Proactiveinvestors Australia Chagala Group https://www.proactiveinvestors.com.au Proactiveinvestors Australia Chagala Group RSS feed en Sat, 20 Jul 2019 09:01:27 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Chagala Group sees 2017 earnings, revenue decline impacted by economic slowdown in Kazakhstan ]]> https://www.proactiveinvestors.com.au/companies/news/200842/chagala-group-sees-2017-earnings-revenue-decline-impacted-by-economic-slowdown-in-kazakhstan-200842.html Chagala Group Limited (LON:CGLO) saw its underlying earnings (EBITDA) and revenue decline in 2017 impacted by an economic slowdown in Kazakhstan.

The London-listed investor in specialist services and facilities providers to the oil and gas industries in Kazakhstan saw its EBITDA fall to US$6.4mln for the year ended 2017, down from US$7.7mln a year earlier, as revenue declined to US$19.1mln, down from US20.3mln.

READ: Chagala Group reaches settlement with TIPP Investments

The firm saw its net profit edge up to US$0.9mln, from US$0.8mln in 2016, while total assets fell to US$87.7mln, down from US$92.1mln.

Svetlana Mendesh, Chagala’s chief financial officer, said: "At a time when global uncertainty, economic slowdown in the region and unstable financial markets continue to challenge the industry we operate in, Chagala Group achieved strategic objectives set by stakeholders, and delivered the required operating and financial results to continue into a healthy future.

“This solid performance and the stability of our growth continue to make Chagala Group a partner of choice for shareholders and clients.”

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Mon, 16 Jul 2018 09:19:00 +1000 https://www.proactiveinvestors.com.au/companies/news/200842/chagala-group-sees-2017-earnings-revenue-decline-impacted-by-economic-slowdown-in-kazakhstan-200842.html
<![CDATA[News - Chagala Group reaches settlement with TIPP Investments ]]> https://www.proactiveinvestors.com.au/companies/news/199572/chagala-group-reaches-settlement-with-tipp-investments-199572.html Chagala Group Limited (LON:CGLO) said it has reached a settlement with TIPP Investments PCC in relation to TIPP’s ownership of Chagala shares.

The real estate company said that TIPP would procure a special purpose vehicle that would make a voluntary unconditional offer to acquire all the shares of the company for cash at a price of US$2.15 per share.

READ: Chagala Group receives cash offer from AIMS

Chagala specified that TIPP has not agreed to make the offer itself but instead had agreed to procure the SPV that would then make the offer.

The firm added that the offer constituted a “significantly higher” price than that offered by Asian Investment Management Services (AIMS), who offered to purchase the company for US$1.55 per share on 20 June.

Chagala advised that, given this information, shareholders should not accept the AIMS offer and instead to await an offer from the TIPP special purpose vehicle.

The firm added that the completion of the transaction would constitute a full settlement of all claims arising from the proceedings and that the parties were in the process of negotiating a more extensive agreement and taking steps to satisfy the conditions and perform other tasks which must be completed before any offer can be made.

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Tue, 26 Jun 2018 10:04:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199572/chagala-group-reaches-settlement-with-tipp-investments-199572.html
<![CDATA[News - Chagala Group receives cash offer from AIMS ]]> https://www.proactiveinvestors.com.au/companies/news/199206/chagala-group-receives-cash-offer-from-aims-199206.html Kazakhstan-based accommodation group Chagala Group Limited (LON:CGLO) has received a cash offer at US$1.55 per share from a major stakeholder.

The offer is from Asian Investment Management Services (AIMS), which holds an 11.3% stake in the company.

READ: Chagala Group adds to Kazakhstan portfolio​

The offer will remain open for acceptance for a period of 21 calendar days from the date on which the company forwards the offer letter to its shareholders; Chagala said the letter will be on its web site - www.chagalagroup.com/investor-relations/investor-presentations – from 10.00am today.

The directors are standing on the sidelines on this one, making no recommendation as to whether shareholders should accept the offer.

READ: Chagala Group shares suspended as publication of 2017 accounts delayed pending audit completion

Trading in Chagala's shares was suspended at US$1.25 at the beginning of May pending the completion of the audit of its 2017 accounts.

