Sdx Energy Share Discussion Threads

[34adsaddsa] 12/4/2023 00:39

Only if they liquidate or sell the company.

If they continue the strategy of the last 5+ years then it will continue to go down because the strategy destroys value.

[tnt99] 09/4/2023 19:50

Think this must go up in the end valuation of company is pants

[djj2014] 03/4/2023 17:56

Oil price up, SDX down

[jas2022] 17/3/2023 15:04

I see captain oil and gas jay who spent the last 2 years failing at nuog within recycling and moulding plastic for ships ie no relevance to oil and gas has now seen almost 20pc off the value of tour investment since taking over. I did warn you. This tool destroys sps.... Just look at aminex, someone said he went on stress leave. I did warn you.

[winnet] 08/3/2023 11:24

odd isn't it? Unless there is some great deal being worked out in the background, its money for old rope this one... seen it before at GBP where the execs just cash their pay checks but nothing ever happens and the share price dies a slow death

[djj2014] 01/3/2023 18:23

When the buyout was first announced, we then seemed to get a series of positive RNS's. Aleph spoke up and helped get the deal rejected and despite owning a quarter of the business, we hear almost nothing from them now.

[34adsaddsa] 01/3/2023 17:15

The buyout should absolutely have been accepted if the alternative is a steady as she goes strategy. Every year this company continues on that path destroys value.

[djj2014] 01/3/2023 15:38

It's been a boom time for oil and gas markets and SDX just plods along. Maybe we should have accepted the buy out?

[jas2022] 01/3/2023 07:34

Good old jay rns that.... Everything tomorrow. Maybe he should update holders his recent 2 years success with nuog that was omitted from his glowing bio

[chrisdgb] 22/2/2023 16:13

Thought we would have seen more action from the new shareholder group by now...???

[tnt99] 07/2/2023 21:16

When do we get results?

[hopeful holder] 05/2/2023 15:11

I'm down 80% here, so value has been repeatedly destroyed over and over. Salary and share price performance should e combined and linked in full with all directors pay....

[jas2022] 31/1/2023 14:29

Good to see jay has only taken 10pc off your market cap since appointment. He destroyed 99.99pc of his past company (nuog which was omitted from his intro bio) in no time at all.

[tnt99] 26/1/2023 14:48

When do we get some news

[tnt99] 20/1/2023 18:05

This should double from here lol in my opinion

[winnet] 17/1/2023 14:58

Love the fact you stop by every few weeks TNT and utter the words "this should double from here". Like a broken clock, you'll be right once!

[tnt99] 05/1/2023 09:32

This should double from here

[ashkv] 04/1/2023 15:57

Something to monitor re Egypt - interesting article from the FT



‘There are no dollars’: foreign currency crunch hits Egypt’s economy
Cairo says banks will soon be able to help importers clear backlog of goods at ports worth $9.5bn

Heba Saleh in Cairo JANUARY 1 2023


With foreign currency in short supply in Egypt, Rafik Clovis spent December anxiously waiting to find out whether his bank would be able to provide the $67,000 he needed to fund the import of a consignment of car parts from Europe.

But by the end of the year, the dollars were still not available; as a result, his imports in 2022 were just a tenth of a normal year’s amount.

“Conditions are catastrophic,” Clovis said. “There are no dollars and I have no idea how it will be resolved. I have five employees, and now we are surviving off what we made in previous years.”

The importer’s predicament is shared by many businesses as Egypt struggles with a foreign currency crunch. The first three weeks of Russia’s full-scale invasion of Ukraine in February led to $20bn of outflows from the Arab world’s most populous country as foreign portfolio investors rushed to safe havens.

Despite $13bn in deposits from the United Arab Emirates, Saudi Arabia and Qatar and another $3.3bn in asset sales to the UAE in 2022, foreign currency has remained in desperately short supply for the import-dependent country.

A week ago President Abdel Fattah al-Sisi said banks would secure the foreign currency necessary to clear a backlog of imports within four days, without going into detail. According to Mostafa Madbouly, the prime minister, $9.5bn worth of goods are still held up at the country’s ports.

The Ukraine war’s inflationary impact on prices for basic commodities such as wheat — Egypt is the world’s biggest importer of the grain — has added to pressures on the country’s foreign currency resources, forcing the Central Bank of Egypt to devalue the pound in March and October. Inflation in November reached 18.7 per cent, its highest rate in five years.

For the fourth time in six years, Egypt has had to resort to the IMF, which last month approved a $3bn loan over four years. At the heart of the agreement is a commitment by Cairo to move to a flexible exchange rate regime in which market forces determine the currency’s value — something Egyptian governments have long resisted.

In an effort to conserve foreign currency, the CBE placed restrictions on imports in March. The requirement to use letters of credit slowed the process and created a backlog of unfulfilled demand for dollars. It also prioritised access, placing basic commodities such as staple foods and medicines at the top of the list. The CBE cancelled the requirement to use letters of credit on December 29.

The two devaluations have reduced the pound from around E£16 to the dollar to E£24.7. The black market rate is even lower.

The CBE increased interest rates by 300 basis points on December 22, taking the overnight deposit rate to 16.25 per cent. The rise surpassed analysts’ expectations and reflected increasing concern about inflation and the falling pound, according to London-based consultancy Capital Economics.

