Pharos Energy Share Discussion Threads

[stepone68] 07/12/2023 12:45

Yes, 30p would mean that EE would very nearly have tripled his money since first buying almost 25 years ago. Mind you, the ones he bought after the 'fess up' post will still be quite a bit underwater. Like mine :-(

[oilinvestoral] 06/12/2023 21:48

"We look forward to continuing to deliver such returns in 2024 and beyond, supported by our prudent approach to financial management and capital allocation for the benefit of all stakeholders."I wonder if the "the benefit of all stakeholders." Was a dig at a certain shareholder who has different capital allocation plan to Jann & Sue!

[geckotheglorious] 06/12/2023 10:15

Nigelpm,

Agreed,but it'd be a great exit for those who have given up on this dog with fleas..

[cwa1] 06/12/2023 08:33

controlledmadness

If either of those trades were routed through the order book you MIGHT have suggested that-but since they were just "ordinary" buys then I'd say "no" to that personally

[nigelpm] 06/12/2023 08:31

Nice RNS - and with Bradley's stake I think all the ducks are lining up for a 30p+ bid - wouldn't be great to long term holders but it's a tough market.

[nigelpm] 06/12/2023 08:30

No - usually dividend reinvestment.

[controlledmadness] 06/12/2023 08:26

would I be correct in assuming that early buys of 5 shares and selling 30 shares are attempts to manipulate the share price?

[cwa1] 06/12/2023 07:25

Interesting:-

Dividend and buyback announcement:-



Interim Dividend Declaration & Continuation of Share Buyback Programme

Interim Dividend



In the Company's Interim Results announcement on 13 September 2023, the Company indicated an additional distribution to shareholders would be considered within the parameters of the sustainable regular dividend policy announced in September 2022. Under the policy, Pharos intends to return to shareholders by way of dividend no less than 10% of Operating Cash Flow (OCF) each year in two tranches:



· An interim dividend of around 33% of the previous year's final dividend, payable in January of the following year; and

· Subject to shareholder approval, a final dividend payable in July of the following year.



Consistent with the policy, the Board today announces that it has resolved to declare and pay an interim dividend in relation to the financial year ending 31 December 2023 of 0.33 pence per ordinary share, amounting to approximately $1.8m. The estimated total cost of the interim dividend assumes that the trustee of the Pharos Employee Benefit Trust (EBT) will waive its right to receive the dividend in relation to the ordinary shares held in the EBT.



The key dates for this interim dividend are as follows:



• Ex-dividend date: Thursday 21 December 2023

• Record date *: Friday 22 December 2023

• Payment date: Wednesday 24 January 2024



* Only shareholders on the Pharos Energy plc register of members as at close of business on the record date will receive the interim dividend.



Continuation of share buyback programme



Following the initiation of a share buyback programme to purchase $3m (excluding stamp duty and expenses) of the Company's ordinary shares in July 2022, and the commitment of a further $3m (excluding stamp duty and expenses) to an extension of the programme (the First Programme Extension) in January 2023, we are pleased to announce that we expect to complete the First Programme Extension around the end of the year. As at close of business on 5 December 2023, a total of 19.8 million shares have been repurchased by the Company during the initial phase of the programme and the First Programme Extension, at a daily average price of 23.7 pence.



The Board believes that the Company's shares are still trading at a material discount to their underlying net asset value, and remains of the view that on-market share repurchases is an appropriate means of returning value to shareholders while this remains the case. Therefore, the Company intends to continue with the share buyback programme in 2024 by committing a further $3m (excluding stamp duty and expenses). This further extension of the programme (the Second Programme Extension), is expected to commence following completion of the First Programme Extension.



