skc
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- 12 August 2008
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This is the cover page from the RCY AGM presentation... can anyone see what's wrong with this picture? (Answer below)
Overall the company is not doing so well. Harrdly enough revenue to cover operating expense, let alone interest. Monthly cash shortfall is $7.1m. They need a standstill arrangement by end of this year or it's good bye to equity holders and big chop for the debt holders The arrnagement (if granted) will give them 6 months until after airport link is open and see if traffic will improve. IMO, clinging on hope of the airport link to rescue is not realistic at all - if Brisbane motorists are not willing to pay a toll to cross the river, why would they be inclined to pay 2 tolls to use airport link AND the Clem7?
And let's put the traffic in perspective. Toll revenue last quarter was $4.4m. Op ex $8.5m and Interest $19.3m. This means revenue need to increase 6x just to breakeven!
I am actually extremely surprised that there is still $10m equity value on the market. Even if they get the standstill they want surely the existing equity holders will be wiped out completely...
The answer to the picture question:
These cars are way too close to be actually moving together at speed. They also all carry some sort of a badge on the lower right corner of the windscreen. My guess is they are cars of employees asked to post for a photo. And that highlights the sad state of affairs - they can't just take a picture of the tunnel's usual operating condition for use as cover page...
Overall the company is not doing so well. Harrdly enough revenue to cover operating expense, let alone interest. Monthly cash shortfall is $7.1m. They need a standstill arrangement by end of this year or it's good bye to equity holders and big chop for the debt holders The arrnagement (if granted) will give them 6 months until after airport link is open and see if traffic will improve. IMO, clinging on hope of the airport link to rescue is not realistic at all - if Brisbane motorists are not willing to pay a toll to cross the river, why would they be inclined to pay 2 tolls to use airport link AND the Clem7?
And let's put the traffic in perspective. Toll revenue last quarter was $4.4m. Op ex $8.5m and Interest $19.3m. This means revenue need to increase 6x just to breakeven!
I am actually extremely surprised that there is still $10m equity value on the market. Even if they get the standstill they want surely the existing equity holders will be wiped out completely...
The answer to the picture question:
These cars are way too close to be actually moving together at speed. They also all carry some sort of a badge on the lower right corner of the windscreen. My guess is they are cars of employees asked to post for a photo. And that highlights the sad state of affairs - they can't just take a picture of the tunnel's usual operating condition for use as cover page...
