500,000
RM 1.107

DR KENNETH GERARD PEREIRA
27-Sep-2023
Acquired 500,000
RM 1.114

DR KENNETH GERARD PEREIRA
26-Sep-2023
Acquired 500,000
RM1.102

DR KENNETH GERARD PEREIRA
25-Sep-2023
Acquired 500,000
RM 1.104

DR KENNETH GERARD PEREIRA
21-Sep-2023
Acquired 500,000
RM 1.062




DR KENNETH GERARD PEREIRA
06-Jul-2022
Acquired 400,000
RM 0.908

DR KENNETH GERARD PEREIRA
27-Jun-2022
Acquired 500,000
RM 0.932




From 01/07/2022 till 30/06/2023 (FY 2023), with average Brent oil price USD 86.52, and daily production around 20,000boe, Hibiscus was able to generate net profit of RM 400m and net cash generated from operating activities of RM 726m.


Hibiscus aims to produce 35,000-50,000boe by CY2016. So how much of the net profit and cash flow Hibiscus able to generate in 2016 /2017? May be Dr Kenneth already knows the answer, with current market cap of RM 2,200m, that’s why he is buying shares non-stop.


https://www.investing.com/commodities/brent-oil-historical-data

1) Hibiscus bought Anasuria Cluster Asset in 2016 with USD 52.5m
–payback period < 1 year
–estimated annual net profit (Brent USD 80/bbl): RM 50-100m

2) Hibiscus bought North Sabah Asset in 2018 with USD 25m
–payback period < 1 year
––estimated annual net profit (Brent USD 80/bbl): RM 50-100m

3) Hibiscus bought Repsol Asset in 2022 with RM 890m
–But final purchase consideration was just RM 581m
–from 25 January 2022 to 30 June 2022, Repsol Asset already generated net profit of RM 253m
–from 1 July 2022 to 30 June 2023, Repsol Asset generated net profit of RM 367m
–payback period < 1.5 year
––estimated annual net profit (Brent USD 80/bbl): RM 250-350m

4) Projects in progress:
–SF30 Water Flood Phase 2 development project (North Sabah)
–debottlenecking project, KN-119 well workover and electrical submersible pump pilot facilities projects (Kinabalu Oil)
–Bunga Lavatera drilling campaign and the BOB-6 workover (PM3 CAA)
–Teal West Project
–Extension of PM3 CAA license (possible extra increment of 30Mboe 2P reserves, estimated by Maybank)

5) Future Projects
–Fyne Field with Rapid Oil
–Marigold and Sunflower Project
–acquisition another high quality producing asset

Russian Oil Is Trading Closer to $100 Than the G-7 Price Cap


Russia’s flagship Urals grade is trading at $85.35 a barrel from the Baltic port of Primorsk and $86 from the Black Sea port of Novorossiysk.



https://finance.yahoo.com/news/russian-oil-trading-closer-100-103001221.html

Russia Sells Urals Oil To India At $20 Above The Price Cap


Data from traders and Reuters calculations showed that free on board (FOB) Urals cargoes to load from Russia’s western ports on the Baltic Sea in October were nearly $80 a barrel for Indian refiners as of Thursday.



https://oilprice.com/Latest-Energy-News/World-News/Russia-Sells-Urals-Oil-To-India-At-20-Above-The-Price-Cap.html

Russia dodges G7 price cap sanctions on most of its oil exports


https://www.ft.com/content/cad37c16-9cbd-473c-aa2f-102c21393d2e?ftcamp=traffic/partner/feed_headline/us_yahoo/auddev

19/09/2023, Dr Kenneth used RM1,109,000 to buy 1,000,000 unit shares.

20/09/2023, Dr Kenneth used RM1,091,000 to buy 1,000,000 unit shares.

Why? Why? Why? Dr Kenneth, please tell me why you wanted to buy at these prices??

