Pan Euro Share Discussion Threads

[mark1000] 10/9/2013 00:13

I keep an eye on this share I give management great credit for what they have achieved over the last 2 years it will be even better to see it reflected in cash generation in the accounts. On the downside the bad debt write down was at least a year late in being properly provided in the accounts I am surprised the auditors let them get away with it. Like CJohn I think the current share price is a fair reflection but Rosebunker being solved can change everything.

[pantastic] 09/9/2013 23:13

Good research there (as always) - cheers AAA

[aaainvestment] 09/9/2013 17:26

I also came across the linked article this weekend whilst surfing the net, it's about a new mayor oil terminal for Rotterdam, backed by demand to satisfy Russion oil exports. Although PAN are not linked to it, it demonstrates the demand for the services PAN provides in Rotterdam - demand appears to be nowhere near satisfied, and IMO PAN have the skills and contacts to exploit that demand.

We have tended to focus on the new Dan Balt terminal recently but lets not forget Rotterdam is a major money earner and they recently expanded capacity that has not yet had an impact on any published results but I suppose should contribute to the interims, which I'm expecting to show pretty good progress.

[aaainvestment] 09/9/2013 16:47

The sooner they sell Rosbunker the better, unless of course they take on a new partner, Rosneft would do fine.

Rosneft are rumoured to be a potential investor in Kaliningrad and particularly the new deepwater port which is apparently back in the cards.

It was reported in the Russian press over the weekend that the port has at long last found an investor - that is a major shift, all previous attemps to get the thing off the ground have lacked a private sponser.

Might not involve Rosbunker, but Baliysk is one of the favoured locations (ultimate location is still supposedly under review by the Government) and Rosneft where linked with the development a couple of months ago - buying out Rosbunker would be peanuts to them and if I where guessing why they would be interested it would'nt be for the ferry or container operation.

Even if it doesn't directly involve Rosbunker, a deep water port will increase activity in Kaliningrad and help Baltic Top, I agree with PAN about Baltic Top, it's a little Gem and should not be sold.

[pantastic] 09/9/2013 13:08

I share your view on Rosbunker. The solution I'd be most happy with would involve PAN selling their 50% share and bagging a nice stash of cash for it. I'd prefer that to a new partner coming onboard. Which options are available to the Board and which is chosen, we just have to wait for.

I don't share your view on Baltic Top though. I think this is a nice little facility that was very swiftly recovered from the criminal Russians and control fully maintained since. It's a wholly owned asset and appears to have pretty much monopolised the local market and now just needs to increase margins a little more now the competition have been eliminated. I think the Company should keep hold of this asset and I don't think that the Company have any plans on selling it.

I don't think it's a good idea to bundle Rosbunker and Baltic Top together just because of the geography.

[cjohn] 09/9/2013 11:49

Hi Pantstastic,

It's a matter of temperament. I don't disagree with much of the detail of your above remarks. Of course, braodly speaking, yours is a view I share. But you're highly unlikely to see me singing about it. I'm a full time assets-based value investor. Almost never get excited about shares. (I used to when I started: I didn't find it a helpful state of mind.)


The receivables saga is indicative of the difficulties of doing business in Russia and is of course in addition to the flagrant criminality of which PAN has been victim at Rosbunker. I'd personally like PAN to get out completely from Rosbunker (and Baltic Top at the right price.) The best to hope for at Rosbunker is the sale of our share of Rosbunker to some organisation with the physical and legal muscle to retake control of the 50% of Rosbunker which our former "parteners" ie criminals are occupying.

Give Rosbunker zero value and these don't excite me on asset grounds. (I'm well aware of the improved trading.) But say we get 10 or 15m sterling for our 50%, then this is transformational. What's more it will free up management time and reduce legal costs, improving cash flow.

I'm very glad the company is now accounting more rationally for Rosbunker. I frankly found it embarrassing that they and brokers were headlining very positive eps figures, when these profits were going straight into the pockets of Russian criminals. It's clear from conversations I've had on this board - and one in real-life with a PAN investor that some small investors didn't look beyond those headline fingures and were misled. Not good.


Our cost of capital is still very high. The potential dilution of debt vesting as shares does not reduce this. Sale of Rosbunker would. My feeling is that our cost of capital will also come down if and when there is positive cash flow.


