Incitec Pivot Ltd T.IPL

RE:RE:TheBridge

[firstworld]

Oct 2019 was 2 yrs into 4 YR project. 7 months later was 1/2 BN (14%) over budget. 7 months later there is no update. Easily another 500 MN over....these costed will never be recuperated and the plant will lose money forever zero hope of competiting with ROW without even more welfare subsidies. The closet customers for this stuff are 4000 km away I'm MX then even further in Asia and Europe, who are all way closer to established suppliers. There is a reason private sector did not build this on their own...welfare state continues

roberto146 wrote: In reading the 9/30/MDA, the project seems to be $500M over the original $3.5B estimate and about 6 months behind schedule, probably primarily due to the virus scare. Have there been other announcements?
The sale of about half the storage capacity for 700MM+ should cover this, and add the profit for the period between the sale of the asset and the closing date. Also, the reduction in dividend (I miss those many thousands in income!) has reduced the payout ratio by 3/4. FFO is $200M, about the same as last year. Sadly, it has been necessary for the dividend receivers to finance a lot of this, even the DRIP plan which paid dividends in paper. While it was booked as an expense, in reality it wasn't a cash cost.
Some people think it was wrong to get into the PolyPro business, but it is a huge market, and the first producer in Canada should benefit greatly when all is in place and things get back to normal, which they usually do. Governments and their politicians come and go, but nations carry on.
I think even in the medium term there are a lot of reasons to be optimistic, and because the policy of the company has always been to maximise dividend payout, the future should be positive for those holders seeking income once the huge FFO from PolyPro starts to hit. 
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Discl: Not holding right now, I sold at early Sept, having been in and out from the early days, and will get back in at some point. Are we due for another market crash? 50 to 1000 to infinite times earnings are looking a litte heady for the Dow right now).