**Annual salary of Dr Kenneth is around RM5,000,000



https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3386789

Maybank IB says Genting’s target price could be raised to RM8.86 if TauRX gains FDA approval for Alzheimer’s drug
-----01 Feb 2023, 02:26 pm

“Should HMTM be approved, TauRX be ascribed US$15 billion valuation and assuming nil holding company discount, we estimate that our Genting Bhd SOP-based TP may be revised to RM8.86 which would translate into a whopping 79% upside potential,” said Maybank IB, which currently has a “buy” call on the stock and increased its TP a tad to RM5.64 from RM5.59.


https://theedgemalaysia.com/node/653737

Genting-backed TauRx to seek regulatory approval for Alzheimer's drug
----06 Oct 2022, 10:53 pm

TauRx could contribute RM1.3 billion to RM4.3 billion to Genting’s earnings in the financial year ending Dec 31, 2024 (FY24) to FY26, assuming a 10% net margin, the research house said.

“It could also fetch an upside of RM3.47-13.88/share based on 10x P/E (c.35% discount to peers’ average) on our base and bull cases for FY24F earnings, which translates to hypothetical TPs (target prices) of MYR9.84-20.25 for Genting,” said RHB.


https://theedgemalaysia.com/article/gentingbacked-taurx-seek-regulatory-approval-alzheimers-drug

Summary of HLIB report on 18/9/23:

1) Hibiscus’s net entitlement to Marigold and Sunflower stands at about 60MMbbl of 2C contingent oil resources, equal to 80% of existing 2P reserves of Hibiscus. We are positive on this development as it marks one step further for Hibiscus towards tapping its 2C resources. Subject to the conclusion of FDP submission and regulatory approval process, management guided it will roughly take 12 months from the submission day to reach FID (c. early-CY25). Subsequently, it will take about 4 years to achieve first oil (c. end-CY28).

2) We estimate Hibiscus’s net production will peak in FY25f (25k boepd), the first oil from Marigold field (c. 4-5 years from now) serves as another lever of growth for Hibiscus. Although the production rate of the oil field is still uncertain at this juncture, we think it will substantially elevate Hibiscus’ net production due to the sizable 2C resources within the field.

3) Post earnings adjustment and rolling over DCF valuation base year, we maintain BUY with higher TP of RM1.29 (from RM1.12). Our TP is derived based on NPV of all its producing assets’ future free cash flows (FCF), after accounting for each asset’s targeted lifespan. At about only 5x revised FY24f P/E, we believe that Hibiscus is a compelling case and is conspicuously undervalued given its strong foothold in the upstream energy space.

I started INVEST hibiscus since 2020

In May 2020, first bought at range of RM 0.500-0.615, but sold all shares in 23/11/2020 with RM 0.550. ( VERY REGRET NOW)

In July and August 2021, accumulated at range of RM 0.605-0.665, no chances to buy at this price already.

In August and October 2022, accumulated at range of RM 0.815-0.825, no chances to buy at this price already.

In June 2023, accumulated at range of RM 0.895-0.905, no chances to buy at this price already. ( HOPEFULLY STILL GOT CHANCE TO BUY AT THIS RANGE)

As long term investor, I am very happy to growth my wealth with hibiscus. I just target compound growth of 10-12% per year (included dividend). This is my strategy:

Step 1: Save money every month

Step 2: buy low and dont chase high. Hibiscus is cyclical stock. Mr Market sure will give us one or two chances every year to accumulate hibiscus.

Step 3 : Be discipline and repeat Step 1 and Step 2

On behalf of Hibiscus Petroleum, CIMB Investment Bank Berhad ("CIMB") wishes to announce that Bursa Malaysia Securities Berhad ("Bursa Securities") had vide its letter dated 4 September 2023, approved the Proposed Share Consolidation, subject to the following conditions:



(i) Hibiscus Petroleum is required to furnish Bursa Securities with a certified true copy of the resolution passed by the shareholders at the extraordinary general meeting for the Proposed Share Consolidation; and



(ii) Hibiscus Petroleum or CIMB is required to make the relevant announcements pursuant to Paragraphs 6.56(2)(ii) and (iii) and Paragraph 13.20(2) of the Main Market Listing Requirements of Bursa Securities.



