The value in STO has always been in the medium to long term as its gas operations both PLNG & GLNG start kicking in revenue at full steam & we are now not far away from that. The risk in the short term has been the massive amount of debt & a much lower oil price.
I have always said if they can ride out the short term issue around the debt then in the medium to long term it will trade a lot higher than my $4-5 target.
We are almost there in regards the lower cost revenue coming on stream.
A reduction in debt via an asset sale or CR would see the short term pressure alleviated, but perhaps they are almost at the point they can ride it out.
I would be interested to know what people's thoughts are on their average cost of production will be with both GLNG & PLNG up and running. My guess is they need around USD48-50/bbl but it could be lower.
Anyone have any thoughts on that?
Cheers Daytr
The value in STO has always been in the medium to long term as...
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Last
$7.51 |
Change
-0.160(2.09%) |
Mkt cap ! $24.39B | |||
| Open | High | Low | Value | Volume |
| $7.61 | $7.63 | $7.51 | $41.29M | 5.471M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 21 | 87359 | $7.50 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.52 | 47894 | 6 |
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| Last trade - 16.10pm 04/06/2024 (20 minute delay) ? |
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Last
$7.52 |
Change
-0.160 ( 2.15 %) |
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| Open | High | Low | Volume | ||
| $7.61 | $7.63 | $7.51 | 849704 | ||
| Last updated 15.59pm 04/06/2024 ? | |||||
| STO (ASX) Chart |