Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.
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Mitch is touting for a new job … 😆
I wonder which shareholders he's referring to ? Obviously not the vocal 27% that told him not to do anything as stupid as investing all our money in the NS at the start of the EPL ? Either he's bought a hearing aid or maybe some of the larger shareholders who supported the deal are suffering from buyers remorse?
Take a look at their results :
https://www.enquest.com/fileadmin/content/press_release_pdfs/2024/Results_for_the_year_ended_31_December_2023_and_2024_outlook.pdf
Could be worse options out there, oh wait a minute, maybe not as we have already acquired them (Tailwind) of course 😕
Aimo & dyor
Serica could "do an Ithaca" and bid for Enquest; that would double current production at a stroke. Highly cash generative although loss making on the bottom line and market cap currently £281M. IC says "the good news is that it (Enquest) expects to pay no corporation tax or supplementary charge on UK operational activities “for the foreseeable future”. A bid premium would still leave Enquest affordable / cheap and the commercial benefits could be material. Just a thought.........
Opss, sorry should be Parkmead of course, hang over from yesterdays ITH news still on my brain !! lol
"The Company is looking at all options to maximise the commercial benefit by collaborating with other operators to share fixed costs such as rig mobilisation.."
Clearly, ITH are looking to hedge their bets against Labour pulling the rug from underneath them with investment allowance.
aimo & dyor
In other news...
"The feedback I get from shareholders and from banks is: 'What are you doing in the UK? We want you to invest in other parts of the world'," Flegg told attendees at a meeting of industry group Offshore Energies UK (OEUK) today. "That's the elephant in the room. We can't ignore that."
Yes indeed!!! Hoping that the next government might not do what they say they'll do isn't a great strategy. This investor would like to know what Plan B looks like.
https://www.argusmedia.com/en/news-and-insights/latest-market-news/2552085-serica-ceo-warns-on-uk-offshore-investment
Intersting article in the Times today re the North Sea and that the operators still see a very profitable business opportunity despite current sentiment.
'' Ithaca has been critical of the UK government’s oil and gas profit levy, stating it has affected sentiment and investment in the North Sea. however, ''Ithaca is understood to want to place itself at the forefront of consolidation efforts in UK waters and believes any government in Westminster will eventually come to see the importance of maintaining a domestic oil and gas sector..''
Well planning activities underway on the exciting Skerryvore exploration targets
· Parkmead has successfully driven forward the Skerryvore project, alongside its strong industry partner group on this licence
· Good progress has been made on well planning, site survey contractor selection, and the identification and sourcing of critical path long lead items
· The crucial offshore surveys are currently scheduled to take place in the second half of 2024, to deliver the planned well in early 2025
· This exploration well will penetrate the Tor and Mey intervals of these stacked prospects, which represent the targets which are the largest and with the highest geological chance of success
· The Company is looking at all options to maximise the commercial benefit by collaborating with other operators to share fixed costs such as rig mobilisation
As I suspected, Skerryvore now early 2025. Wonder how long it will take a new government to alter EPL again - no ofset costs!!
Mommur,
Morning,
The founders would of also received dividends for this 2nd tranche, paid in cash, upon issue of these withheld free shares estimated at ~£345,000 including interest of course ...
"Serica will pay a cash amount to the Seller equal to the dividends the Seller would have received had the held-back
shares been issued at Completion (plus an amount of interest). ..."
So ITH are in the process of another NS deal too .... hummm
aimo & dyor
Newk, you have to remember it was a reverse takeover and the rewards were similar to what Robbie Flegg got for all his hard work on the BKR deal (not).
Didn't see any mention in the Ithaca results of Erskine restarting - unless I missed it.
To counteract EPL they seem to going the route of adding mass - just perhaps we should reopen negotiations with Kistos and get a new CEO in the process!!
I see Ithaca have announced a possible merger with ENI today
https://www.lse.co.uk/rns/exclusivity-agreement-with-eni-spas-uk-business-71us2flykg4ddv8.html
Ithaca clearly still see value in the NS.. exclusivity agreement signed that takes them over 100k’s boepd but no guarantee of completion at this stage..
Ithaca Energy plc ("Ithaca Energy" or the "Company")
Exclusivity Agreement for a potential transformational combination with Eni S.p.A.'s UK Business
Ithaca Energy, a leading independent oil and gas operator in the UK North Sea, today announces that it has entered into an exclusivity agreement (the "Exclusivity Agreement") in relation to a potential transformational combination with substantially all of Eni S.p.A.'s ("Eni") UK upstream assets including the recently acquired Neptune Energy assets, excluding certain assets including Eni's CCUS and Irish sea assets (the "Potential Combination").
So the Tailwind founders receive their 2nd tranche of free share’s between them 1,438,849. Nice work if you can get it ….