This announcement is dated 5 September 2023.


https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3383457


No date for EGM yet. Most likely virtual meeting and vote online. We will get the answer at the same day.

just my simple estimation and calculation :

2C resource of Marigold West(Hibiscus and Caldera) = 44 MMstb
2C resource of Marigold East (Ithaca) = 15 MMstb

Total 2C resource of Marigold field = 59 MMstb

Hibiscus holds 61.25% interest = 59M x 0.6125 = 36.14 MMstb

After complete Marigold project, Hibiscus might develop Sunflower project. 2C resource of Sunflower field is around 5.8 MMstb. Hibiscus holds 87.5% interest = 5.1 MMstb

This project is definitely bigger than Rapid Oil Project

Hibiscus Petroleum, Ithaca Energy and Caldera Petroleum Enter into Marigold Field Unitisation and Unit Operating Agreement



AHUK to have 61.25% interest in the unitised development and lead the integrated project team


https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3385658

Please read and compare statement of cash flows from Hibiscus and DNEX

Hibiscus, page 6
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=224398&name=EA_FR_ATTACHMENTS


DNEX, page 6
https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=224849&name=EA_FR_ATTACHMENTS


Please pay attention to CASH FLOWS FROM OPERATING ACTIVITIES

Sorry for the misunderstanding, I am not promoting DNEX

First class of companies will generate countless free cash flow for their capital expenditures ( Hibiscus doing this !! )

Second class of companies will borrow money from banks for their capital expenditures ( Hibiscus doing this !! )

Third class of companies will issue bonds and borrow money from public for their capital expenditures (because banks not dare to lend)

Fourth class of companies will issue private placement or right issue for their capital expenditures (minor shareholders will not like this, DNEX doing this !!)

Fifth class of companies cannot generate free cash flow and cannot borrow money (waiting to be delisted)

DNeX plans RM133 mil private placement to develop O&G fields

https://theedgemalaysia.com/node/682421



Capital expenditure net to the Group expected to reach USD415.8 million over calendar year(“CY”) 2023 and CY2024.
---from Hibiscus Corporate and Business Update, 23 August 2023

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=139593&name=EA_GA_ATTACHMENTS


No fund raising from Hibiscus at the moment. This is the different of good company and mediocre company.

The G7 Has No Immediate Plans To Review Its Russian Oil Price Cap


The price of Russia’s flagship crude grade, Urals, averaged $74 per barrel in August, slightly down from August 2022, but way above the G7 price cap of $60 and higher than the July average of $64.37 a barrel, data released by the Russian Finance Ministry showed last week. Between January and August 2023, the average price of Urals was $56.58 per barrel, compared to an average of $82.13 a barrel for the same period of 2022.


https://oilprice.com/Energy/Energy-General/The-G7-Has-No-Immediate-Plans-To-Review-Its-Russian-Oil-Price-Cap.html

Rapid aiming to add Crinan, Dandy to North Sea Fyne cluster project


Rapid CEO Hallvard Hasselknippe said, “This adds approximately 7 MMbbl to our contingent resources. In particular, Crinan will be a very cost-efficient add-on, as it can be drilled from the Fyne Central location.”



https://www.offshore-mag.com/regional-reports/north-sea-europe/article/14288224/rapid-aiming-to-add-crinan-dandy-to-north-sea-fyne-cluster-project

Rapid Oil Production Ltd


https://oeuksharefair.co.uk/wp-content/uploads/2023/02/Rapid-Oil-Production.pdf

Are We Nearing A Fossil Fuel Turning Point?


Bottom line: it looks as if fossil fuel consumption as a whole slows down and peaks in five years (more or less), but oil will peak later because, initially, the renewable boom will reduce the use of fossil fuels in electricity generation faster than electrification of transportation.


https://oilprice.com/Energy/Energy-General/Are-We-Nearing-A-Fossil-Fuel-Turning-Point.html

Climate Change Framework , by Hibiscus Petroleum

https://ir2.chartnexus.com/hibiscuspetroleum/docs/sustainability/Climate-Change-Framework.pdf

Thanks to Mr Market, got chance to accumulate again at RM 0.895 - RM 0.905 range. Will hold till at least 2026

Agreed with zhangzuode. During latest online AGM, Dr Ken already clarified that the increasing of lease liabilities after Repsol acquisition is due to the leases of the 2 FSO in PM3 CAA.

