Kistos Share Discussion Threads

[papillon] 07/4/2022 15:31

Well the KIST share price has certainly turned around from it's initial early morning drop. A very bullish sign, IMO.

[piratepeter] 07/4/2022 15:23

Malcy’s take: This is a full announcement covering all of Kistos’ history in which it has packed in more than some company’s in many years. The numbers speak for themselves and investors will be very happy with the pro forma adjusted EBITDA of €102.9MM in the 12 months to 31 December 2021, better than originally expected due to strong gas prices.

The bean counters have made impairments of €121.0MM which seems to me to be a ridiculous treatment especially when assets such as these will be highly dependent on the rise and fall of hydrocarbon prices, what might have happened if gas prices had fallen? The main message here is that technically Kistos is in a very strong position despite the impairment misnomer which is driven by accounting standards and that there is no question that the value of the assets acquired is significantly more than at the time of the deal.

Due to positive operational developments and those gas prices, cash balances on 31 December 2021 were €77.3MM (30 June 2021, €59.1MM), after capex of some €20.0MM on a cash basis. The group is now unhedged which readers will know I am supportive of and whilst a commitment to offset against capex is inevitable and thus hedging will come in time, at the moment Kistos is set very favourably.

There is one further point to make about the cash generation of the company and how it affects shareholders. I have seen published research showing how much of that cash will transfer to benefits for investors and the eagle eyed will see that by Q3 this year the company will have been able to retire its debt. This will mean that there will be no covenants on dividends or blocks on returns to shareholders and with cash at year end 2022 according to analysts of some €237m pre retiring the debt, distributions could well be part of the offering by Kistos.

Finally as if to rub it in the company reiterates that ‘given its financial strength and in line with its strategy, the Group continues to evaluate several business development opportunities in the energy transition space’. This was proved when the company announced that it had farmed-into TotalEnergies’ Greater Laggan area offshore the UK which adds 6/- boe/d and is backdated to Jan 1 which will encompass the 1Q strong price period. I wouldn’t be at all surprised to see further deals from Kistos if only to upset the bean counters…

[soundsplausible] 07/4/2022 14:50

@mariopeter

"Agree also that 2022 will be very special with around 250m EBITDA in Jan, Feb and March 2022 alone."

How do you come up with these figures?

[fardels bear] 07/4/2022 14:21

I have the idiot in filter but I expect this one is another of his rabid dogs that's going down, no?

[tazerface] 07/4/2022 13:25

Red down day down filth down

[mariopeter] 07/4/2022 10:13

Very very well done to the finance teams and auditors that was a lot of work to cover off and full of many technical aspects. Key points for us are:

High percentage of turnover is EBITDA (very very profitable). Revenue 89m and EBITDA 79m.
Goodwill only £7m going forward after all that backdating of the acquisition.
Capitalised exploration costs only £44m going forward. Was heavy on Q11.
Jury still out on directors' rewards.
FID on the oil in 2022.

Probably need some clarification on how the Total acquisition is to be accounted for ie proforma pre acquisition significantly reducing the cost of investment (which may be negative consideration) or is the date of acquisition to be 1st January with all revenue going through P+L from January 1 reflecting substance over legal form. The latter being better for the share price. Total will need to agree and will not affect massive cash boost.

[mariopeter] 07/4/2022 08:27

Fill your boots time.

[mariopeter] 07/4/2022 08:22

Tend to agree as most of the costs of the impairment will have been incurred by Tulip prior to KIST buying them.

Agree also that 2022 will be very special with around 250m EBITDA in Jan, Feb and March 2022 alone.

[tkamp] 07/4/2022 08:19

Unlikely that the market actually cares about an impairment, everyone knows that's a non-cash charge. Think it's more that people were probably hoping for some more detail on how the current year is developing and/or something new in terms of acquisitions. The results themselves are fine and inconsequential anyway given how huge 2022 is going to be for them.

[mariopeter] 07/4/2022 08:16

Market did not like the impairment which is quite big but masks excellent performance. Q11B water wet strikes again.

[papillon] 07/4/2022 08:10

"Here we go to £6 ++."

Looks more like £4

[mariopeter] 07/4/2022 07:57

Yes EBITDA at 79M and I had projected 75m in post 380 on this thread. Excellent but have yet to read the detail. Here we go to £6 ++.

[tazerface] 07/4/2022 07:17

Down down down

[tazerface] 07/4/2022 07:14

Results are stinking

[tazerface] 07/4/2022 04:31

Another red day today for this worthless dog

[fandagle] 06/4/2022 19:29

They were due mid March according to the Malcy interview, think June is the latest for release. It may be they are put back to allow multiple positive news releases.

[officerdigby] 06/4/2022 09:30

No date for results? What are they doing?

[anley] 04/4/2022 13:50

Seems that a few shareholders are looking for £6 per share.

I will wait ..........

[mariopeter] 04/4/2022 12:23

Golden cross on the 25 and 50 day moving averages intimates share price of over £6 soon. Would still be very cheap.




free stock charts from uk.advfn.com

[mariopeter] 04/4/2022 09:07

Could get rid of that divi restriction (Q11b production) on signing the Total deal too.

[mariopeter] 04/4/2022 08:59

Back dating of acquisitions bit of a headache. My view is if an acquisition is backdated then everything earned since that date should go through new Topco's profit and loss otherwise what is the point of saying it is backdated? That is not what happened at the interim results and bet this has given auditors something to think about. The same has happened for the Total acquisition. Dates of acquisition are 1st January in both cases and the later signing of the agreements reaffirms the earlier date as the acquisition date.

Someone has to bring results to income and sure should not be Tulip or Total imho reflecting the substance of the commercial deal.

Kistos benefitted so should pay the tax too.

Just being audit technical but if I am right then the interim's will be revised to what was disclosed as "proformas" ie profit way up.

[tigerbythetail] 01/4/2022 09:46

My take is that Putin NEEDS to get a reaction from the Europeans, because the war is going badly and the Russian economy is near collapse.
So, yes, the gas WILL be cut off in the next few days. Just to see if it weakens French and German resolve.
This spat really isn't about money (in any currency). It's about raw power.