Trinity Exploration & Pr... Share Discussion Threads

[wwick] 11/5/2018 08:06

Nice attention to detail WITJ and all, like it. Should that be RNS'd?

[mark10101] 11/5/2018 08:01

WITJ, I found this in the 6th March RNS, so even better than $1.1 and will feel like a windfall to TRIN, bye bye $1.4 of debt.



“The net debt position would have been even stronger but for the Supplementary Petroleum Tax ("SPT") arising in Q4 2017 of US$1.5 million and an accrual for property taxes which may be due in respect of 2016 and 2017 of US$1.4 million. However, this accrual may be reversed in H1 2018 if the bill currently before parliament waiving the property tax obligation for 2016 and 2017 is passed.”

[mark10101] 11/5/2018 07:38

Good spot WITJ, pop that straight into the debt repayment.

[whiskeyinthejar] 11/5/2018 06:53

Finance minister says no plan to make ppl pay 2016 or 2017 property tax. This saves us $1.1m.

Imbert:
"I wish to make it clear that contrary to rumor, there is no plan for retroactive application of this tax. Accordingly, the waiver with respect to the payment of property tax would be extended at this time to the end of December 2017, since it is our policy to collect the tax in the year that all of the required administrative work is completed, such as, for example, the valuation of 50% of properties in Trinidad and Tobago in various categories."

RNS:
"On 2 February 2018 the Property Tax (Amendment) Bill was introduced in the House of Representatives in the Parliament of Trinidad and Tobago, which seeks to make revisions to the Property tax regime. The amendments provide for a waiver of the 2016 and 2017 property tax liabilities. This bill is expected to be passed and assented to in 2018. The potential impact of this would result in a reduction in Property taxes accrued of $1.1 million."

[spellbrook] 10/5/2018 22:10

2018 mid- year budget speech by Minister of Finance Colm Imbert

[spellbrook] 10/5/2018 22:04

'On the road to economic revival'

[spellbrook] 10/5/2018 21:44

Imbert on mid-year review: The economy has turned around


In presenting the Mid-Year Budget Review, the Minister of Finance Colm Imbert said that turnaround in the economy is on the way and “we are witnessing a welcomed upturn...with turnaround in energy and non-energy sectors." He said economic growth is expected at 2% in 2018 and 2.2% in 2019.

According to Imbert, the Government has re-vitalised the energy sector thanks to significant discussions with upstream and downstream companies, both locally and abroad. The Ministry of Finance, he said, has also revised the oil and gas taxation regime.

In the non-energy sector, taxation collection has increased from $1.8 TTD to over $2B TTD while inflation rate has hit record lows with headline inflation dropping to 1.7% which he said is a direct result of the Government’s economic policies.The Minister claimed that this country’s inflation rate is currently well below the global average of 3.5%, including that of other oil-based economies such as Nigeria (14%) and Syria (32%).

“Our revenue projections for 2018 are on track” Imbert told the Parliament as he assured that Trinidad and Tobago is on the way to long term economic health as seen by the stabilization of the public debt, increases in foreign reserves and an increase in the HSF, despite withdrawals.

For these and other reasons, S&P confirmed the economic recovery taking place and an affirmation of T&T’s credit rating was provided. This is the first time in three years that T&T has not been downgraded, the Finance Minister boasted.

“Our new road network is at various levels of implementation. Additionally, citizens and tourists alike will soon be able to benefit from the new beach facilities at Maracas.”

Turning to health, Imbert projected that that the Point Fortin and Arima hospitals are expected to be completed in 2019 and the Government along with the UWI, the Government of India and InterHealth Canada are currently in discussions to operationalize the Couva Hospital.

“This administration has achieved what the previous government failed to do.”

The acquisition of bonds, land and shares in Republic Bank, Angostura, One Caribbean Media, MHI Ltd among others are hallmarks of Government’s success in the recovery of funds used in the CLICO bailout which cost the people of Trinidad and Tobago upward of $23B.

Furthermore, there has been significant progress in the areas of property tax and the establishment of the Trinidad and Tobago Revenue Authority (TTRA) which will function to decrease tax leakages and instances of tax avoidance. The country can also look forward to the introduction of Gaming Industry legislation in the Parliament at the end of 2018.

With respect to border control, the introduction of mobile scanning technology at the Pt Lisas port has already increased the level of security. Mobile scanners will also be installed at the Port of Spain port shortly, Imbert said.