Hibiscus has RM 668 million of unrestricted cash, RM 194.6 million of restricted cash and only RM 194 million of term loans + revolving credit.

Why is Buffett 10X Richer than Carl Icahn? 5 Lessons I Learnt, Part 1


https://www.youtube.com/watch?v=v6ru0o2gmJo

Warren Buffett Buys Up Even More Occidental Petroleum


Warren Buffett’s Berkshire Hathaway bought additional shares in Occidental Petroleum this week, raising its stake in the U.S. oil firm to 24.4%,


https://oilprice.com/Latest-Energy-News/World-News/Warren-Buffett-Buys-Up-Even-More-Occidental-Petroleum.html

U.S. Shale Production Is Set For A Rapid Decline



“Indeed, the energy sector is the cheapest of all 11 U.S. market sectors, with a current PE ratio of 5.7. In comparison, the next cheapest sector is Basic Materials with a PE valuation of 11.3 while Financials is third cheapest at a PE value of 12.4. For some perspective, the S&P 500 average PE ratio currently sits at 22.2. So, we can see that oil and gas stocks remain dirt cheap even after last year’s massive runup, thanks in large part to years of underperformance.”


https://oilprice.com/Energy/Crude-Oil/US-Shale-Production-Is-Set-For-A-Rapid-Decline.html

Queuing at RM 0.905 since 2 weeks ago. Hopeful can get this time.

In 16/09/2020, I had posted the summary of Empire Resorts. Please correct me if I am wrong.

Empire Resorts is a company that owns the Monticello Raceway in the Catskill Mountains 90 miles (140 km) from New York City. Monticello Gaming and Raceway is a harness racing track and racino in Monticello, Sullivan County, New York. The casino at the raceway operates under a state license permitting slot machines at designated race tracks

2003 : Empire Resorts was founded in 2003 through a consolidation of Alpha Hospitality and Catskill Development LLC, a company that had purchased the Monticello Raceway in 1996. In 2003 Empire Resorts became a NASDAQ Global Market company

2009 : In August 2009, Kien Huat Realty (KH) invested $55 million in new equity capital, which represented just below 50% of the voting power of Empire Resorts.

2015: In December 2015, Empire Resorts received a full gaming license by New York State Gaming Commission. Empire planned to build an 18-story casino, hotel and entertainment complex after being rewarded with this new license.

2016: In February 2016, Kien Huat Realty purchased $290 million worth of shares, giving the firm 88.7% ownership of Empire Resorts. All proceeds from the sale of shares will be used for the project development. Empire also borrowed $545 million for this project.

2017: In April 2017, this project was named as Resorts World Catskills, from Montreign Resort Casino

2018 : Resorts World Catskills ( RWC) opened on February 8, 2018. The property features 65,000 square feet (6,000 m2) of gaming space with 150 table games and over 1,600 slot machines, and an 18-story hotel tower with 332 suites. During the period between the casino's February 2018 opening and June 2019, the company reported $211.5 million in losses.

2019:
In August 2019, an SEC filing indicated that Empire Resorts was considering bankruptcy.

6 August 2019 : Genting Malaysia and KH had entered into a binding term sheet for GenUSA to acquire the 13.2 million shares in Empire at US$9.74 each for about US$128.6 million (RM538.8 million). This caused GENM share price dipped 12% in a day.

4 Nov 2019 : GENM purchased 13.2 million shares in Empire Resorts Inc from Kien Huat(KH). GENM holds a 38.3% equity stake in Empire on an undiluted basis and 33.3% on a fully diluted basis assuming full conversion of all preferred stock currently outstanding into Empire's common stock.

18 Nov 2019 : delist all Empire common stock from the Nasdaq

2020 :
16 March 2020 : RWC shut down due to COVID-19

19 March 2020 : GENM subscribed for up to USD40.0 million (or RM174.8 million) of Series G Preferred Stock of Empire for the purposes of a refinancing plan and working capital. Number of shares of Common Stock issuable upon conversion is limited to a cap of 49% of total issued and outstanding Common Stock.

