International oil prices are sluggish, trendy energy changes the use of funds raised to cut costs

International oil prices are sluggish, trendy energy changes the use of funds raised to cut costs
Affected by the decline in international oil prices, New Wave Energy has recently changed part of the use of raised funds to save financing costs and improve the use of raised funds.  According to the latest announcement of Trendy Energy, on April 9, 2020, the company’s board of directors passed the “Replacement of the Use of Part of the Raised Funds” to improve the use efficiency of the raised funds and the return on investment of the raised funds, according to the actual situation of the raised funds.Next, the original fundraising project “target asset (ie Hoople assets)) development project” will raise funds to be invested5.3105 out of RMB 0.8 billion.USD 120,000 (equivalent to RMB 2.200 million yuan, accounting for about 10 of the fundraising budget.48%, the actual expenditure will additionally include the interest that has been incurred) changed to “development project funds to supplement the assets of Howard and Boden”, and the purpose of the remaining raised funds remains unchanged.  In early March, because Saudi Arabia and Russia did not reach an agreement on crude oil production reduction, Saudi Arabia subsequently announced the first major production increase and price reduction. The rise in world crude oil prices was also affected by the superposition of the global outbreak of new coronavirus (COVID-19), and global oil demand is expected to decline.The contradiction between supply and demand has become more prominent, and the international oil price boots have seen a steep decline, which is still at a low level.  In this context, Trend Energy expressed the necessity of changing the use of raised funds. Considering that low oil prices have different effects on hoop assets, Howard and Borden ‘s asset assets, the two oil assets are in the type of reservoir, oil reserves, and mining costs.There are differences in capital requirements, economic benefits, etc. In the current low oil price environment, it is not economical for the company to invest capital in Hoople assets, and Howard and Bourdon oil assets account for more than 98% of the company ‘s oil and gas revenue.Profitability can still be achieved at low oil prices.Therefore, the company adjusted its 2020 business plan and concentrated limited capital development on Howard and Borden assets.  According to the introduction of Trendy Energy, Howard and Bolton ‘s assets and assets listed companies were acquired indirectly by issuing shares to purchase Dingliang Huitong ‘s 100% property share in 2017.This state-owned asset is located in the Permian Basin in Texas, the United States. It belongs to shale oil reservoirs and is a core asset that listed companies have focused on in recent years.  ”The company is in the development stage of the energy sector. The future capital expenditure will be reduced. The use of raised funds can further optimize the company’s resource allocation, save financing costs, and improve the efficiency of the use of raised funds.”New Energy also said that in a low oil price market environment, it is particularly important to revitalize corporate funds and enhance liquidity.In order to reduce the company’s financial costs, improve the efficiency of the use of raised funds, and avoid liquidity risks, consider changing part of the use of raised funds to the Howard and Boden asset asset development project funds, which is in the interests of shareholders and there is no damage to shareholders’ stakeholdersCase.  The 2019 annual report released by Trendy Energy shows that the net profit attributable to the owners of the parent company in 2019.7.8 billion, an annual increase of 79.37%; operating income 60.700 million, an annual increase of 27.0%.Reporter Zhu Yueyi Editor Sun Yong proofreading Wei Zhuo