That's a sound argument, but why today? And on such heavy...

First 5 Last

Share
Profile

Follow
razman1983

781 Posts.

7

20/11/15

15:58

Post #: 16443655
Share

Originally posted by sivart ↑

Raz,

The SP action is actually what I was expecting would have happened on Monday.

As I said in the other thread:

Let's take what the market sees on the surface.
1) FERC was a probably a given so that announcement is meaningless to Mr Market.
2) The EPC contract is $850M higher than the guidance was.
3) The company has brought forward the additional two trains and needs to commit equity to the project (something that many didn't realise was going to eventually be the case, and something that many would be now questioning where it's coming from).
4) We still only have 1 BTA.
From the markets perception I'm surprised people expected that the FERC and EPC announcements were suddenly going to to put a stop to the downwards movement or sideways movement in the SP.

Clearly there is a lot more to the story than this surface level view, but unless you bother looking into and uncover the detail (which the market rarely does) then I wouldn't expect much to change until we get an announcement on the Stonepeak deal that's been done (and thus what the EPC numbers and the 8mtpa means for ownership and earnings) and at least one more BTA. Any increase in price between now and then is unpredictable in my view.

On the other hand, I'm personally not too concerned about the EPC or the upgrade in the project to 8mtpa requiring capital, or how either of these go together in terms of ownership and earnings. And I'm not too concerned about getting the next tollers. However we will have to wait a little for these to eventuate.

Expand

That's a sound argument, but why today? And on such heavy volume? Someone serious is offloading.

LNG Price at posting: $1.30 Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

CIA

'Share long-term visions': Champion Iron rallies on mooted Nippon, Sojitz partnership

Listen: HotCopper Wire Podcast 018 – Potatoes, TACOs, and the $120M helicopter heist

FBU

Fletcher Building 'exploring options' around construction division sale

ASX Market Close: How a megadam in Tibet pushed us into the red

RML

Resolution Minerals appoints industry experts to fast-track US growth strategy

First 5 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

That's a sound argument, but why today? And on such heavy...

Top Stories

'Share long-term visions': Champion Iron rallies on mooted Nippon, Sojitz partnership

Listen: HotCopper Wire Podcast 018 – Potatoes, TACOs, and the $120M helicopter heist

Fletcher Building 'exploring options' around construction division sale

ASX Market Close: How a megadam in Tibet pushed us into the red

Resolution Minerals appoints industry experts to fast-track US growth strategy

Featured News