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clock Created with Sketch. 01/06/20
19:39
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Originally posted by Homerun78:
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The previous management and board were just performing as though they were bulletin boards for LNGL for the last 2 years, there was no effort in driving its projects towards financial close especially magnolia lng and kept blaming market conditions to the inability of them securing long term customers for Magnolia LNG for Magnolia to attain financial close, what good is a management team if that is the only justification that they could say to shareholders from quarter to quarter aside from pointing the obvious that the company need to seek ways in raising funding but again management only outlines the problem with no credible solution presented at any point in time. Not to forget Magnolia LNG has been in a state of "shovel ready" for the last 3 years and notwithstanding LNGL actually raised significant funding early 2018. Other LNG projects were way behind in its development status but now not only have they secured customers but also attain financial close. One example is Venture Global. It was obvious the management was commercially not competent and the board was unfortunately on management side rather than shareholders. This empowered the management to continue dragging its feet on LNGL projects and allowed the situation to go downhill till the point it was receiving offers that offered no credible plans and it became more like try your luck kind of thing again at the expense of the shareholders. Shareholders should not accept liquidation as a way forward as that is effectively no value rather its good to continue to seek out a turnaround option which comes with a new set of experience and credible board/management by also bringing LNG synergies especially synergies that can lead to long term creditworthy customers with the ability to optimise Bear Head including new liquefaction strategies which will enable LNGL to move forward. LNG outlook should not be gauged by current market conditions as most of these developments similar to Bear Head will be addressing the market 2025 onwards and with the continued growth of fuel switiching policies from coal to natural gas for power generation adopted by many countries such as Korea, India, Southeast Asia and also Brazil will mean that demand for long term LNG supply will return in huge way from 2025 onwards and starting from now these demand points will need to lock up LNG supply agreements to meet the fuel switching needs.
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Yeah, nah. They didn't secure customers because there aren't any. China hasn't taken a US LNG shipment for 2 years.