“We are entering an era of macro-economic stability. The economy has turned around. Revenue collection is up. The non-energy sector is growing. The energy sector is booming.”

[someuwin] 10/5/2018 14:26

Malcy

Trinity Exploration & Production

Finals from Trinity which prove what a game changing year last year was for the company. I normally disregard figures as they are historic and the market should be concentrating on the here and now but for Trinity they are a perfect illustration of how the turnaround has gone and just how good the company looks now. Operating earnings are up 77% to $11m (6.2m) and operating margins are 24.3% (17.6%) which is mighty impressive even for a strong margin player like Trinity.Total 2P reserves are up from 21.25 mmstb to 23.21 mmstb whilst 2C numbers are better, rising 14% to 23.98 mmstb.

All this had a positive effect on the company’s cash and debt position, y/e net cash was $0.1m ( (38.6m) ) strongly building the balance sheet despite accelerated payments to both the BIR and the MEEI with only $5.9m of debt balances at the year end. All this was done with a massive increase of operational delivery, 37 RCP’s (0) and 97 workovers (63) were done and included reactivating idle wells and the resumption of swabbing activities. This meant that 2H production was up by 10% against the first half of the year.

Having said all that the company has moved fast since the year end and production is up again, at the end of the 1st quarter it was 2,721 b/d with full year guidance of 2,800-3,000 b/d. The company has recommenced onshore drilling with two new infill wells in Q1 which should come onto production in Q2 and the plan is to continue to deliver faster production growth over ‘ a largely fixed operating cost base’. This has the twin advantages of getting higher netbacks with ‘robust’ cash conversion and delivers up a near perfect combination of growing production with higher operating margins.

Trinity is being run enormously efficiently and with all these operational successes driving the profit, cash flow and margins, the scope for finishing the debt programme way ahead of schedule is extremely likely. At which stage management will have more funds to invest in what is one of the most efficient operating models in the industry, quite a thought given how well the company has done whilst times were hard…

[spellbrook] 10/5/2018 13:13

Trinity back in black as financial restructuring pays off
Written by Mark Lammey - 10/05/2018 7:00 am

[whiskeyinthejar] 10/5/2018 13:02

Not long to next scheduled news. Trading update with agm I guess :

"The Board currently expects to publish its annual report and accounts for the year to 31 December 2017 before the end of May 2018, with the Annual General Meeting ("AGM") expected to take place during June 2018."

[whiskeyinthejar] 10/5/2018 12:38

Bruce said last year in a presentation that he'd had plenty of approaches from companies looking to get involved as a farm out offshore partner. A FDP with even lower project costings and break even, should make it even more attractive.

I think the start of onshore drilling was postponed because the weather was particularly wet last year. Drilling is difficult when ground is water logged. Anyway, good news that they are looking to accelerate onshore drilling this year.

[bones] 10/5/2018 11:16

SPT reform actually happening would be a belter.

GO, any thoughts on what form the financing might take, viz:

“The Company continues to explore various options to strengthen its balance sheet further during 2018, with the intention of i) repaying the remaining amounts due to the BIR and MEEI; ii) redemption of the CLNs, and iii) accelerating the possibility of further Onshore drilling.”

(Obviously, selling West Coast would help but it sounds a slow process and no guarantee of it happening in 2018)

[mark10101] 10/5/2018 10:59

Fantastic post, seems there is not much any of us can add to that!

[fidra] 10/5/2018 10:11

At the 9c earnings a share( 7p undiluted) a share earnings we are really only on 4.1 times earnings and getting better for this year .looks a good deal here for shareholders .

[spellbrook] 10/5/2018 10:07

Trinity E&P
‏

@Trinity_PLC
16m16 minutes ago
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#TRIN $TRIN results: Cantors says management rescued company with astute negotiation of new credit agreements and a settlement with tax authorities. TRIN is well positioned to benefit from higher oil prices as it seeks to grow the production base and develop the offshore assets

[spellbrook] 10/5/2018 10:05

Trinity operating earnings surge 77%

[bones] 10/5/2018 09:44

Reserved = reserves (auto typo)

[bones] 10/5/2018 09:43

GO agreed. The elastic band holding us back right now is attached to the debts (BIR/CLN). Once it is clear that those will be gone by January 2019, that band will be released and the share price potentially will catapult, all else being equal.There is a mention again of looking at certain financing this year. Could this be reserved lending? I cannot imagine the board would want to tap equity again but then if the price is favourable and the purpose clear to shareholders, who knows?Looking good whatever IMO.