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PetroKazakhstan Inc. (PKZ) Message Board

  • adman7707 adman7707 Aug 1, 2005 5:48 AM Flag

    Talkng about inventories and earnings

    Really, with the Gas Flaring procuction cuts with any normal stock you simply go on hold until the production cuts are over. But on this message board Finance and Rosy, and everyone that posts are still worried about what earnings would be this quarter and the next three quarters. This is with Gas Flaring production reduction.
    W reall just need to simply be calm and wait until these are over .

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    • To me, PKZ's performance during these depressed times are important because it's a good indicator of what it will be when full production resumes. If we can make $1.85 in Q2 2005, imagine what it will be in Q3 2006 with no hedging, China/Kaz pipeline savings, production at 170,000 bpd, and oil prices at $60. That's an increase of $8 in oil price, $7 savings in transportation cost, 60% increase in production and no hedging losses. That has to add up to at least a double in net income to $15+ per share. The bidders better bring some cash to the table.

      • 2 Replies to bigdeefl
      • BI said specifically on the cc that the 7$ pipeline savings is not going to be given to PKZ...only a small portion. There is a number on the table so they will further negotiate. I guess 0.7$ for PKZ will be a good number. The pipeline builders want their money back first and quickly. Regards Janos.

      • Yes, but you better get ongc, ptr, cnooc, and the rest of the companies biddings attention to our message board bideefl.
        I actuslly think if there are any bids at first that they will not include all the earnings, gains from no hedging, and full production in there initial bids. PKZ will review them and simply turn them down, and let us know.
        So they would have to come up with a meaningful bid closer to Bernies, what I call, "true value". In fact the only way we would probably know about any bid fast, that to low for PKZ to accept, was because the bidding company let their own shareholders know for theit benefit.
        Al the things you, Rosy, finance, and everyone talks about, I doubt any large company will take into consideration.
        Another thing is this: Any company taking those things into consideration, will actually be short on the bid considering those items, simply since PKZ is not earning them yet. So the bidding will actually start lower on even what you, finance, and rosysmile give as next year earnings.