NZ Oil & Gas (NZO)

[boysy]

what about PPP i mean if you are talking about revenue in relation to market cap u cant look past ppp even if maitland is still a bit iffy

[fish]

Foodee is referring to the sp-a 5cent dividend would be very positive for the share price and would hardly dent the $300million war chest

[Nitaa]

Paying a dividend after raising funds, at a discount, is not a negative? Paying out money before the ongoing capital requirements have been determined is not a negative?

NZO has nearly $300M in the bank at a time when the world economy is very volatile. There will be opportunities to use that cash to advantage, but there is also significant opportunity for losses through ill-considered or ill-timed ventures.

It is time to relax and let the enormous Tui profits continue to accumulate, while the Kupe and Pike projects get ever closer to completion. Shareholder value is increasing at a great rate, as it has been for the last year or more.

Flooding the market with NZO shares has been very costly thus far for NZO shareholders. It will take time to recover, but eventually the market will see that assigning nil value to Kupe, and pricing Tui oil at $30 a barrel is not warranted.

Well said.

Biggest risk at present is commodity prices. Having said that, nzo i trading at a sigificant discount with nzo and its shareholders are well positioned right now.

[foodee]

Unicorn
Whenever possible I always read your comments as I
appreciate your thoughts and knowledge.
I certainly think any cos paying a div out of profits
is not a negative.
I am aware that NZO value is increasing, but is yet to be reflected
in the two entities div and sp, shareholders identify with.
In fact I have never sold any NZOG shares and I have
held longer than I care to think.

Cheers

[Nitaa]

Unicorn
Whenever possible I always read your comments as I
appreciate your thoughts and knowledge.
I certainly think any cos paying a div out of profits
is not a negative.
I am aware that NZO value is increasing, but is yet to be reflected
in the two entities div and sp, shareholders identify with.
In fact I have never sold any NZOG shares and I have
held longer than I care to think.

Cheers

foodee.

I have never been a dividend freak as i like to concentrate on co's with good growth prospects as well of course being able to fund the growth. nzo is an exception and beleive that divvies are going to be an annual event from now on for 15 or so years. I am not sure when co's normally announce but i guess when the annual report comes out is when it will be announced subject to a possible special dividend.

IMO the ones who are woried about the current sp are the ones who are looking to make a quick buck. However most medium to long term investors are ultimately only worried about what the sell at. What happens in between is largely irrelevant.

Investors whether its sharemarket or property largely dont give a toot what the short term does because they know that time is on their side. If you are a longer term holder then keep your finger off the sell button (even if nzo drops to $1.20 or so) and remember why you bought into nzo in the first place.

Short term what is happening is oil prices have dropped from close to $150 to under $120 (20% drop) along with negative sentiments in the global markets. Of course short term this is impacting among many other contributing factors.

The very big investors will be waiting for the (as dm calls it) the road kill where they will mop up grossly undervalued companies. There is plenty of opportunities at present and in simple terms compnies tied up to tui represent unbeleivable value. PPP and AWE offer great buying opportunities even if oil drops to around $70. Remember what AT bought ppp for last year and what price oil was. Not a lot has changed accpet oil prices are a lot higher now and reserves have increased by nearly 100% and production is going far better than expected. I hope that puts things into perspective

I might be stating the obvious but that my opinion anyway.

[upside_umop]

Ok, say they payout a 5cent dividend. Around $20 million...easy you say?
Sure, but then there will be the expectation of another 5cent interim..another $20 million.

NZO looks to have made around $140 million? after tax this year..so not too much from there. Next year that could more likely be $60 million. Would NZO really want to payout 2/3 of their profit? Not imo as thats not a reasonable proportion of profits...its most of their profits!

Anyway, all this talk is so speculative..DS has stated there will be no final. Lets just leave it at that and get 'suprised' and get the told you so's if they do at the annual...

Maybe we should start a poll...share buyback at low levels vs a dividend...

[Nitaa]

heeeeezzzzz baaacccckkkk

zorba. i noticed your friend miner is back.. this will be fun but now with Pike having its own thread i am sure he will pop up there more than nzo

[fish]

Ok, say they payout a 5cent dividend. Around $20 million...easy you say?
Sure, but then there will be the expectation of another 5cent interim..another $20 million.

NZO looks to have made around $140 million? after tax this year..so not too much from there. Next year that could more likely be $60 million. Would NZO really want to payout 2/3 of their profit? Not imo as thats not a reasonable proportion of profits...its most of their profits!

Anyway, all this talk is so speculative..DS has stated there will be no final. Lets just leave it at that and get 'suprised' and get the told you so's if they do at the annual...

Maybe we should start a poll...share buyback at low levels vs a dividend...

$140 million after tax=40 cents approx a share-? not much from there
DS has also said they would in future pay a reasonable percentage of profits as dividends-I am sure most investors would think 25% or 10 cents a share would not be unreasonable .
With the falling dollar and Tui producing well this years profits might not be too bad -suspect it will be more like 100 million than 60-but whatever figure there will be enough profit to pay out a good dividend.
This share has an incredible p/e ratio but the value of this share in times such as these will not be recognised by the market until a cash return is seen .

[fish]

Maybe we should start a poll...share buyback at low levels vs a dividend...

A share buyback doesnt make sense-for lots reasons not least a dividend could take advantage of the tax credits .

[shasta]

A share buyback doesnt make sense-for lots reasons not least a dividend could take advantage of the tax credits .

Actually Fish, with the company tax rate now 30%, those on the 33% & 39% tax rate are at a disadvantage when receiving a dividend.

A share buyback delivers equal benefits to all shareholders...

It also doesn't affect the tax paid, which can always be attached to dividends at a later date, as imputation credits.

NZO already has a dividend policy, to pay out 50% of profits, but after capital commitments have been considered.

So i take that to mean, unless surplus cashflows are"earmarked" for capital committments, they will be paid out as dividends...

I don't believe NZO have changed there dividend policy, though i stand to be corrected!