Some Info on the ODL PipelineScrew Long player, he might was well be called Short Player, as as far as CGX/FEC are concerned as he has written a number of negative articles on both. Here is some good info on the ODL Pipeline 35% owned by FEC and it has been publicly annnounced that FEC's 35% interest is for sale along with the Bahia Port..
The Oleoducto de los Llanos Orientales (ODL) pipeline, a joint venture between Ecopetrol and Pacific Rubiales (now Frontera Energy), was commissioned in 2009 and cost an estimated $560 million USD to build.
In 2023, the Oleoducto de los Llanos Orientales (ODL) pipeline generated $285 million in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This substantial income highlights the pipeline's significant contribution to the region's oil transportation infrastructure.
I think it very significant that the 65% owner of the pipeline is Ecopetrol, the state owned oil company. And the cost to build today would be at least double or more, from 15 years ago, plus the time to get the permits and would todays green government even allow a pipeline permit.
Any investment that cost $560Mil to build 15 years ago and is still generating amost 50% profit in EBITDA, wound seem to have significant value. Even a 35% ownership interest should attact interest with that type of $$ return with relatively small operating cost compared to an oil operation or a port.
On a stand alone basis, what do you guys think the port and the pipe line could sell for? Surely far more than the current approx $500 Mil market cap.