KrisEnergy

[weijian]

hi piggo,
i read the article. There is nothing within the main passage that supports the 60-70usd per barrel figure in the conclusion. I would think that it is ill advised to be listening to PWC, an accounting body, compared to lets say, the oil majors whom have REAL skin in the game.

[piggo]

Believe PwC did sufficient research through surveys/audits etc of the service companies to reach their conclusion. They basically summarised what quite a few of the service companies are already doing i.e no groundbreaking recommendations.

Being in the industry myself, that $60-70 is also the general ball park (whipped out by old birds) figure and forecasts generally points towards improvements towards end 2017 / early 2018. Then again... it might just be delusions especially after enduring the pain for so many years. Some positivity is needed to justify current existence after all!

[CY09]

http://infopub.sgx.com/FileOpen/KrisEner...eID=432597

In the end, bondholders agreed to extend the maturity to 2022 at a lower rate, getting themselves pushed behind the queue with the new preferential offering and DBS amending its terms for its revolving facility. The overcapacity continues and we kick the can down the road.

Very interested to see Ezra's case come start 2018. Will its bondholders do likewise and banks amend their credit facility?

[specuvestor]

Backstop seems to be working as long oil stays above $55. Above $65 I think all the shale will come back again. $55-60 seems optimal

"KrisEnergy Ltd, backed by Keppel Corp Ltd and private equity firm First Reserve, said it would raise up to $203.6 million by listing its shares in Singapore, in a sign of improving investor sentiment for fund-raising in the city-state."

After the initial public offering, First Reserve will own a stake of 48.1 percent and Keppel Corp 31.4 percent of the company, the prospectus said
2013


same situation all over again?

First backstop from GLC:
(Bloomberg) -- Keppel Corp. says in talks with KrisEnergy to provide irrevocable undertaking supporting latter’s proposed non-renounceable, non-underwritten preferential offering of up to S$140m of senior secured zero coupon notes due 2024.

• Keppel owns ~40% stake in KrisEnergy through a wholly owned indirect subsidiary
  

History going to rhyme again?
http://www.valuebuddies.com/thread-1928-...#pid132185

[brattzz]

http://infopub.sgx.com/FileOpen/KrisEner...eID=432597

In the end, bondholders agreed to extend the maturity to 2022 at a lower rate, getting themselves pushed behind the queue with the new preferential offering and DBS amending its terms for its revolving facility. The overcapacity continues and we kick the can down the road.

Very interested to see Ezra's case come start 2018. Will its bondholders do likewise and banks amend their credit facility?

Yes is think so, now everyone is saying oil to go back to US$70, due to cartel cuts...

why lose money now when the story allows u to spin further 2018/19???

[CY09]

Spinning a story is one thing, actualizing it is another.

I am very doubtful if oil demand can catch up even with the decreased supply. Switzerland just opened a new railway which decreases goods travelling time and energy spent across europe.

On supply side, OPEC's agreed cut actually limits production to what OPEC was producing at start of 2016. Good luck to Keppel for trying to put a positive spin to it

[CY09]

Here is a mystery for buddies to solve!

KrisEnergy z240131- Krisenergy zero interest bond is priced at $0.437 and can be redeemed at par value ($1) when it matures in 2024. It shows how distressingly priced its bonds are. The market is pricing the fact that bondholders will have to take a haircut. That is a significant discount and investors can get about a 12% annualised returns from these bonds. Truly high yield returns for bond investment.

On the contrary, Krisenergy share prices is trading at 0.22 cents; indicating optimism.

Negative prospects from bondholders viewpoint while optimism from shareholders.

Who is right?

[PkNanas]

Here is a mystery for buddies to solve!

KrisEnergy z240131- Krisenergy zero interest bond is priced at $0.437 and can be redeemed at par value ($1) when it matures in 2024. It shows how distressingly priced its bonds are. The market is pricing the fact that bondholders will have to take a haircut. That is a significant discount and investors can get about a 12% annualised returns from these bonds. Truly high yield returns for bond investment.

On the contrary, Krisenergy share prices is trading at 0.22 cents; indicating optimism.

Negative prospects from bondholders viewpoint while optimism from shareholders.

Who is right?

Further this zero coupon bond is Secured Note as compared to other 2 unsecured Notes.

[asphodeli]

Here is a mystery for buddies to solve!

KrisEnergy z240131- Krisenergy zero interest bond is priced at $0.437 and can be redeemed at par value ($1) when it matures in 2024. It shows how distressingly priced its bonds are. The market is pricing the fact that bondholders will have to take a haircut. That is a significant discount and investors can get about a 12% annualised returns from these bonds. Truly high yield returns for bond investment.

On the contrary, Krisenergy share prices is trading at 0.22 cents; indicating optimism.

Negative prospects from bondholders viewpoint while optimism from shareholders.

Who is right?

I don't think you can price a zero coupon bond that way; FSM has done the maths and came up with a $0.45 "fair value": https://www.fundsupermart.com/main/artic...ond--12328.

With that said though, I exercised my warrants and trimmed my KrisEnergy shares, and bought the bonds, as the company will not pay dividends until all the zero coupon bonds have been redeemed.

Further this zero coupon bond is Secured Note as compared to other 2 unsecured Notes.

Erm...a secured note is better than an unsecured one...

[CY09]

http://infopub.sgx.com/FileOpen/KrisEner...eID=440343

Besides "Discovering Hidden Values', Krisenergy is discovering hidden pains as well in the form of impairment of its assets. Cash flow wise, the company is still bleeding cash. Without the support of bankers who provided them with an additional 100+mil of loans,Krisenergy would have fallen. Post Dec 2016, we know that Krisenergy since has been helped by a rolloer of bonds and an equity injection by Keppel Corp.

With NAV of Krisenergy down to US 0.17 or s$0.23, its down to how much more can the company bleed. With the infusion of 139.5mil, Krisenergy''s survival has been extended by another year. IMO, another capital injection may come in about 3 years time if the oil supply glut still remains

Another interesting event is that Krisenergy is now only backed by a banker, DBS after HSBC did not renew its loan facility; wonder if this can be considered a "backstop" as well