Incitec Pivot Ltd T.IPL

IPL - a story of higher risk vs higher reward

[downwithdotcom1]

major risks outstanding is all about their poly plant now under construction....risks include:
-cost overrun driven mostly by time delay /COVOID 19 costs
-commissioning/start-up issues-will it work?? (ii understand their is alot of new design advances in this project). More important-will it work reliably?? (for those that want to challenge,just look at Alberta's newest refinery (forgot the name) CNRL just declared this refinery fit for commerical service after 2 years of commisioning issues...
-offtake contracts-IPL has been stone silent on where they are securing guaranteed customers-which i suspect is giving them all sorts of financing grief. 
Company has made alot of moves all in the name of risk management-tried to sell their storage unit if it made a certain threshold dollar-lots of initial interest then COVOID hit and then no takers (division is doing well due to hi utilization but its being offset by market uncertainty). IPL then advertised for a partner-again, lots of interest but its a mega project under constructionin a middle of a pandemic- i expect alot of low ballers maybe thinkin' a little blood is in IPL's waters...
Finally, cut the dividend 72% , a BOLD move indeed as an infrastructure play is built around a rock solid predictable payout (rule is - you can raise but you must NEVER, NEVER cut the dividend in this business) . I believe PPL has done all it can-if it gets a partner , if it sees clarity on its start-up and if/when annoucements can be made on offtakes -the dividend goes back AND IN SHORT ORDER goes up with new source of revenue,  this will be a $30 + stock. look to 2021 and we shall see...reards, dwdc