Aimo & dyor
Number of trades are up today & the first day for a while where we have the matching trades reported :
25-Mar-24 16:35:59 184.80 123,000 Sell*. 227.30k O
25-Mar-24 16:35:47 184.80 123,000 Sell* 227.30k O
25-Mar-24 16:35:27 184.80 248,159 Buy* 458.60k. UT
I doubt it the yield is way to high inmv. Personally ten pence for the entire year is my prediction. Inmv we are now starting from scratch as a company in terms of writing off eighty percent of income in taxes..So in other words its where we go from here. Maybe just accumalate cash for the next few years and then take it from there.
Sad really but as a lth i doubt i will see this come to fruition again.
When are the results due here?
And is the dividend expected to be kept at the current level for this year and next year?
IC article 22.02.24
This North Sea energy company is making waves
Investors should take note of this mid-cap's profitable growth strategy
Often when you buy local the trade-off is price. Brits have made their choice for day-to-day shopping, choosing supermarkets over high-street greengrocers. When it comes to oil and gas, however, the local choice is also the cheapest.
Of the UK-listed mid-cap energy companies, Serica Energy (SQZ) is an inexpensive option. The North Sea-focused group sits on a forward enterprise value/Ebitda ratio of less than one times.
Serica returns to shareholders a dividend yield of around 12 per cent. Serica's metrics look so attractive because its share price has fallen by 60 per cent from an August 2022 high of 450p. Even a cash-and-shares deal that doubled production has not been enough to bring shareholders back. The group could be due a rebound, however.
We last put forward Serica as a buy idea in January 2022 in order to hedge against soaring household energy prices. The shares shot up in the months that followed, driven by Russia’s invasion of Ukraine, but since then the government’s windfall tax, combined with weaker energy prices, has knocked its valuation.
Serica’s relatively low enterprise value (EV)/Ebitda ratio is driven by its high cash profits and small pile of debt. Ebitdax (‘x’ being exploration costs) for 2023 is forecast at £401mn. This is a sizeable drop from 2022 due to lower oil and gas prices, but still represents a cash profit margin of 63 per cent. Broker Stifel thinks this margin will climb to 70 per cent in the current year, implying Ebitdax of £612mn. Peel Hunt analysts Werner Riding and Matthew Cooper remain bullish, however. “Despite lowering our numbers, it is important to state that we believe the business remains in a very strong financial position and is funded for all planned work programmes and shareholder distributions.
Much of the appeal of Serica lies in its low operating costs, although these have climbed a third from $16 (£12.70) per boe in 2022 to around $20 per boe now, according to Peel Hunt forecasts. They are expected to stay around that level in the medium term, however, and margins are already ahead of peers'. Gross profit per barrel (or netback) is around $40/boe for 2023, which Stifel forecasts will rise to $49/boe this year. Analyst at Stifel, sees net cash rising from £81.4mn at the end of 2023 to £449mn two years later
Serica’s portfolio offers balance between energy scenarios, but its short- and medium-term prospects are good, and at this yield and valuation we would buy.
https://www.investorschronicle.co.uk/ideas/2024/02/22/this-north-sea-energy-company-is-making-waves/
On this site P/E shows 2.7 % that would be a turn off for many.
Is 5 a good PE ratio?
Very low vs very high PE ratios
It is arguable that a PE of five or less is not a remarkable bargain. While it might look as if the company's prospects are being viewed too negatively, it is not a bad rule of thumb to filter out companies with a PE below this level.
Now 181p.
172p was the low on 4th March 2024 ( 5% lower )
Still category C with broker. ( this not the reason for margin increase this week )
Maybe the category changes are pointers. ( I noted last post the upgrades at same time Gulf Keystone & Marks & Spencer were also down since November 2023 so maybe not )
It was not a good idea staying home and buying more 8th November 2023 for 215p in hindsight.
Copied this from recent poster here .
Which has P/E 4.... 10% div.
Https://www.youtube.com/watch?v=20ZsEzbw7Rs
SQZ get a mention at 14.35 mins, low risk, cheap metrics, great divi and a longer term view.
Once again .Their stance is is not in my name . HMG are acting against what i stand for . RE supporting mass genocide and funding a non nato country . inmv .
Then they tax serica energy to fund this cr..p
Hopefully the the Donald will become elected and kick ass , You never know the idiots running hmg may soon vanish in woke land together with oik and its war criminal supporters . inmv dyor.
Scum buckets inmho. onmho.No ones elses . i have a a over twenty five badge .
"Personally I'm hoping for a hung parliament...!
Is that literally Mommur !! .. ;-)
Good weekend all.
aimo & dyor
Similar story with my portfolio DTP.
With regard to wft / epl, the weasels have exclusively targeted oil/gas companies in the UK due to the unique position of being unable to pass on costs to joe public, as our product is priced on the international market.
The likes of the Banks, BG/Centrica, BAE, RR etc would simply inflate their costs to compensate shareholders. Unfortunately we cannae do that., whilst billions are accumulated by said companies and others. They don't want BAE turning round and saying their Nuclear Sub is now 10 billion rather than 4 - after all its value is better than keeping the fuel coming?
Personally I'm hoping for a hung parliament.