Maybe a good play with rising Ukraine Gas prices:
KUB (CAD) / TPNEF (USD) looks even better with Ukraine Gas prices rising to 18,000 MCM (valuta is UAH). 18,000 MCM in September (Cubic Meters, Before VAT/Taxes) according to the table on the website and last quarter was an average of $6.50 MCF (Cubic Feet, After VAT/Taxes) in the MD&A Q2. This was with an average 9,400 MCM (April - June) on the website. Meaning Gas prices will be up with 66% in Q3 (upcoming numbers) compared to Q2. KUB uses no hedges.
In Q2 2021 KUB made 500K USD profit. RK field with electricity was only online for half the quarter, 100K profit, but using the numbers it can be 200K USD so 250K CAD in profit. This means that the Gas business was 500K CAD profit with all 'fixed costs' included and September is more than double the Gas prices (after VAT/Taxes).
I look forward to next Quarter (Q3) with the average at 15,600 MCM (July - September) compared to 9,400 in Q2. A 66% increase.
Please use the link for Ukraine Gas prices: https://www.ueex.com.ua/eng/exchange-quotations/
October prices (Q4) are booming!
Furthermore, they just had an update to sell their 35% interest in KUBGAS (East Ukraine). So they will be focused on clean books, RK field with electricity they want to expand, gas assets in the West, while having de-risked from the East of Ukraine.
https://finance.yahoo.com/news/cub-energy-announces-letter-agreement-132300219.html
So this should be strong earnings in Q3 and then clean books when this sales deal closes, de-risking from Eastern Ukraine. Trading below Cash and Equity (not taking into account the RK field in the books) after this deal. I believe the cash will mostly be used to further develop the RK field.
Looks to me to be trading below the cash level after this deal is finalized. RK field is not in the books.
Good article on rising gas and electricity prices in Europe. Winter still has to come. Looking good for KUB. https://oilprice.com/Energy/Natural-Gas/Europes-Energy-Crisis-Is-Driving-Up-Natural-Gas-Prices-Worldwide.html
Submitted October 02, 2021 at 12:44PM by Dragoon1311 https://ift.tt/3mgEFCF
