Originally Posted by
t_cas
A 45% reduction in debt and over half a billion squirreled into cash reserves, equaling approx 1.5 billion together, is a marked decrease in leverage. This was achieved on top of operating costs. Is this what is being commented on as bad or going backwards?
Correct me if I'm wrong, but wasn't the debt paid down from proceeds received as a result of the capital injection from the chinese? If it had been paid from operating profit, then the underlying profit figure would have been much higher, to the tune of $500m. If I am correct on this Borghetti's claim is not one of having paid down debt, but one of being able to convince yet another shareholder to give him more capital to fritter away on his next fancily named project.
If the debt reduction was a product of JB's brilliant business strategy, then we should see another significant tranch of debt retired in the second half of the year. I bet we don't.