Posted by sheldon > 2018-12-03 11:11 | Report Abuse

TQ Jon Choivo

Posted by Parttimer > 2018-12-03 17:09 | Report Abuse

sleepy zzz

Posted by sheldon > 2018-12-04 11:39 | Report Abuse

Wow - Legal suit against Petron in excess of RM109m!

What are their chances of winning?

Posted by PassiveInvestor > 2018-12-04 13:49 | Report Abuse

where did you get this info?

Posted by Choivo Capital > 2018-12-04 13:56 | Report Abuse

I think he means petron phillipines.

That one they are arguing with pnoc on supply.

Posted by sheldon > 2018-12-04 14:57 | Report Abuse

bursa announcement ...

Kuala Lumpur High Court Civil Suit No : WA-22NCvC-773-11/2018 Konsortium Lord-Saberkat Sdn Bhd (Plaintiff) v Petron Malaysia Refining & Marketing Bhd (Defendant)

Petron Malaysia Refining & Marketing Bhd ("Petron") wishes to inform that Petron was served with a Writ and Statement of Claim from the solicitors of Konsortium Lord-Saberkat Sdn Bhd ("Lord Saberkat").



Previously, Lord Saberkat had filed a writ against Petron based on allegations that Petron failed to pay Lord Saberkat for the works and tasks that were allegedly ordered by Petron and were allegedly carried out by Lord Saberkat per the Standard Transportation Agreement No. 2005-01FM dated 19 December 2005, as amended ("Agreement") between Petron and Lord Saberkat ("the First Suit"). This Agreement was for the supply of transportation services by Lord Saberkat to Petron for the delivery of fuel to Petron's service stations in Peninsular Malaysia.



Petron refers to the announcements to Bursa Malaysia Securities Berhad made on 3 November 2014, 30 June 2015, 14 July 2015, 21 July 2015, 24 July 2015, 10 December 2015, 6 January 2016, 8 November 2016, 15 December 2016 and 10 January 2018, in relation to the First Suit.



For the First Suit, the High Court on 30 June 2015 dismissed most of Lord Saberkat's claims and subsequently both Lord Saberkat and Petron separately filed an appeal against the judgment of the High Court. The Court of Appeal heard the two appeals together and dismissed Lord Saberkat's appeal and allowed Petron's appeal. Lord Saberkat then filed a motion to seek leave to appeal to the Federal Court and this motion was dismissed by the Federal Court. Lord Saberkat then filed for motion to review the Federal Court decision and was also dismissed by the Federal Court. Subsequently, Lord Saberkat filed a motion to amend the Order made by the Court of Appeal dated 10 December 2015 and was also dismissed by the Court of Appeal on 24 September 2018.



Lord Saberkat has since filed an application for leave to appeal to the Federal Court in relation to the dismissal by the Court of Appeal, which has been fixed for case management on 20 December 2018.



Lord Saberkat has now filed a new claim against Petron allegedly over a breach of contract in relation to the same Agreement ("the Second Suit").



The claims filed by the Lord Saberkat pursuant to the Writ and Statement of Claim, as pleaded therein, are as follows:



a) Damages amounting to RM109,183,517 particulars of which consists of the following :

Loss of Orders amounting to RM62,732,065;
Loss of Profit amounting to RM24,126,724; and
Depreciation, Loss of value of Lord Saberkat's dedicated fleet of road tankers amounting to RM22,324,728
b) General damages;

c) Interest on damages from the date of the Writ until satisfaction of the judgment at such rate as the Court deems fit;

d) Costs; and

e) Such further and other relief as the Court may deem fit, just and equitable.



Petron has intructed external counsel to act on its behalf and Petron will defend its position and take all necessary legal action as deemed appropriate. Petron strongly denies that there are any such breach of contract and claims as alleged by Lord Saberkat.



Petron does not expect or anticipate any impact to its finances or operations as a result of this Second Suit.

Posted by Choivo Capital > 2018-12-04 15:33 | Report Abuse

Oh this one. Should be dead in the water.

Posted by Choivo Capital > 2018-12-04 15:46 | Report Abuse

http://www.kehakiman.gov.my/judgment/file/W-02(NCVC)(W)-1237-08-2015.pdf

read the previous judgements here.

Posted by sheldon > 2018-12-04 16:37 | Report Abuse

tq again

Posted by Fabien Extraordinaire > 2018-12-04 17:45 | Report Abuse

alamak, drop so little only.

was hoping such news can freak ppl out.

Posted by Choivo Capital > 2018-12-05 09:59 | Report Abuse

Haha. Im waiting below 7 or 6. Top up a little by little.

Don't want it to reach 30% size too fast haha.

Posted by RainT > 2018-12-05 11:18 | Report Abuse

@choivo

Why invest in PETRONM? ?

Don't you feel that oil price is too voltile and is very tiring to follow up and keep track ??

Posted by Choivo Capital > 2018-12-05 14:02 | Report Abuse

I dont care about the oil price or the crack spread. The changes in those prices, have very little effect on my estimate on the intrinsic value of petronm.

I wrote something on refineries.

https://choivocapital.com/2018/11/28/an-estimate-on-the-real-refinery-...

Its on HY, but some is applicable to petronm. I'm not talking much about the economic moat of Petronm, although felicity did write a bit on it.

Why? I havent buy enough. With my margin facility, i can reach my size right away, but i like buying slowly first, and keep rereading the accounts for the last 5-6 years, just in case i forget anything.

Up to you. What i'll say is, its currently 15.5% of fund. If im right, i'd like it to be 25% -30%.

Posted by Fabien Extraordinaire > 2018-12-05 15:20 | Report Abuse

i'm quietly and patiently waiting below 7.