 

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Wed, 20 Jun 2018 08:38:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199206/chagala-group-receives-cash-offer-from-aims-199206.html
<![CDATA[News - Chagala Group shares suspended as publication of 2017 accounts delayed pending audit completion ]]> https://www.proactiveinvestors.com.au/companies/news/196135/chagala-group-shares-suspended-as-publication-of-2017-accounts-delayed-pending-audit-completion-196135.html Chagala Group Limited (LON:CGLO) has requested a suspension in trading of its shares as publication of the company's audited consolidated accounts for the year ended 31 December 2017 will be delayed beyond 30 April 2018 due to a delay in completion of their audit. 

The London Stock Exchange main market-listed firm – which provides specialist services and facilities to the oil and gas industry in Kazakhstan – said the audit is currently expected to be completed by 15 July 2018.

READ: Chagala Group fighting low oil prices and other battles

The group said in a statement that the delay in completing the audit does not reflect any issues concerning the underlying trading or economic position of the company, which has continued in line with the board's previous expectations.

It also added that there are no matters in connection with the delay in completing the audit which, in the view of the board, need to be brought to the attention of shareholders.

As a consequence of the expected delay in the publication of the 2017 accounts beyond the four-month period from the year-end stipulated by the Financial Conduct Authority, the company said it has requested that its share-listing be suspended from today until the account’s publication.

Chagala added: “The imperative of the Board is to minimise the delay in completion of the audit and a further update will be given as soon as the Board is in a position to do so regarding the expected date of publication of the FY 2017 Accounts.”

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Tue, 01 May 2018 10:10:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196135/chagala-group-shares-suspended-as-publication-of-2017-accounts-delayed-pending-audit-completion-196135.html
<![CDATA[News - Chagala Group adds to Kazakhstan portfolio ]]> https://www.proactiveinvestors.com.au/companies/news/188350/chagala-group-adds-to-kazakhstan-portfolio-188350.html Caspi Limited, one of Kazakhstan-focused Chagala Group Ltd’s  (LON:CGLO) portfolio companies, has signed a short term lease on a new property.

Chagala specialises in properties used as accommodation for oil workers in the Caspian region and this is a one-year lease agreement with Tengizchevroil (TCO) for a townhouse residential complex in Saraishyk.

READ: Chagala Group increases interim profits

TCO participants include Chevron (50% interest), ExxonMobil (25%), KazMunayGas (20%) and LukArco (5%). 

Francisco Parrilla, Chagala Group chief executive, said: "We are delighted to see TCO becoming part of our partners with our most special product".

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Wed, 06 Dec 2017 09:54:00 +1100 https://www.proactiveinvestors.com.au/companies/news/188350/chagala-group-adds-to-kazakhstan-portfolio-188350.html
<![CDATA[News - Chagala Group increases interim profits ]]> https://www.proactiveinvestors.com.au/companies/news/183237/chagala-group-increases-interim-profits-183237.html Kazakhstan-based accommodation specialist Chagala Group Limited (LON:CGLO) has posted improved profits in the six months to June.

The group, which operates residential sites for ex-at oil and gas staff working in Kazakhstan, saw interim profits rise to US$1.69mln (US$1.49mln) although revenues dipped to US$9.6mln from US$10mln.

READ: Chagala Group fighting low oil prices and other battles

Highlight of the half year was a hotel agreement for long term accommodation in Uralsk with one of the largest companies involved in the development of gas condensate fields in Kazakhstan, said Chagala.  

Svetlana Mendesh, chief financial officer added: “At a time when global uncertainty, economic slowdown in the region and low oil prices continue to challenge the industry we operate in, we see the stable results and expect the second half of the year to build on the first and deliver improved results.”

Chagala is also involved in a court battle with a group of investors that has been ongoing for almost a year.

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Thu, 31 Aug 2017 10:41:00 +1000 https://www.proactiveinvestors.com.au/companies/news/183237/chagala-group-increases-interim-profits-183237.html
<![CDATA[News - Chagala Group fighting low oil prices and other battles ]]> https://www.proactiveinvestors.com.au/companies/news/182527/chagala-group-fighting-low-oil-prices-and-other-battles-182527.html Kazakhstan-based accommodation group Chagala Group Limited (LON:CGLO) has cut back on costs as low oil prices and a devaluation of the local currency curb oil company spending.

The company provides residential accommodation, on-site offices, catering, leisure, transport, warehousing and logistics support to all major companies involved in Kazakhstan’s oil and gas industry

Tough backdrop

Interim profits to June 2017 rose to US$1.69mln (US$1.49mln) although revenues dipped to US$9.6mln from US$10mln.

