High Arctic Energy Services Inc T.HWO

Turn Around

[impega]

The turn around (recovery) in HWO's business continues at an excrutiatingly slow pace. While recovery looks certain, the pace can certainly try one's patience. The one positive is that re-mobilization of the remaining rigs will be able to be done from cash flow, and not a drawdown of cash.

So I guess we continue to wait. Hopefully they use the NCIB to some extent this year.

[Stonksonlyup90]

Management would be idiots not to utilize the NCIB... but then again, they have hardly used it in the past year - so maybe they are!

[DudeRancher1953]

Perhaps management are looking at the future capital requirements of the expected expansion in LNG and don't want to risk being in a position to have to issue new shares at low share prices.

[Stonksonlyup90]

If there are future capital requirements, they should fund out of cash flows! Where the requirement is greater than cash flow they should finance with debt (especially debt denominated in PNG currency if they are forced to use PNG currency on future contracts) - the debt financing would provide a natural hedge.  ^All of the above likely goes over the head of the incompetent Finance

[AVALONSHARK]

The situation with this company is so bizzare. 1. During the conference call, Mike said all cash is in interest bearing accounts making 4.5-5%. This translates to more than $2 mil in interest income. Their current div distribution is $3 mil. They can easily bump up the dividend just with the interest amount. 2. Just based on the call and the absence of any long term strategy, it is clear that

[DudeRancher1953]

Bizzare is appropriate.  My take on CC is that only 1 rig operating this year and probably only same 1 next year. So how is management addressing this situation? I don't have a clue except maybe we'll just wait around until the business returns. JMO

[Stonksonlyup90]

Management has to go if they are going to continue to sit on their hands. I wonder what kind of pathetic excuse they can come up with for not executing on NCIB. It appears that Cyprus Holdings are asleep at the wheel here. They don't have an agenda and are okay with this managements pathetic performance over the last 8+years?

[JonathanJSmith]

We'll see what Maguire has to say on the CC this afternoon. I'm hoping for some guidance regarding contracts for the other rigs. Perhaps he'll give guidance on Q123 since it only has 3 days left? The way they've been writing off assets lately will result in a book value sub $2 by the end of this year if things continue this way. Way to use that NCIB Maguire! Your acumen is second