FormerXBC Inc XEBEQ

RE: XBC won that big $114m project some time ago

[Gann999]

Inflation is mainly being caused by gas prices the wholesale gas price at the start of 2021 was roughly 56 cents per litre by the end of 2021 the wholesale price was roughly 87 cents per litre 55 percent higher than the start of 2021. About 3 months into 2022 the wholesale price spiked to 1.20s per litre more than double the price of early 2021. We now sit at mid 1.40s mind you this is for wholesale prices but still about 65 percent higher than end of 2021 this tells me that inflation will ease in the second half of the year as long as gas prices do not spike more from current levels. When xebec announced the the 120m order we were already experiencing wholesale gas prices around 1.05 so they would have accounted for these elevated costs in the order already. They will not be doing this order at negative margins.

mingzhu wrote: i am wondering if it can increase the price, say $120m amid high inflation. If not, it will be in big trouble. Either it gives up the the project or does it in negative margin like current legacy projects. 8.8% inflation will likely eat off your gross margin entirely. Somebody should ask CEO.