Highlight of the half year was a hotel agreement for long-term accommodation in Uralsk with one of the largest companies involved in the development of gas condensate fields in Kazakhstan, said Chagala.  

Svetlana Mendesh, chief financial officer added: “At a time when global uncertainty, economic slowdown in the region and low oil prices continue to challenge the industry we operate in, we see the stable results and expect the second half of the year to build on the first and deliver improved results.”

Kazakhstan has major oil potential

Rich in natural resources, the country boasts some of the world’s largest oil fields, including the massive Kashagan discovery.

The field, in the Kazakh sector of the Caspian Sea, ranks as the largest commercial discovery in the last 40 years.

Like Kashagan, most of Kazakhstan’s major oil reserves and projects are found in the western part of the country, which is also the focus of Chagala’s development.

In seven years, oil production in the country has more than doubled to 1.71mln barrels per day in 2010.

By 2020, output from the country’s three major fields alone – Karachaganak and Tengiz fields and the off-shore Kashagan – is expected to grow to 3-3.5mln barrels per day.

Kazakhstan president Nursultan Nazarbayev has announced ambitious plans to double the country’s annual oil production to more than 1.2bn barrels, joining the world’s top five oil producers.

Court battle

Chagala is also involved in a court battle with a group of investors that has been ongoing for over a year.

Originally seemingly a dispute over plans to raise more equity funds it has resulted in a claim against the company and three directors.

In the last annual report, chairman Michael Carter gave this update.

“It was not an easy year – we faced a shareholder dispute related that has ended in litigation between one shareholder and the directors of the company.

“The outcome of the litigation is always uncertain, and depending on the outcome, the losing party could be required to pay an estimated two-thirds of the total incurred legal costs of the winning party, in addition to its own legal costs.”

The board acted in the best interest of all shareholders, he added.

 

 

 

 

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Sat, 01 Jul 2017 09:52:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182527/chagala-group-fighting-low-oil-prices-and-other-battles-182527.html
<![CDATA[News - Chagala Group battens down as oil price dip slows Kazakh activity ]]> https://www.proactiveinvestors.com.au/companies/news/182525/chagala-group-battens-down-as-oil-price-dip-slows-kazakh-activity-182525.html Kazakhstan-based accommodation group Chagala Group Limited (LON:CGLO) saw profits halve in 2016 as low oil prices and a devaluation of the local currency curbed oil company spending.

Chagala provides residential accommodation, on-site offices, catering, leisure, transport, warehousing and logistics support to all major companies involved in Kazakhstan’s oil and gas industry.

Net profits fell to US$0.8mln (US$1.9mln), on revenues of US$20.3mln (US$23.5mln).

Rent fell to US$15.6mln (US$17.5mln), food sales to US$2.6mln 9US$3.5mln) and other income to US$2.1mln (US$2.5mln).

Svetlana Mendesh, Chief Financial Officer, said the results were in line with its projections and local market trends in a tough market.

“Low oil prices, the devaluation of the national currency in the investments' region and difficulties with the implementation of major oil and gas projects have led to a reduction in projects and staff.

“However, the investments managers have enabled us to maintain strong EBITDA through conscientious cost control and continuous improvements in operating standards and business processes.”

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Fri, 28 Apr 2017 09:19:00 +1000 https://www.proactiveinvestors.com.au/companies/news/182525/chagala-group-battens-down-as-oil-price-dip-slows-kazakh-activity-182525.html
<![CDATA[News - Chagala soars as it allays fears about imminent fund-raising ]]> https://www.proactiveinvestors.com.au/companies/news/169135/chagala-soars-as-it-allays-fears-about-imminent-fund-raising-169135.html Shares in Chagala Group Ltd (LON:CGLO) shot up Thursday as it said it had no plans at present to raise funds through a share issue.

The company’s financial situation has been a bit cloudy since it arranged a credit facility with Bank CenterCredit, a Kazakhstan bank, which would require repayment of its existing loan from Al Hilal Bank.

The company believes that amounts available under the Bank CenterCredit will provide the group with sufficient funds to meet its current financing requirements, including the repayment in full of the group's Kazakh tenge-denominated bonds, which are due to mature on 1 December 2016, and the repayment of the Al Hilal loan.

In mid-morning trading Chagala’s shares were up 20% at 1.8p.