Jon, please don't write anything more on Petronm. Thanks!

Posted by Choivo Capital > 2018-12-05 16:00 | Report Abuse

haha same same will diam.

Do you any perspective for hibiscus.

Posted by sheldon > 2018-12-06 10:04 | Report Abuse

I agree Chiovo that oil price change has little bearing on the Co's fortunes.

In fact a drop would be better because even though the inventory held is marked down, Petron's downstream namely aircraft fuel will earn fatter crack spreads in the longer run when inventory is replenished.

Car petrol spread is government regulated so the spread is somewhat stable.

Posted by Choivo Capital > 2018-12-06 10:17 | Report Abuse

Yeah,

In general, a drop will definitelly cost a little on a net basis. Because derivatives do not cover with perfection. They usually aim to cover most, but not all. (if a company covers way more than the inventory etc, chances are they are now speculating on them, and its not just for the operations of the business.

There may be a slight timelag in crack, but this is really just conjecture.

At the end of the day, the above statements have very little bearing on the long term economic power of the company. They just need to be done right. If not done properly, we get that 900m stockholding loss in hy in 2014.

Having said that, the absolute best refineries are those that have the financial strength to never need to hedge. At the end of the day, the results from hedging over the long term is a negative. Hedging cost more than 4% of the underlying inventories per year, easily.

But very few can do that, due to the strong dividend payouts. Except for the ones under berkshire hathaway.

Posted by sheldon > 2018-12-06 15:13 | Report Abuse

Actually I stand corrected as aircraft fuel will be priced based on market price.

It's the lubes, gas and other products which are stagnant in prices that earn fat spreads when crude price is down.

Posted by sheldon > 2018-12-06 15:15 | Report Abuse

BTW - managed to strike 1 at 6.97

Posted by Choivo Capital > 2018-12-06 15:17 | Report Abuse

Haha, nice. I'm thinking about it. Since its margin/borrowed money after. Best to be more conservative.

And i keep wondering what did i miss out on.

Only thing i don't like, is i dont have the figures for marketing seperately. But at this valuation. Well..

Posted by trulyinvest > 2018-12-06 17:00 | Report Abuse

all support broken... rm6 on the way

Posted by Choivo Capital > 2018-12-06 17:24 | Report Abuse

Looking forward to that.

Posted by sheldon > 2018-12-07 11:44 | Report Abuse

This Co can afford to pay a pretty good dividend given the good run of profits of late to pacify shareholders for the poor price.

That will give Petron shares an added boost in demand.

There's enough reserves and cash to pay 30 sen which would amount to RM40.5m.

Posted by sheldon > 2018-12-07 15:05 | Report Abuse

heng yuan showed a loss in the latest quarterly

Posted by Choivo Capital > 2018-12-07 15:06 | Report Abuse

Look closer.

===
Posted by sheldon > Dec 7, 2018 03:05 PM | Report Abuse

heng yuan showed a loss in the latest quarterly

Posted by yfchong > 2018-12-08 07:55 | Report Abuse

Should be OK.... Let's go

Posted by yfchong > 2018-12-09 18:41 | Report Abuse

Game changer....

Posted by Jaya > 2018-12-10 00:22 | Report Abuse

Fall some more please

Posted by yfchong > 2018-12-10 16:07 | Report Abuse

Fall...... Timber......

Posted by yfchong > 2018-12-10 17:21 | Report Abuse

All the way down...

Posted by Jaya > 2018-12-11 00:22 | Report Abuse

Choivo
Thanks for your comments, you peddling shit la

Posted by yfchong > 2018-12-11 17:21 | Report Abuse

All low...

Posted by sheldon > 2018-12-12 10:39 | Report Abuse

Caught a falling knife at 6.72!

How low can it go!

Posted by yfchong > 2018-12-12 10:54 | Report Abuse

6.50

Posted by trulyinvest > 2018-12-12 11:15 | Report Abuse

rm5 coming

Posted by Choivo Capital > 2018-12-12 12:30 | Report Abuse

With luck.

1 sen.

===
sheldon Caught a falling knife at 6.72!

How low can it go!
12/12/2018 10:39

Posted by mamatede > 2018-12-12 15:16 | Report Abuse

Whats the next support? RM6?

Posted by trulyinvest > 2018-12-12 16:19 | Report Abuse

negative refining margin... warning...

Posted by Fabien Extraordinaire > 2018-12-12 16:43 | Report Abuse

free fall. no support.

1 sen coming


Posted by mamatede > Dec 12, 2018 03:16 PM | Report Abuse

Whats the next support? RM6?

Posted by TakeProfits > 2018-12-12 17:37 | Report Abuse

Wah, this good stock free fall? Why, anyone of you sifus please,tell.is why?

Posted by yfchong > 2018-12-12 18:26 | Report Abuse

Just wait lah....

Posted by kong73 > 2018-12-12 18:57 | Report Abuse

Mampus

Posted by yfchong > 2018-12-12 20:12 | Report Abuse

OK mampus.... To find bottom fishing

Posted by yfchong > 2018-12-12 23:26 | Report Abuse

Here patience...

Posted by yfchong > 2018-12-13 11:01 | Report Abuse

Hit... 6.5

Posted by yfchong > 2018-12-13 11:01 | Report Abuse

Some where near

Posted by sheldon > 2018-12-13 11:24 | Report Abuse

Oh dear WTF!

Posted by yfchong > 2018-12-13 11:34 | Report Abuse

Wti

Posted by sheldon > 2018-12-13 11:36 | Report Abuse

market has advanced for 2 days but my horses are running backwards - haha

Posted by yfchong > 2018-12-13 11:40 | Report Abuse

Tiger resting