From the March 04, earnings release. "Generated distributable cash flow of $18.2 million in the fourth quarter of 2009, up from $13.4 million in the third quarter of 2009. "
"....We moved aggressively to manage costs and in the fourth quarter, distributable cashflow rebounded from the depressed levels of the second and third quarter as shuttle tanker operating expenses began to reduce and we completed the acquisition of the Varg FPSO. In 2010, we expect higher cashflows from both the existing shuttle tanker fleet as we continue to improve profitability and the Varg FPSO because of higher oil production. "
So in 4th qtr, if my calculation is right ( $18.2 million DCF for 30.2 million shares, should be about 1.30 in voverage ratio which is suppose to improve as per the company in 2010.
So shouldn't the stock move higher ? All analysis welcome.
Reading between lines,completed the acquisition of the Varg FPSO. The only reason last Quarter was profitable was acquisition. That being said new wells and activity should make 2010 profitable. The managing partner, will make more deals available to...TOO if cash flow is needed for Div.. The revenue of Varg EPSO has a 11 year life. As I understand deal. TOO is in Infancy . The managing partner is going to make it a success. I have a lot of it, along with TGP. I will buy more on weakness of market psychology in 2010-11