Big Banc Split Corp T.BNK

The economics just will not work...

[dbeaude]

Does not Alpetrol not get it? If the onerous tax structure was imposed on Bankers or any company for that matter, the business model is severely comprised. The rate of reinvestment is diminished at higher crude prices (which clearly shows lately is the only time that investment dollars are available to increase production) so in effect the operating company is hog tied financially so production would stagnate and even decline to the dumb Albanian government would be shooting itself in the head (rather than the foot). Wesley Clark should be accompanying French to see these yahoos. There is only so much juice in the orange and the orange has little to no juice left. If Bankers had have been making out like bandits, they would have had not debt by now and a great big bank balance and rifling money out of the country in the form of fat dividends to foreign equity holders. It is six of one....a half dozen of the other....either let the company reinvest in operating income back in the field development and build production into a cash flow generator that will eventually cause income tax to be paid or take measure like this highly stupid one and shoot the golden goose in the head and watch the bullet leave the other side of the goose's head right into the head of the Albanian government. Every cent the company has made (plus borrowings and equity raises) has gone right back into investment in Albania....bunch of stupid b a s t e r d s

[braincloud]

Well said DB. Perhaps they do get it but don't have the skill or resources to act quickly? Wishful thinking? This country is one of the poorest in eastern Europe. The p Last thing they need is for BNK to layoff people and to see tax rvenue drop. I hope that's all it is. Nobody is that stupid. Again, I hope this is all about political posturing nothing more. I expect that French will be

[bmeister2]

Agree with you BC on the post by Dbeaude as being bang on, no pun intended, on his analogy to shooting onself in the head, but I still say this is by far our worst crisis. We can mitigate oil and water with technology but how do you mitigate stupidity, fraud, corruption and falsehoods that characterize banana republics and can effect overall investments by a company in the country. This week might

[braincloud]

I know. I'm with you. Having read a bunch of articles this morning using Google to translate. the article from Tirana Times seems to sum up things , without the loss of translation. Most of what I read recognizes the fact the BNK must recover expenses before a Profit Tax can be paid. So at least that! I'm not even thinking that this is any more than political posturing because , like I

[ynothisname]

I sure hope it is just that, a "political snafu", but its not looking good. Storage capacity there is quite minimal and without a place to sell, the "curtailing of production" is likely already underway. Give this another 24-48hrs and if this is not settled, operations will have to be wound down quickly.

[bmeister2]

My sentiments fully. This has got to be resolved quickly, and cleanly,I might add so as not to mar an overall decent relationship to this point. The longer it lasts,the more each side has to lose, so I hope this is where we are at today with each side,but especially the Albanian politicans not losing face. It is a game all right,but it only can have losers, no winners. Let's hope,gang.

[LordIskander]

The optics of the recent reforms are such that the current administration now has to be seen going after the big business, so the substience level merchants stop protesting for having to file receipts/taxes with the tax man. I mean mom and pop over there are complainining that they can't even afford to pay for a cash register which they are now forced to purchase (although subsidized).