Businesses from poultry farms to car manufacturers have been badly hit in a country that imports most of its food and many of the inputs for its industries. As policymakers ponder when and how to move to a flexible exchange rate regime where the value of the pound is not propped up by the CBE, entrepreneurs complain they have no visibility on the future.

“We are working day by day,” said the head of a poultry-based business who complained that shipments of grain, mainly soya and corn, used for feed, were stuck at ports because of the dollar shortage. “Every day we have to find feed, and we sometimes run out and the birds are not fed.”

He said the agribusiness had had to “depopulate” some flocks by selling birds at a loss before the age at which they were usually sent to market. “The price is way below cost and we know some of our competitors have had to kill chicks,” the executive said. The “substantially” lower supply of chickens being sold for meat had increased prices by more than 50 per cent, he added.

Mohamed Abu Basha, head of macroeconomic analysis at Cairo-based investment bank EFG-Hermes, said the shift to a flexible exchange rate could not “happen overnight” and that the authorities needed to “ideally first build up a buffer of foreign currency to help clear the backlog of demand” before moving on the exchange rate.

Farouk Soussa, economist at Goldman Sachs, outlined the difficult options facing Cairo as it sought to build up liquidity to deal with near-term demand for dollars.

“The CBE could clear the market by continuing to raise rates, floating the currency and restricting the money supply, but the implications for prices and growth are problematic,” he said. “The authorities’ preferred option is to wait for inflows from the Qataris, the Emiratis and the Saudis to buy assets in Egypt, but that is also uncertain.”

As policymakers weigh up the options, the outlook for many businesses is uncertain. A senior manager in a multinational auto components company said his business had fared better than most because it was also an exporter, giving it access to foreign currency. But those reserves were being depleted and the company was unsure whether to accept new orders.

“I am not certain that I’ll be able to clear imported inputs for a new order and have to pay thousands in [holding fees] as I wait for dollars,” he said. “If my supplier abroad agrees to defer payment and I can get the goods out of the port, maybe the dollar will have gone up by the time I have to pay.”

He added: “It is also possible the automobile manufacturer I am supplying here will have problems because [supply] of a different part has fallen through, so there is no final product and we all fail.

[jimboau] 23/12/2022 08:05

Well & truly screwed now then as the new incumbent with abysmal track record appears to be looking at a fund raise after todays appointment? Lifestyle company for those involved (past & present) and there is now just just a new batch of pigs ready to feed at the trough and bleed it totally dry?

[tnt99] 22/12/2022 19:25

I agree the accounts releases are to benign why not use some more exiting comments moving forwardBoring boring boring is my takeHowever should double from here on the numbers

[winnet] 20/12/2022 10:02

Hi GB, Apologies for the delayed reaction, not reading this boad too often these days. Very much agree with the final remark you made... "it's cheap, for good reason"

I think we need to see a trading update. Dissecting the numbers in the annual reports is hard as they are always so retrospective - the major problem I have with accountants!

Yes, they are using that EBRD fund for G&A... However, I don't think there is anything like the GKP situation going on [funds being short or withheld], it's probably just poor administration.

The chap they've put in place seems unpopular, but he needs to be given a fair crack of the whip. It would be wrong of us to turn on him given he has barely got his feet under the table. My view he needs a transformational strategy, either an aquation, or RTO, or some form of diversification. We cannot keep drilling to stand still, despite the successes we have had this year we languish at 8.5p. There seems little point in keeping CAPEX at current levels to keep paying salaries, but never rewarding loyal [or stupid, you choose] shareholders like me.

[gb904150] 14/12/2022 11:43

hi winnet,

I held SDX prior to the Tenaz energy buyout that didn't happen. I sold out as soon as it got near to the proposed t/o price. However, Tenaz did see plenty of value at up to 12p which is a positive.

Now we're down at 8.7p that should be even more compelling.
Aleph taking 25% stake should also be positive.

As negatives I have:
new director appointments are very unpopular - especially Jay Bhattacherjee. Seems to have a dreadful track record

none of the BOD have any decent stake.

Most of all - on stockopedia Mark Simpson pointed a key statement from recent results - RNS's on Aug 18th (3+6 months) and 17th Nov (3+9 month) results.

As a result of various geopolitical factors, US dollar transfers by the Central Bank of Egypt have been delayed resulting in the need to draw the EBRD facility to pay head office G&A and certain US$ dominated operational expenses. Under the existing facility with the EBRD, US$3.2 million of additional undrawn lines remain available to the Company.

In the 17th Nov results they added this statement:

It has been possible recently to repatriate funds, albeit this has incurred FX trading costs. Under the existing facility with the EBRD, US$0.2 million of additional undrawn lines remain available to the Company.

In short - it is hard getting money out the country and they are relying on EBRD debt to fund G&A.

August RNS says they had $3.2m still available.
Nov RNS says they had $0.2m still available.

But Nov RNS says they managed to get some out (how much!) but incurred FX costs (how much?!).

So for me - there's quite a bit of uncertainty on getting money out the country as well as a BOD of questionable talent and track records.

Yes, SDX is dirt cheap, but it appears to be so for good reason.

What's your take on things?