As with the initial share buyback programme announced in July 2022 and the First Programme Extension announced in January 2023:



• the Second Programme Extension will be conducted in compliance with European Union (EU) Regulation No 596/2014 (MAR) and the MAR buyback technical standards (Commission Delegated Regulation (EU) 2016/1052) (the Technical Standards), both of which form part of Retained EU Law as defined in the European Union (Withdrawal) Act 2018;

• the Company will not seek to rely on the safe harbour conditions for trading set out in Article 3(2) and Article 3(3) of the Technical Standards, given the limited liquidity in its ordinary shares and the limitations that the conditions would impose on the number of shares that can be purchased;

• ordinary shares purchased under the Second Programme Extension will be cancelled; and

• Peel Hunt LLP, the joint broker to Pharos, will manage the Second Programme Extension and carry out on-market purchases as principal, with the authority to enact purchases and make trading decisions concerning the timing of the purchases independently of the Company. Details of any and all purchases made under the Second Programme Extension will be provided via RNS announcements and published in the regulatory news section of the Company's website.













Jann Brown, Chief Executive Officer commented:



"We are delighted to announce the interim payment for 2023 under our dividend policy, which underpins our commitment to regular shareholder returns. In addition, the Board believes that the Company's shares continue to trade at a material discount to their underlying net asset value and has committed a further $3m to the share buyback programme.



"We look forward to continuing to deliver such returns in 2024 and beyond, supported by our prudent approach to financial management and capital allocation for the benefit of all stakeholders."

[oilinvestoral] 05/12/2023 00:29

To clarify, he can vote them out without replacing them but the shares would have to be suspended if they didn't have the required number of directors as per listing rules

[oilinvestoral] 05/12/2023 00:25

As per the stock market listing rules & articles of association he can't vote out directors without replacing them (unless he decides to keep enough directors from the existing BOD). The company has to have a minimum number required under the Articles. I expect him to put forward & suggest his own team. The letter will probably read as follows: Bradley Radoff Launches Consent Solicitation to Remove and Replace Majority of PHAR's BoardCurrent Board Continues Track Record of Value Destruction, Poor acquisitions and Operational and Strategic MisstepsStockholders Cannot Afford to Wait until Annual Meeting in July 2024– Urgent Change in Majority of the Board is Needed NOWBradley Radoff has identified 5 experienced professionals to replace 5 of the incumbent directors of PHAR. Our highly-qualified director candidates possess a strong mix of corporate governance and international energy industry experience, as well as corporate strategy and capital allocation expertise. The nominees include:MR XMr T Mr YMrs VMr Z

[richalert] 04/12/2023 21:00

Thankyou for your clear response Al. You have better information to hand than I have, and you've done your research. I have no previous knowledge of Bradley, but would certainly lend my support on a resolution to replace the management.
If this were to happen, who would be responsible for finding and appointing replacements?

[oilinvestoral] 04/12/2023 20:05

As BR is a related party, from memory I believe he would need 75% of the votes to vote in favour to enable anything to pass. A simple majority won't suffice ... My concern wouldn't be BR tabling a cheap TO offer. I don't think he's in the business of buying & running oil companies. He's in the business of making money. So while he may ask for a BOD seat, I don't expect him to want the whole company taken private. He might push for a sale but given his average is probably around 23-25p , I don't think he would be keen at anything in the 20s or 30s IMHO! The question is : what is his strategy. That question was asked in the webinar in September and Jann (for what it's worth) replied with there is there is no plans to change strategy. Since he has been aggressively buying I have a feeling he would prefer a bigger share buyback programme as he probably thinks the shares are undervalued. He knows Egypt well and I am sure he would have some plans for Egypt whether a divestment / asset swap or further farmout. I doubt he would want more cash flow sunk into it! One thing we do know (with a fair degree of certainty) is that he voted AGAINST the re-election of Jann & and Sue at the AGM. So his next move might be an GM requisition along with an open letter to shareholders asking for the management team's removal. This is what he wrote to the Vaalco board when he was a large holder! https://www.businesswire.com/news/home/20151106005485/en/Group-42-and-Bradley-Radoff-Launch-Consent-Solicitation-to-Remove-and-Replace-Majority-of-VAALCOs-Boardt

[richalert] 04/12/2023 19:22

Thinking on, if I believe in my assumptions, I should be buying now, to try to minimise my losses.

