Just got a chance to listen to the full year results presentation. Alan spoke particularly well.
About a month or so ago, I was perusing the ROC threads from Jan 2013 (to get some context to what should have occurred since then as well as predictions by posters). By Feb 2013 the share price hit a high of $0.58 cents. Move forward 12 months and here we are, the share price is 20% lower, yet ROC production is 20% higher, its cash balance is 40% higher (not including the RSC assets), the company has again proven it is capable of making a profit, execution on projects continue to show it J/V partners its a professional outfit, the one negative is the price of brent, which is down 10%, however, in AUD, its about even. But because most of the capex is in US, unless ROC start spending in AUD on assets (which might occur, but the focus is def south east Asia), then the revenue will be below what some expect. Not that revenue was not impressive.
The Q & A part of the preso was excellent. The Bentara oil field alone could add 2,000bopd net to ROC in coming weeks/months (as Blam mentions). Which, I think provides ROC with an excellent chance of outperforming its quite conservative guidance.
Does anyone know btw, how much they might get for the U.K assets? Good to know Enoch will also provide a small boost to production soon too.
Blam, great rundown. I think it important to note that the capex spent on the Balai cluster is for all 4 fields... so the small right down is merely ROC being rationale about what the situation is right now, things will most likely change. I disagree about Balai being a gap filler, there is more to it than that. The reserves and solid revenue will make it a solid asset for ROC over coming years.
Capex of just $60 million - Alan reiterated, because some brokers just cannot understand that what he says, is what he means. This year will def be one for building up the cash pile.
Of course, that could change if ROC buys or J/V new projects...
I just hope the SP goes a bit lower so I can add to my small position. As Auto has mentioned in the past, ROC has excellent downside protection, while offering very achievable upside targets.
Add to My Watchlist
What is My Watchlist?