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Thu, 17 Nov 2016 09:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/169135/chagala-soars-as-it-allays-fears-about-imminent-fund-raising-169135.html
<![CDATA[News - Chagala Group surges as Asian Investment Management Services lifts holding ]]> https://www.proactiveinvestors.com.au/companies/news/167757/chagala-group-surges-as-asian-investment-management-services-lifts-holding-167757.html Chagala Group Limited (LON:CGLO), which provides services to the oil industry in Kazakhstan saw shares surge as it said Asian Investment Management Services Ltd now holds 11.31% of voting rights.

The latter bought yesterday 1.256mln depositary interests, or 6.02% of the total voting rights, at $1.55 each, and now holds around 2.36mln depository interests.

Earlier this month,  the group warned it may not be able to meet an upcoming bond repayment due to the halt imposed on a planned placing and open offer.

It had intended to raise US$5.75mln in September, but this fund raise was blocked by a group of dissident shareholders.

As a result, the company said it would not be able to redeem US$6.7mln worth of Kazakh tenge-denominated bonds issued by subsidiary Caspi Limited on the maturity date of 1 December.

Chagala estimates it will be US$5.9mln short and needs to raise that as a minimum before the due date.

Shares added almost 24% to 1.55p in London.

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Fri, 21 Oct 2016 08:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/167757/chagala-group-surges-as-asian-investment-management-services-lifts-holding-167757.html
<![CDATA[News - Chagala looking at alternatives to fund bond repayment ]]> https://www.proactiveinvestors.com.au/companies/news/166954/chagala-looking-at-alternatives-to-fund-bond-repayment-166954.html Chagala Group Limited (LON:CGLO) has warned it may not be able to meet an upcoming bond repayment due to the halt imposed on a planned placing and open offer.

The Kazakhstan–based oil group had intended to raise US$5.75mln in September, but this fund raise was blocked by a group of dissident shareholders.

As a result, the company said it would not be able to redeem US$6.7mln worth of Kazakh tenge-denominated bonds issued by subsidiary Caspi Limited on the maturity date of 1 December.

Chagala estimates it will be US$5.9mln short and needs to raise that as a minimum before the due date.

The oiler is exploring other finance options, but so far has not identified anything of sufficient size to repay the KZT Bonds at their maturity.

In addition, Caspi has been told by lender Al Hilal Bank that it believes the ongoing dispute with its dissident shareholders has affected its ability to repay a US$6.5mln facility.

 As a result, the bank intends to accelerate the repayment schedule from the original date of November 2019.

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Wed, 05 Oct 2016 13:09:00 +1100 https://www.proactiveinvestors.com.au/companies/news/166954/chagala-looking-at-alternatives-to-fund-bond-repayment-166954.html
<![CDATA[News - Chagala Group launches share placing to take advantage of recovery in Kazakhstan ]]> https://www.proactiveinvestors.com.au/companies/news/156340/chagala-group-launches-share-placing-to-take-advantage-of-recovery-in-kazakhstan-156340.html Kazakh specialist property group Chagala Group Limited (LON:CGLO)told investors it is raising US$5.75mln through a share sale.

The aim of this injection of funds is to repay bonds and to strengthen the group’s balance sheet.

Chagala chairman Michael Carter Jr in a statement said: "We are pleased to announce this capital raise, which provides an opportunity for Chagala shareholders to participate in a fundraising being made in order to provide the company with additional capital to redeem its outstanding KZT bonds when they mature on 1 December 2016.

“This will result in a reduction of the company's debt and therefore strengthens the group's financial position and puts the company in a stronger position to take advantage of a market recovery."

Chagala plans to issue new shares to institutional investors, at a price of US$1 per share, and existing shareholders will have an opportunity to participate on the same terms via an open offer.

The company also gave investors a brief business update. It highlighted that the restart of the Kashagan oil field, anticipated in October, is expected to have a positive impact on the group’s trading.

In July, a lease for the Chagala Centre Office was extended by Kashagan operator NCOC. This was highlighted as a significant agreement for Chagala as rent from office space represents a significant part of the group's revenues.

Similarly, the recently sanctioned US$36.8bn Tengiz oil field development is expected to positively affect the group’s business, due to increased demand for accommodation and office space from the developers.

