the hype is in the pipe

Hi Delinvestor,

Even though the directors knew the outcome of the voting re: options package well in advance (early voting), they did not hide their disappointment. The representative from the shareholders association was rather taken by surprise and shocked by the outcome of this vote as he, the directors, myself and other shareholders are of the belief that to incentivize senior staff is certainly in the best long term interest of the company. One shareholder pointed out that the way the option package was marketed (or lack thereof) may have contributed to the rejection of this package by a majority of shares. The directors indicated that they will consider ways to reward senior staff and that this issue may be re-visited.

As I said in the previous heading ‘2013 AGM’, this year’s AGM had a different focus. No discussion about capex, allocation of gas to power station vs. lng plant (I think this is actually covered in the 2013 AR), or presentation of financials other than what is contained in the AR. As far as off-take agreements are concerned, it has been the long standing business practice of S. Elliott that he will only negotiate this, once the lng plant is near completion. In addition, as I pointed out in an earlier posting, the Pagbilao lng hub and power station will give EWC added flexibility in selling its lng. The capital works and budget to be submitted to SKMigas will need to await the 2D seismic data interpretation.

The HK listing was mentioned and, as per my previous posting, is tied to construction progress. The fundamental rationale for this listing is to present EWC to a wider and, I would add, a more sympathetic range of investors. At the moment, I do not believe that EWC intends to raise funds by way of this listing.

The message EWC wanted to get across at this year’s AGM was simple: look at the construction progress on the ground during the past 12 months. This, EWC management maintains, is a tangible sign that this company is undergoing a transformational change. And, given that this was possible during the past 12 months, wait what EWC will achieve ‘on the ground’ during the next 12 months.