Skil Ports & Lg Share Discussion Threads

[waterloo01] 25/11/2016 15:43

Hope so. Gandhi no longer has a blocking stake.

[lefrene] 25/11/2016 15:32

Someone has parachuted Lord Flight into the mess, who and why? As in, is he the thin end of a wedge to remove the existing Board?

[phowdo] 25/11/2016 12:27

10M - is that the last of Gandhi's holding sold?

[phowdo] 25/11/2016 10:30

I see the directors backed up the truck to load up...




Well, tonka toy trucks at least, probably the same ones they used on site...

[diku] 24/11/2016 14:03

I would have thought the new investor in conjunction with other large outside investors...would have a new man/woman working together with Gandhi so latest updates can be more reassuring...so there is no element of dodgy happenings...is the new investor playing with his/her money or other peoples money?..

[mount teide] 24/11/2016 13:29

SKIL Ports & Logistics Limited Placing, Open Offer and Subcriptions

'The Directors expect that the continued expansion of JNPT will represent significant opportunities for the Company. In particular, the Directors believe that the Company will benefit from the Facility being able to offer:

-- mid-stream discharge and loading of cargo at anchorage whilst vessels wait to berth at JNPT;'

This is MISREPRESENTATION on an epic scale !

I would like the Directors(particularly, the non-execs), to explain to shareholders how the vessels operating to JNPT, which are almost without exception pure container carriers (huge deep sea vessels that are GEAR-LESS - with no cranes on board), loaded with containers routinely stacked on deck up to 10 to 12 high, can be discharged in the anchorage?

The air draft, distance from sea level to top of the highest deck container stack on board these vessels is routinely 35m - 40m, the height of a 14 storey block of residential flats!

hxxp://portoflondonhandbook.com/wp-content/uploads/2013/08/large-container-ships-London-Gateway.jpg

The small transhipment barges used in Mumbai Harbour are mostly gear-less, and of the few that do have lifting equipment; it is a tiny fraction of the specification required to handle containers to/from these ships.

The executive management are clueless, totally clueless.

Why are the non execs allowing the execs to put out such false and misleading information in a OPEN OFFER AND PLACING DOCUMENT?



'By the end of January 2017 the Company expects to have:

-- completed the dredging requirement;
-- reclaimed 70 per cent. of the land; and
-- constructed two berths, one of which will be capable of receiving vessels. '

With this timeline now just two months away - perhaps the Directors can update a disbelieving market, never mind Industry Professionals, as to how they are progressing against this absurd target of having 140 acres of land reclaimed and 2 berths complete, with one capable of handling vessels? When it took them more than 6 months just to complete 100m of piling(25% of that required for just two small berths!

edit - Have spoken to Cenkos, who predictably were unable to answer any of a number of questions put to them, but will pass them on for reply!

[guernseymoney] 24/11/2016 13:24

There will be a quarterly report issued by the executive mgmt starting soon.

[diku] 24/11/2016 13:15

I want to see the payment of receipts for piece of mind?....which person/company/contractor got paid?...any names?...

[phowdo] 24/11/2016 12:17

Well he's hardly likely to speak the truth is he...

"Ive been diluted to oblivion due to my own incompetence. The money I looted out of the companies coffers does partially makes up it though..."

?

[lefrene] 24/11/2016 12:08

To cover their tracks I notice the change of the company name. Whoever has put up the bulk of the money, needs to sack the Board and put in people that can be relied upon.

[pj 1] 24/11/2016 11:55

62% take up for the small open offer.....

I note

Nikhil Gandhi, Chairman of SPL said "We are pleased with the conclusion of the placing and open offer. With the resolutions now passed, another key milestone for completion of our project has been achieved.

key milestone eh? I wonder how long this has been a key milestone for? Years?

[waterloo01] 21/11/2016 16:14

Or just sell it to JNPT. They would make use and money out of it. Post this week, Ghandi will have lost his controlling stake so anything possible

[lefrene] 21/11/2016 15:48

I feel that the only prayer here is that whoever is putting up the new money will own circa 75% of the equity and thus can sack the Board and put in their own people. Is Lord Flight the advance party? Then they can trace where all the money has gone and perhaps chase any miscreants if something is amiss, but being India it would take many years to bring any miscreant to book.

[waterloo01] 20/11/2016 16:30

dvi, to save senior management time (!!) maybe you could share more of what has reassured you. I'll leave aside where the money has gone, as I don't expect they will actually tell you, and while I can accept that the 4.5m draft might be less of an issue, IF they are changing the mix, but have they said that or are they still insisting on it not being an issue with the current planned set up?

Further, and I guess most importantly, what did he have to say that gives you confidence, that the past performance won't be repeated. What (except for more ££) has changed? It's not the people and it's not the contractor, so what are they going to do differently?

I'm sure these questions, amongst others, will get asked at the AGM (even if Guernseymoney is the only one to attend), but it's a further area of 'disappointment'that they haven't made more of an effort prior to the open offer closing.

I wouldn't be too surprised if it's well oversubscribed, as there seem to be some more in the know that others and no upper limit on numbers of shares applied for, and I still think there could be decent value here, but such a shame they haven't used this fessing up to the shortfall to be straight with investors!

[diku] 19/11/2016 16:11

Any chance of seeing the payment receipts for doing what?...

[deepvalueinvestor] 19/11/2016 08:51

Communication with non institutional investors is definitely a problem and this was admitted by Pavan. These are all good points. Pavan is hard to contact but have you all tried? His number is 07956 209433. I suggest texting him first to introduce yourself then asking him to phone you.