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Tue, 06 Sep 2016 07:54:00 +1000 https://www.proactiveinvestors.com.au/companies/news/156340/chagala-group-launches-share-placing-to-take-advantage-of-recovery-in-kazakhstan-156340.html
<![CDATA[News - Chagala: Be a part of the Kazakh oil boom ]]> https://www.proactiveinvestors.com.au/companies/news/129570/chagala-be-a-part-of-the-kazakh-oil-boom-129570.html Chagala Group Limited (LON:CGLO) provides residential accommodation, on-site offices, catering, leisure, transport, warehousing and logistics support to all major companies involved in Kazakhstan’s emerging oil and gas industry.

Rich in natural resources, the country boasts some of the world’s largest oil fields, including the massive Kashagan discovery.

The field, in the Kazakh sector of the Caspian Sea, ranks as the largest commercial discovery in the last 40 years.

Like Kashagan, most of Kazakhstan’s major oil reserves and projects are found in the western part of the country, which is also the focus of Chagala’s development.

In seven years, oil production in the country has more than doubled to 1.71mln barrels per day in 2010.

By 2020, output from the country’s three major fields alone – Karachaganak and Tengiz fields and the off-shore Kashagan – is expected to grow to 3-3.5mln barrels per day.

Kazakhstan president Nursultan Nazarbayev has announced ambitious plans to double the country’s annual oil production to more than 1.2bn barrels, joining the world’s top five oil producers.

A land of opportunity

“Kazakhstan is full of untapped potential,” chief executive Francisco Parrilla told Proactive earlier this year.

“As it becomes a business environment, it’s a land of opportunities.” But Parrilla has his sights set further afield.

“We’re in the process of expanding into countries where people don’t see an obvious opportunity,” he told Proactive.

“Like for example Egypt, Bulgaria or Turkey – where everybody thinks is not the right place to invest, we think it’s a good time to invest.”

Stable performance despite volatility

If its progress in its home region is anything to go by, Chagala’s model could well take off in neighbouring regions.

One would think a company so reliant on the oil industry would be feeling the tantalising highs and near-crippling lows of such a volatile market.

But, as finance chief Svetlana Mendesh explains, that’s not necessarily the case.

“The industry is constantly changing and is very difficult to predict,” she admits.

“But in spite of world economic crisis and volatile oil prices, the group still demonstrates a stable performance and manages to invest in the development of new projects.”

A mix of active sales strategies and extensions of several major contracts allowed Chagala to weather the storm in the wider industry in the first six months of the year, as demonstrated by its solid results for the period.

Operating profits up 18%

In the first half of this year the group saw operating profits of US$2.15mln, up 18% on US$1.75mln seen a year earlier, on revenues of just over US$10mln. Pretax profits more than doubled to US$1.49mln.

Chagala was awarded a new lease agreement for office space with the North Caspian Operations Company in Atyrau, a region of western Kazakhstan, and also completed the reconstruction and refurbishment of an office building in the city of Uralsk.

The development has been earmarked by the headquarters of the Karachaganak Petroleum Operating consortium, one of the largest companies involved in the development of gas condensate fields in Kazakhstan.

“Many of the pieces are in place”

“The market we operate in is constantly changing and is not always providing us with many easy opportunities,” said Mendesh.

“But I am cautiously optimistic about this year and I believe many of the pieces are in place to make 2016 a good year for Chagala.”

So, for investors looking to tap into opportunities in Kazakhstan, look no further.

After floating towards the end of last year at 1.25p, June saw massive share price movement after its development wooed investors, reaching a zenith of 2.5p at the end of June.  The share price has now levelled off, currently standing at the 1.5p mark.

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Mon, 22 Aug 2016 14:51:00 +1000 https://www.proactiveinvestors.com.au/companies/news/129570/chagala-be-a-part-of-the-kazakh-oil-boom-129570.html
<![CDATA[Media files - Oil price down, but Chagala on the up ]]> https://www.proactiveinvestors.com.au/companies/stocktube/5426/oil-price-down-but-chagala-on-the-up-5426.html Mon, 22 Aug 2016 11:27:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/5426/oil-price-down-but-chagala-on-the-up-5426.html <![CDATA[Media files - Kazakhstan a ‘land of opportunity’, says Chagala chief ]]> https://www.proactiveinvestors.com.au/companies/stocktube/5254/kazakhstan-a-land-of-opportunity-says-chagala-chief-5254.html Fri, 08 Jul 2016 13:31:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/5254/kazakhstan-a-land-of-opportunity-says-chagala-chief-5254.html