Cash flow positive doesn't mean profitable. Petronas will give priority to locals but price must still match to market. And Petronas will not pay you if you screw up even if you are GLC. Someone also pointed out N4 is due for 5 yearly dry dock. This rig will earn no income for a few months and few millions of USD will be spent for this.
That is an average of USD144m per rig, and they are brand new rigs. I wonder how the UMWOG management will argue their way out with the auditors on asset impairment.
Whether share price rebound or not depend on the outlook of the industry and company. As UMWOG is in the rental of rigs business, rig business remain very challenging in the next 1-2 years. I suspect the Jul-Sept 2017 qtr result will be very bad. If so, the share price will come under tremendous pressure. I rather wait until the Jul-Sept qtr result out by end of next month.
Don't paint rosy scenario only. Impairment at least 750m coming. Either one shot kao kao since they got rights money coming or worse still delay into a few tranches.
This company ... if you can wait 10 to 20 years, this is a no-brainer buy, if you expect some miracle within 1 or 2 years, i really can't see the light yet. 100% utilization does not guarantee profit. The only thing they can promise so far is cash flow positive. Apart from drilling rigs, they also have workover rigs which are not contracted at all. Not even sure now who is their head for the workover operations. They also have a few plants that do pipe threading which are not profitable either. But I do know they are still maintaining the same big group of management team. The retrenchment they have been talking about are all low position staff and rig crew. This is how GLCs work, as always.
0.285/0.29 is the lowest for this year. Oil price is surging up back to 57/58 , losses is reducing. Just to wait the one day to come. It will back to 0.335/0.340 retailer will throw free warrant like no tomorrow, whether can buy at the lowest point then depend on your luck. It will rebounces .... just don't know when! Hahahaha
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WE HAVE AVAILABLE PETROLEUM PRODUCTS FROM RELIABLE REFINERY IN RUSSIAN FEDERATION WITH BEST PRICE AND QUALITY. BELOW PRODUCT ARE AVAILABLE WITH BEST OFFERS - FOB CI DIP AND PAY FOB PRODUCTS AVAILABLE
UMWOG highest with mkt cap almost hit 11b when share px around 5 then at low of 0.28 mkt cap down to just 600m... After right issue mkt now about 2.3b...for the stk to double the mkt cap to 5b likely not so difficult. The co revenue last Q already sent a strong signal co is on the recovery path. Revenue surge from below 50m to almost 150m is a gd sign. EPS loss also reduced substantially. After the right issue co is now able to focus on boosting revenue income in d future. It is gd time to accumulate the stock now
I don't understand why so many people are so negative with this counter...Please be positive, remain your confidence and support this counter together with PNB, EPF & KWP!
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emzekwhy
211 posts
Posted by emzekwhy > 2017-10-11 14:13 | Report Abuse
when is the listing date for the new shares arising from the rights issue??