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That’s the real issue, not the amount of tax, albeit ridiculously high but the never ending uncertainty....
Aimo and dyor
Sorry, I missed this accompanying article…
https://www.telegraph.co.uk/news/2024/03/12/rishi-sunak-new-gas-power-stations-blackout-risk-net-zero/
Sunak's planning to build more unabated gas power stations.
Could be good news for gas producers if they can work out how to make a profit under Labour’s proposed tax regime (and if Labour don’t immediately cancel his plans).
Not sure if this is supposed to be a new policy announcement from Sunak…
https://www.telegraph.co.uk/politics/2024/03/12/rishi-sunak-energy-security-gas-net-zero-north-sea/
Very vague as usual.
Not sustainable long term though. HBR should be ok, assuming the buyout concludes. Not sure how sustainable SQZ business model is with current / Labour tax rates
If they don't invest overseas, I think the only reasonable course of action would be to return all cash to shareholders and wind up the company. If Rachel Reeves is the next chancellor and she goes ahead with her idiotic plan to implement a "proper windfall tax" to "raise £7 billion" (😂), E&P businesses won't be sustainable in the UK.
The dividend is pointless as the share price has been decimated since they started paying a decent amount. I would rather see the funds invested in an overseas asset and then the company relist in the us. I'm sure the share price would reflect this in a positive way imo.
After the brief respite last week, it looks like normal service has resumed with the share price.
If this is still a healthy, profitable company, hopefully the BoD will be considering more juicy dividends to compensate shareholders for their substantial capital losses.
It all helps - with Hartshead now reviewing the economics of developing the Somerville and Anning discoveries in the NS southern sector.
Just perhaps it would make sense for all prospective developments pending and from the latest licencing round, be broadcast over the media. Certainly a clarion call from oversea's and multinational players would support our UK based O & G companies. I've watched Unions fight for Dockers, Miners, Steelworkers, Ship Builders, and many more - mayhap they have a voice against their lords and masters.
Mind blowing tax rate at HBR of 95%, however atleast they are returning significant amounts to shareholders with dividends and buy backs, from their end of year financials RNS:
§ Profit before tax of $0.6 billion (2022: $2.5 billion); profit after tax of $32 million (2022: $8 million) reflecting an effective tax rate of 95% (2022: 100%)
§ Free cash flow (post-tax, pre-distributions) of $1.0 billion (2022: $2.1 billion)
§ Returned $249[2] million through share buybacks in addition to the $200 million annual dividend, resulting in $1 billion of shareholder distributions since becoming a public company in April 2021
This is why BP should/could be more vocal,but alas they are not.
I still believe that these idiots should be held accountable for their actions. Crime against our state I call it.inmho, dyor onmho
They're not actually losing money yet. Most O&G companies are still making some money (shock, horror!), at least until Labour get into government and introduce their profit confiscation scheme. At that point, I would expect all UKNS operators to down tools. I think it would be good to see how the country manages without domestic oil and gas production.
A basic & quick look at the chart of Uk natural gas (set to All) & you can see we’ve pretty much returned to the normal prices experienced prior to 2022.. just part of the cycle ….
https://tradingeconomics.com/commodity/uk-natural-gas
That would be a good way to work out MPs pay I reckon. Just work out the average for the last 20 years and make no adjustment for inflation. Would save taxpayers a fortune. Not as if they could complain if that's how they've worked out what level to set the windfall tax at. Could use the same formula for spending on public services as well.
Newkotb
Thanks and also many thanks for your informative posts over the years.
Hopefully everything will move forward this year once hmg and Ponce's in waiting loose their positions .,inmho and no one's else's
Upomega,
Benchmark was based on 20 year average apparently, guess those years were never indexed linked for inflation when they did the calculations either.
Absolute joke the floor criteria imo and the industry as you mentioned appears to be accepting things as they are with very little pushback .
Aimo & dyor
Why isn't the oil and gas industry (Especially British Petroleum) collectively asking HMG what they call normal prices and how they came up with their benchmark????
Going on how they valued their assets and how much of a bargain they were (according to all involved in the takeover) at $20 a barrel, I think they would need 2.8 billion for those 140 million barrels yes?
Maybe knock a bit off for a quick sale, let's say 2.5 billion? Be about 7 quid a share.
Forgot to add BP needs to stand up a bit hear inmho.
Corrections
are not saying more. They are acting in a way that is is crime againsnt our state that will reverablate in a few years time. Only for the next generation to pick up the pieces of what is left.
Hunt, Sunak,Starmer you are Sc...m Buckets inmho.Onmho,dyor, History will Judge you for your actions
Thease things need to address the general public as to their actions re north sea oil oil and gas, Not so much as their actions in destroying our soverignty. They afe acting in crime againsnt the stagte INMHO.
Why oh Why is not the larger corporations saying more. This WFT is ridiculous enless it is applied across the board of all who have benefited. inmv onmho no ones eles and pj man of course
Correction ..Sixty days uk. So on that assumption the results will not be until May.
Just googled and its thirty calender days before results are due if that is correct.So on that assumption the results will be after the seventh of April, Hopefully we will see continued activity over the next few days.
We could now do with another update between today’s production news & the upcoming results to keep some momentum going.. hopefully they RNS Erskine back up & in production with some figures … when the time comes…
The directors buying are most welcome inmv, but surely they should be in a closed period pending the final results next month. Maybe someone could answer that.
David Latin, Non-Executive Chairman, purchased 20,462 ordinary shares at an aggregate price of 180.04p (£37k) following the CFO's 19000 share purchase earlier today (£34k), following David Latin (Chairman ) recent purchase of 117,255 shares @ 183.7p (£215k) & Mitch Flegg's purcase of 75000 at 189p (£141k)....The BOD are buying.
https://twitter.com/surprised_trade/status/1765801930217902485