[richalert] 04/12/2023 19:20

Yes. The worry is it gets sold off for less than we are probably hoping for. But for Bradley it will be a nice little earner. Might happen anyway, even if Bradley wasn't involved. I've been in this situation before.

[bonkers3] 04/12/2023 13:18

Anyone with more knowledge than me care to mention what the main risks are to us PIs as Bradley continues stake building? At what point will he join the board?
What is likelihood in due course of him taking the company private on the cheap and prematurely from PI perspective so to speak?

Response’s appreciated from a long term holder at the back of the class.

[cwa1] 04/12/2023 12:16

Excellent news. Is a nice Xmas present possible here? ;-)

[oilinvestoral] 04/12/2023 10:09

Hi Yasx I'm tempted to agree re: timescales. The alluded to the possibilities of further extension on Block 125. They also laid the groundwork for excuses. Rig contracts apparently are keen / willing to engage on a 1 well campaign. Sirprising because rig utilisation is mowehere near 100% in SEA region. They mentioned needing a partner in the area who already has a rig (to reduce mob costs). Said partner must have deep water drilling experience etc etc. That narrows down the list considerably.I'm not keen on them drilling a shallow water well on their own as that would eat into the money available for buybacks & divis! With all that being said, the shares should be 50-70% higher on TGT & CNV alone!

[oilinvestoral] 04/12/2023 10:01

Bradley Louis Radoff just issued another TR-1 and now owns 14.1% of PHAR. Management need to start delivering or get ready for P45s IMHO !

[tiswas] 04/12/2023 10:00

Who is Radoff and why is he buying?

[yasx] 22/11/2023 07:17

OilAl,

It is true that their financial position has improved to the extent a buyback/dividend can continue. However, there are many good opportunities in the market right now and leisurely progress at Pharos is not one that will se the world alight. I continue to hold but am actively considering my stance. Radoff has not pulled the trigger and I doubt Pharos will work on 135 by H1 25. If you listen carefully to the recent presentation, reading between the lines they do not seem to ve close to securing a partner yet.

[rolo7] 09/11/2023 13:08

No trade today!?

[yasx] 06/11/2023 09:56

I suspect 125 will not make any progress until 2025 at the earliest. There is no sign of a partner and I doubt any announcement on that will happen within the next few months.

Once the buyback is finished then Jann will have to figure out what her next 'initiative' will be - I still cling to the hope that Jann is booted out within the next six months. Surely (assuming he has not already sold) that will cause the dud from Kent to sell out since he thought Jann was perhaps the best in the industry.

[yasx] 06/11/2023 09:25

Thank you Al - will take a look.

Cramer is the ultimate contrarian indicator - I think he often does it knowingly since he surely can't believe the guff he spouts. Perhaps he may be right for once.....

Our very own Cramer from Kent is, however, unlikely to get anything right - his portfolio consists of Scancell, Global Pet and Pharos, all he was purchasing and recommending at their all time highs. Long way to climb, and of the three only Pharos looks like the one with a chance of of recovering some of his considerable (percentage) losses.

[yasx] 01/11/2023 12:27

Afternoon OilAl,

Have not seen the questions nor replies (do you have a link to the same), although I recall they did not answer any of the questions I submitted during the presentation.

As for the former failed politician, his track record of failures continues. He had three investments he declared as being buy and hold indefinitely: Scancell, Global Petroleum.

We all know what happened to his investment in Phaaros, but sadly for him the other two have gone the same way. Global, which over the years has provided good volatility for trading, looks like it is set to go bust fairly soon and frankly was never an investment in the first place. It was just a promotional tool to entice mug punters to pay the salaries of the Board which is what the failed politician has ended up doing with his buy and hold strategy at 1.50p against the current 0.05p. He needs three thirty baggers to break even on the above bunch of woefully mismanaged Co's.