[mount teide] 19/11/2016 02:24

DVI - something to ponder:

Between end of June 2015 and end of June 2016 the cash and loan position went from a total figure of £87m available, to £33m. A cash burn of £54m.

For this sum of money SPL management and their principal contractor carried out the following additional work for shareholders at Karanja:

completed 58 piles of the quay wall (about 65m of 1000m/6.5% of the total piling)
completed 60 acres of reclamation (30% of the total before ground improvement)
completed around 40% of the total dredging requirement to 4.5m.

I would estimate the cost of this work at somewhere between £12m and £15m!

A cash burn of £54m simply makes no sense whatsoever.

[jailbird] 19/11/2016 02:15

DVI,

You do not come across naïve.

Institutions get it wrong with AIM shares too.

Maybe they right off their losses against any gains...I do not know but it sure not a guarantee that this will succeed just because these guys have bought in

[diku] 18/11/2016 23:07

Does anybody know if there lock in period from selling for the new big holders taking up the placing?....

[diku] 18/11/2016 21:19

Worse comes to worse then just build a fishy port for fisherman!....

[saucepan] 18/11/2016 19:25

Some great discussion; thanks. Keep it coming.

[pj 1] 18/11/2016 19:12

And last but not least....Do not forget about the attempted ''ship repair facility'' smoke screen, which they were caught out on.

[clarksons1] 18/11/2016 18:19

DVI

'M&G suddenly take a 15% in the company? Why would the British Steel Pension Scheme, Schroeder and L & G dig deep again?'

I have no idea, have you asked them?

If you have i would very much like to hear the reasons, because none of the numbers now make any sense to me. Also, could they name one small port development project they have invested in previously? And which industry consultants have been advising them in respect to their investment in SPL?

Fund managers mostly restrict their investments in the ports sector to major port groups like DP World, that operate deep sea container terminals, which have straightforward, easy to understand economics.


I do not accept SPL have reclaimed 75 acres to date( who did the audit?) - i think it is at best around 60 acres of partially reclaimed land.

The original Karanja Plan is for a 1000m x 800m Port Area(200 acres) - the latest photographs suggest to me around 50 acres of land under reclamation inshore plus a finger out to where the berth piling is underway. I estimate 500-600m of berth piling when complete would end close to the western extremity of the existing reclamation. This would then produce a total port area of between 100 to 120 acres.

It is important to bear in mind the reclamation partially completed to date is mostly the foreshore which requires only modest amounts of sand fill: to complete the reclamation of the same area out to the berth will require many multiples of the volume of material used to date because this area is much deeper and therefore needs a much greater volume of material since it is presently permanently under water.

According to the design spec if they complete 300m of berth they will have around 60 acres of land behind it, 600m will have 120 acres and 1,000m 200 acres.

The shareholder circular stated they currently have enough money to complete 600m of berth and well over 120 acres of land reclamation - enough for the first 3 to 4 years of operation. So why are they raising further funds at a totally ridiculous share price to develop nearly the entire 200 acres and 1000m of berths BEFOTE commencing any commercial operations - it is complete and utter nonsense. (This is twice the size of the two largest ro-ro terminals on the Thames which have a designed annual throughout capacity of over 12m tonnes).

Why not develop the first 120 acres and 600m of berths at Karanja, make it a commercial success and then raise the remainder of the capital to complete the Port through debt or a capital raise at what would then likely be a very much higher share price? (If shareholders are interested in seeing their investment money again, I would suggest they repeatedly ask themselves this question until the only plausible answer becomes clear).

With a draft restriction of 4.5m in the Karanja access channel, i cannot see how SPL can generate sufficient revenue from what will be mostly transhipped barge traffic and low value dry bulk cargo on very small freighters, to cover the interest on the debt payment, never mind make a profit. Have you seen any of their latest revenue, cost and profit projections?

IMHO - the best £3k to £5k investment shareholders could make would be to appoint a marine engineering consultancy to audit the site development and, to produce a cost estimate for the work carried out to date, and another to complete the development as proposed.

Would not surprise me if the following scenario played out over time: the Port failed to produce sufficient profit to pay the interest on the bank loans; the banks foreclosed and took the port and equipment as collateral: following which a consortium led by Ghandi buys the port off the banks for around what they are owed, and then turn it into a pure logistics park, servicing the ever growing needs of the JNPT container shippers and receivers.

Without greater depth in the Karanja access channel imo, it is inconceivable that Karanja will be able to generate sufficient high paying, fast moving cargo handling revenue to make it commercially viable. For shareholders sake, i would like to be proved wrong, but would estimate the likelihood of this at less than 5%, which is why i will not reinvest at any price.


AIMHO/DYOR

[deepvalueinvestor] 18/11/2016 15:55

MT - I always enjoy your posts but for a non investor you are suddenly very vocal and pessimistic. I just wish you were saying such things when the share price was much higher as I would have trimmed further!

However, are you saying that the institutions investing all idiots? Why would M&G suddenly take a 15% in the company? Why would the British Steel Pension Scheme, Schroeder and L & G dig deep again? My suspicion is that the institutions have been very well informed but, as usual, the small private investors have been treated like mushrooms. I managed to get some sense from Pavan but I would love you to speak to him to get reassurance you need to invest again.

By the way, they have already reclaimed 75 acres of land! Why then the scare story that they will only reclaim 75-100 acres of land after spending a further £50m+? I know you are angry but let's keep it balanced.