Petrol announced the extension of the Geoplin’s loan agreement, while also announcing that no capital increase is needed. Finally, they announced that they have called upon Russian Gazprom for the breach of contract due to the limited gas supply.
At yesterday’s GSM meeting of Geoplin, Petrol, the majority shareholder of Geoplin at 74.34%, announced several resolutions. First of all, they announced that they will extend the loan agreement to Geoplin, in order to ensure liquidity for Geoplin to enable it to continue operating smoothly. At the same time, the management has estimated that a capital increase for the company is not needed in the current market situation.
At the GSM, the shareholders were also briefed on the financial effects of the limited gas supply under the Russian agreement with Gazprom which can no longer be efficiently managed in a way that would avoid any damage to Geoplin. To this end, shareholders gave their consent to the GM for executing legal transactions and acts to protect the interests of the company. The latter called upon Gazprom to resolve the breach of agreement and provide full compensation for damages resulting from such a breach.
Gas prices* (2015 – 2022 YTD, EUR/MWh)
Source: Bloomberg, InterCapital Research
*Based on the Dutch TTF 1-month forward contract
Considering that several months ago news was circulating that Geoplin might need a capital increase due to the situation regarding the prices of gas, we find this news quite positive. As the prices of gas have recently somewhat stabilized, these are quite positive news for Geoplin, and by extension, for Petrol. As such, we find this news positive for Petrol’s share price.
Petrol share price* (2015 – 2022 YTD, EUR)
Source: Bloomberg, InterCapital Research
*Adjusted for the 1:20 share split
