Haiiii ... said until saliva run dry already. The assets of this company is bought at the time when oil price was high, mostly with debt, now oil price has dropped, their asset value also drop but debt remain very high, they can't roll over their loan with the reduced value of asset, so shareholder has to make up the shortfall with a big hit on dilution. The last i heard, they are still trying to refinance their existing debt, the RI proceed only reduce a portion of it.
If a newcomer joins in, they will have the cost advantage because the asset value is matched with the current oil price vs. umwog, all bought at high price.
Gearing drop from 1.40+ to just 0.40...60m interest savings...after paid 1.5b debt with right issue...on d road of recovery...see latest Q already see revenue jump from 50m to 149m...
Bit weird when ASB acquired 2.7billon umwog share at the end of the year... need money to pay asb dividend for 2017...maybe kot huhu...take care urself...dont be trapped..
i3lurker, ...600m turnover is not a great figure fur a 8bn shares issued company. Let's hope and see how management manages and executes their strategy..n
Most of their loan is on 5+5. That's not really long term considering the rig can be used up to 30 years. After 5 years, the bank may not agree to a rollover, then how? Now they are pushing the financing limit by refinancing some of their assets that are already been fully paid off.
By the way, the RI proceeds are used to pay off part of the bank loan only. Another few hundred which is supposed to be working capital will be used to pay off UMW advance. You call that cash rich? If they are cash rich, they should buy more asset now cos it's cheap. Instead, they may be disposing their HWU assets and pipe threading business.
Your strategy only allow you to be cash flow positive. What about depreciation? It will take away huge profit. I never say this company will go bankrupt but don't expect fantastic profit and best of all, the profit is shared by large amount of capital.
2016 accounts show high gearing. Recent rights issue wipe out high gearing. Unwog now financially in better shape. Now crucial for umwog management to manage and EXECUTE well and Not make anymore blunders. Of course oil price dependent. But with support of our local fund institutions, umwog hopefully is on the mend. Management please don't slack and neither take too long kopi breaks. Shareholders will come after management if you all goyang kaki.
Yeah, drilling activities now on the rise. Umwog should buy more rigs before the price of rigs increase. Borrow more money, ask for more RI and buy more rigs now. Show us how confident you are with this uptrend.
Oct. 23, 2017 9:11 AM ET| Includes: BNO, DBO, DNO, DTO, OIL, OILK, OILX, OLEM, OLO, SCO, SZO, UCO, USL, USO ValueAnalyst ValueAnalyst Value, long-term horizon MARKETPLACETesla Forum
(4,159 followers) Implications
Despite oil bears' screams that "rig counts no longer matter," they sure do.
Even though the recently invented metric, "rig productivity," has surged in 2015, the more recent data prove that a large chunk of this increase was primarily due to operators focusing on the most productive wells, also known as "high grading." This trend, however, has recently reversed as the number of drilled wells has increased since 4Q16, and operators have had to look beyond the most productive regions in a given shale play. The following graph illustrates this phenomenon for the Permian Region:
Unfortunately for oil bears, oil production is simply the sum of oil produced from new wells and existing wells. The following graph from the EIA's Drilling Productivity Report shows that oil production from existing wells has continued to decline at an accelerating rate:
Bottom Line
With the recent large drops in domestic rig count, combined with lower new-well oil production per rig, as well as accelerating declines from existing wells, I expect U.S. oil production to continue to disappoint throughout 4Q17.
The only bear argument left is that the completion of drilled-but-uncompleted wells will magically accelerate at still depressed oil prices, which is a myth I colorfully busted in Will DUCs Sink Oil Prices?
Once this sohai sparta starts to shout for buy,u know it is time to sell. This sohai sparta has got many stocks wrong already, 90% of his stocks call jump water. Only how to shout buy after shares moving, and get trapped at high price. really a sohai.
Really thick skin, somemore dare to call himself sifu and write blog, even a secondary school children can invest better than him. Lol..
99% fund manager either stuck UMWOG at high px (at least above IPO 2.80) or already sell off at a big loss. Currently almost all of them has zero holding...When later see financial result U turn...they will jump in like the way they sapu steel counters...push Annjoo to almost from 50c+ also ask u to buy...They will repeat again push UMWOG above RM1 or RM2 also ask u to sapu....History always repeat by itself.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Yole Bek
107 posts
Posted by Yole Bek > 2017-11-01 12:57 | Report Abuse
Engine started?