The project is scheduled to start producing gas in 2016 and supply 16.5M metric tons of the tanker-shipped fuel in 2018; Russia's Novatek holds a 60% stake in the $27B, while France's Total (TOT) and China's CNPC (SNP) own 20% each.
Continuing "to evaluate emerging credit data," the bank increased its estimate of the loss estimation period from 12 months to 18 months, resulting in the need to boost the loan loss allowance by nearly 50% to $307M. The ratio of loan loss allowance to non-performing loans goes to 286.9% from 145.9%. There's also a $21.1M reduction in the originally-recorded fair value of loans repurchased from the GSEs.
The result: A net loss of $78.9M or $1.51 per share in Q1 vs. income of $160.5M or $2.77 per share a year ago.
Net interest income of $58.2M up from $55.7M a year ago with NIM of 3.05% up from 1.89% thanks to Q4's repayment of high-cost FHLB advances. Noninterest income of $75M falls from $184.9M.
Noninterest expense of $139.3M slides from $196.6M one year ago. Compensation expense of $65.6M down from $77.2M. Legal and professional expense of $13.9M down from $28.8M.
Net charge-offs of $12.3M falls from $35.4M one year ago.
Undeterred by a federal court smack down of his state-wide ban on Zogenix's (ZGNX) Zohydro, Governor Deval Patrick's Administration institutes restrictions on prescribing the product. Doctors will have to complete a risk assessment and pain treatment agreement before employing any opioid like Zohydro. The agreement covers drug screening, pill counts, safe storage and disposal and other safeguards against abuse.
The MA Board of Registration of Medicine approved the new requirements yesterday. Department of Public Health Commissioner Cheryl Bartlett issued an emergency order requiring physicians to use the state's Prescription Monitoring Program before prescribing Zohydro. The provides a mechanism for authorities to track where patients are receiving their medications.
Barclays' (BCS) European FICC business would be the hardest hit, says the team, with about 5K job losses. An overall investment bank cut of 7.5K jobs would equate to about 30% of the unit's employees.
"The U.S. broker-dealers have been far more proactive in attacking this situation than the European peers ... It has to be cross-sectors, trading desks not only commodities, as the very risk-taking nature of the business has fundamentally changed and is not reflected in people stacks."
FICC revenue fell 17% in 2013, and Bernstein calls it the best thing that could have happened to strategic investors locked in to the company as it "finally pushed management to put on a structural lens to solve a problem that was thought of as cyclical till now."
Bernstein estimates FICC income will be in the £4.5B-£5.5B range over the next three years, down from the £7.8B average from 2009-2012.