No doubt, NEN is in a deep precarious situation. It’s over six weeks since the outcome of Vietnam drilling and, it is quite likely NEN would know the total cost of the drilling by now.
However, NEN management is not willing to face cost reality under the pretext of negotiations, which I believe is not true. In fact, NEN knows cost overruns and unmanageable options to meet its obligations.
It is important for NEN management to show some leadership and tell the truth with all underling facts leading up to the cost overruns. Disguising obligations under the banner of divestment planning of its revenue producing assets to buy time is nothing more than breeding unnecessary speculations.
Recently, FGE (Forge Group) did exactly the same and did not tell the truth to its shareholders. One announcement after another gone by with significant speculations in the market and share volatility finally, FGE had no option but to face the reality.
It is never too late to learn from past examples.
precarious situation
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