Keep up the posting and I'm always happy to hear sunnier views than my own.


Regards CJohn

[pantastic] 07/9/2013 13:37

This is such a different business with different customers to that which it was 3 years ago.

The company has one loan, against Dan Balt that is very manageable. Prior to that it had little or none. Quite unusual for AIM. Cost control is tight too. The loan can be converted to shares. which were, until the other day, at a premium to the share price. The company has landed several deals recently, all with major companies - it no longer bothers itself with the little boys. The question about written off cash receivables was answered very assuringly at the AGM explaining the money owed was against the old business model not the current one. The company holds little inventory but holds customer stock such as oil which is security against amounts owed. If the customer does not pay they risk having their bills paid in oil as a last resort. Quite low risk for PAN.

Rosbunker is priced in at £0.00. The market has written it off but the Company have more than one deal on the table to change that, with a self imposed deadline of April 2014.

I am positive and confident as I have pretty much drawn a line through the pre-suspension business and view progress from that point forward. If you try doing that you might share at least some of my optimism but as always DYOR, YMMV and WTFDIK?!

[cjohn] 07/9/2013 12:53

Blimey Pantastic, I can't help feeling you are the one of the most optimistic individuals I've ever come across on these boards, which is saying something. It makes a refreshing change to my own engrained pessimism (realism, in my view), of course,

I would never have put money in here, if I couldn't see a very significant potential uplift to the then Price (20p + and topped up in the low teens when they relisted). But please remember, there is very significant risk involved here. Rosbunker is totally unpredictatble and there is significant debt on PAN's balance sheet. Trading has been patchy in the past and there's no sense in imagining it can't be again. Remeber too, these haven't generated positive cash for some years. If and when they start to do that, I'd expect some Price appreciation. I might even go in heavily myself.

[rivaldo] 05/9/2013 08:39

Nice to see a 15k buy move the price up 0.5p...

[pantastic] 04/9/2013 21:36

2x50k sells earlier ...

The two 50k sells, if not a transfer into an ISA or SIPP are short sighted. If a seller he might be kicking himself soon. I realise if the shares were bought at 15-17p then there was a nice easy profit there but I don't feel its sell/slice time yet - there will always be those selling into rises but this is a tiny rise in the big scheme of things. I am sure I remember seeing about 30% rise in one day in the past. I also appreciate this can fall on small volume just as easily as it rises but I am confident there is decent support.

Fortune favours the patient. And don't we know what 'patient' means??!!!

[pantastic] 04/9/2013 21:19

CJohn - with the recent Dan Balt improvements, as of H2 this year and next year I can see current MCAP being value of Dan Balt alone. That's without PBI and Baltic Top (and the potential £22M easter egg that Rosbunker might be). Your ramping may vary. i have been known to get carried away. I am just really bullish Dan Balt since the post AGM presentation Mr Escott gave.

We don't know the specifics of the Rosbunker deal/deals being considered but even if we discount (our, informed) expectations 50% it's a gamechanger once sorted. But in the meantime the european ops and Baltic Top are starting to print money.

Look at the value of the new and improved Dan Balt facility and what it would cost to have started from scratch. Genius acquisition and integration there by the company. Some jammy timing and opportunism but it wouldn't have amounted to the same by chance. The words 'strategic' and 'dynamic' are still underused when discussing PAN. The company has the ability (by not being very big) to change and adapt to chase changes in these (usual cyclical) markets.

Always interesting to discuss these things.

[cjohn] 04/9/2013 18:57

Thanks rivaldo for copying across the Sisyphus post.

We await news on Rosbunker. Until then, these look fairly valued to me. ie strip Rosbunker from PAN's assets and I wouldn't be putting money in here. But there's a chance something CAN be recovered from Rosbunker. Any significant sum/ deal would, in my view, make a material difference to the prospects and share price

[rivaldo] 04/9/2013 11:36

Moved nicely up whilst I've been on hols. Hopefully the interims will be out on Monday or Tuesday morning, giving the whole or most of the week for the market to react.