July 2020 ; Empire launched a USD475 million senior secured notes (“Bond”) offering. However, the completion of the Bond offering has been impacted by the COVID-19 pandemic.

9 Sept 2020: RWC reopened

11 Sept 2020 : GENM has entered into a new subscription agreement with Empire Resorts to subscribe for Series L Preferred Stocks with US$150 million (RM625 million). Assuming the full conversion of Series L Preferred stocks to common stock, GENM's effective shareholding in common stock will increase to approximately 57% in 2030.


For the financial year ended 2019, RWC registered a 48% growth in total gross gaming revenue to US$208.7mil from US$140.6mil previously.
Since the new management was appointed in the fourth quarter of 2019, the operating performance of RWC has significantly improved over prior year. Prior to its temporary closure in mid-March 2020, RWC’s gaming revenue grew by 31% as compared to the same period in 2019 and the property registered earnings before interest, taxation, depreciation and amortisation (“EBITDA”) of USD 2 million (or approximately RM 8 million) in the first two months of 2020, an increase of USD10 million(or approximately RM 42 million) from the same period last year

RWC is one of the newest and highest quality gaming assets in the northeast U.S., with over USD 900 million invested. It is one of the closest gaming facilities to New York City offering live table games including Baccarat and Blackjack. ( As mentioned in ‘Announcement” , 15 August 2019 in GENM website)

@Dragon328

I think Empire Resorts only owns:
1) Resorts World Catskills (RWC)
2) Resorts World Hudson Valley (RWHV)
3) Resorts World Bet ( online sports betting)

Genting Malaysia’s wholly-owned subsidiary Genting New York, LLC owns 100% of Resorts World New York City, which operated the Video Gaming Machine facility in Queens, New York City, at the site of the Aqueduct Racetrack since 28 October 2011

Alzheimer’s patients may wait years to get treated with new drugs, putting them at risk of more severe disease



https://www.cnbc.com/2023/04/30/alzheimers-treatment-patients-may-wait-years-for-new-drugs.html

Andurand Sees Oil Prices Hitting $140 This Year As Goldman, Sen Also See Sharp Rebound


https://www.zerohedge.com/markets/andurand-sees-oil-prices-hitting-140-year-goldman-sen-echo-optimism

Hibiscus Petroleum Investor Day 2023
--16 March 2023

very informative !!

must read !!

Extension of the PM3 CAA licence and Teal West Project !!



https://www.hibiscuspetroleum.com/wp-content/uploads/2023/03/Hibiscus-Investor-Day-2023-%E2%80%93-16-March.pdf

Quinn: Is The US Banking System Safe? ...15 Years Later


If the Fed slashes rates and goes back to money printing through QE, the current 6% inflation rate will skyrocket back to double digits. If Powell does nothing or continues raising rates, the banking system will likely collapse. His choices are deflationary collapse or hyper-inflationary collapse. He’s stuck between the proverbial rock and a hard place.



https://www.zerohedge.com/markets/quinn-us-banking-system-safe-15-years-later

Thank a lot for the prompt reply, dragon !! Very informative and open my eyes how to evaluate Genting again. Looking forward any latest update from you.

I also deeply believe that Genting is extremely undervalued. Current market price provide value investor a lot of margin of safety. I started collecting Genting since May 2020, never regret. Hope still has chance to collect at cheap price.

Excellent write up!! Just wonder how you count the net cash? Where to find the figure of net debt RM18.2b, cash proceeds RM26.3b ?

After the latest 4QFY2022 report, HLIB estimated Genting Berhad has net cash of RM 800million.

The Mindset of a Value Investor - Li Lu



https://www.youtube.com/watch?v=PpeBlcd8ixk

zhangzuode - Happy New Year to you and family !!

Can Global Oil Production Climb If The U.S. Shale Boom Is Over?


There may be other sources of oil worldwide that will somehow make up for the significantly lower growth in U.S. shale oil production. But no other source seems set to provide the kind of growth U.S. shale oil provided, that is, 73.2 percent of the global increase in oil production from 2008 through 2018.



https://oilprice.com/Energy/Energy-General/Can-Global-Oil-Production-Climb-If-The-US-Shale-Boom-Is-Over.html