[silverlandfinance] 03/9/2013 15:38

I tried to buy 40000 shares at 21.25p but missed it.
The interims last year and in 2011 were on the 4th of September, so hopefully the interims will be this week

[geraldton1] 03/9/2013 15:23

Its starting to spring to life a bit....20.5/22p and not much stock around at all. Roll on the interims! Hopefully it will get some renewed interest then. I'm expecting a decent set of figures and confident outlook statement.

[pantastic] 23/8/2013 13:32

The photo slides from Simon Escott's presentation after the AGM on Wednesday are now on the Company web site

hxxp://www.peterminals.com/media-centre/press-releases/2013/23-08-2013

[pantastic] 22/8/2013 13:12

I'm glad someone posted that across here - I was about to make reference to it myself. It's spot on and a very informative post.

[rivaldo] 22/8/2013 12:48

Cheers pantastic, sounds encouraging.

Excellent post on LSE from Sisyphus which I hope he won't mind me copying here (I've put in paragraphs to break it up a little!):

"Hi WLH - didn't get to meet you at the AGM - pity you had to dash. Thought it was very constructive [apart from Victor Meldrew in the audience :-)].

We really do have the traction to generate good profit this year. The company has indeed transformed itself over the past three years and we need a good PR team on board to explain what we do and how we do it. Many potential investors will think terminals = storage and that could not be more misplaced. We have purchased storage facilities and have upgraded to trans-shipment which is much more lucrative.

The contract with Monjasa is a phenomenal coup and understated to say the least as most people do not understand bunkering [nicely explained by Simon yesterday]. To have negotiated the deal to tran-ship fuel [and mix on-site] before releasing for bespoke vessel refuelling is massively relevant to a step change in our growth. The fact that we have involved a supply chain from Klesch ]hxxp://www.klesch.com/oil/klesch-petroleum] in our Dan Balt enterprise is highly, highly relevant as is the [guess who] oil major now using PBI facilities for air-mixed fuel bunkering. These are lucrative and bespoke contracts with a high barrier to entry since we 'handle, mix and levy fees for the process' whilst not actually owning the inventory!

This is the future and we are in at a time when the maritime freight cycle is ascending from a low point. Bunkering/fuel mixing facilities will be needed in excess of current capacity and we are a highly flexible company to fulfil those needs. Expansion of this growth strategy is a formality IMHO. Pan European is in the process of tranforming the process of trans-shipment and bunkering of fuel using SOTA german negative-pressure pumping equipment with high transfer capacity. Bring it on. Rosbunker is the treasure-chest in the closet - the future growth is assured at Dan-Balt/PBI/baltic Top."

[pantastic] 21/8/2013 16:02

Seemed positive to me. I would be a buyer if I had cash.
Very tight lipped about Rosbunker but European ops sounding very good. New pumps and other improvements at Dan Balt sound very good to me. This Company cannot stay down at 20p much longer. Stupid share price!

[rivaldo] 21/8/2013 15:22

AGM RSN out and all resolutions passed. Hope the mood music was good pantastic.

[rivaldo] 16/8/2013 10:37

Moving back up now....looking forward to your notes from the AGM next week pantastic.

[smokyjoe] 14/8/2013 17:48

Nice one Pan;-) Can you ask them what their view of the current share price is and, if like us, they feel PAN is Waaaay undervalued what plans they have to improve shareholder interest ? oh yeah, and ask them where my bloody divi is !, lol.

[pantastic] 14/8/2013 17:26

PAN is a strange one - sometimes we tick up (or down) on tiny volume and other times big trades come in and nothing moves at all.

It would be good to catch the MMs with their pants down and holding very few shares when the interims come out - even more so when (ok, if and when) positive Rosbunker newsflow comes out.

Sadly, I remember previous instances where there were very few shares available and all they did was limit buying to £50 worth of shares or something silly, rather than ticking up the bid and ask and trying to create a market.

Anyone who thinks this is a level playing field and/or an exact science are much mistaken.

Still... it's a week until the AGM and less than a month to the interims so I am expecting a few people to be taking positions now. That said, many of us have been positioned for a long time now!

I'll be attending the AGM next week and hope to get a feeling for general sentiment.

[rivaldo] 14/8/2013 15:22

Nice move up on a 32k buy. Not much stock around again methinks.