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Short answer - yes, there is no provision in the scheme for DCU holders to gain any portion of any interest earned by Prax on cash they receive from the sale of the hydrocarbons.
It would be impossible to really quantify it in any case. They could immediately use the cash received for investment in other unrelated projects, and subsequently make available the cash due to DCU holders from other sources at the required time. Nothing in the docs (that I'm aware of) to say they have to set aside and retain the 17.5% straight away on receipt, it's just a liability they have to meet at the due time is my reading.
The FX conversion timing is just administrative, to ensure they have the necessary funds in £ in good time to transfer the money to Computershare for distribution. They have done it slightly earlier this time than in Sept and that was better as the £ strengthened immediately after they got the rate from HSBC, would have been an extra 0.5% or so hit if they had waited.
Corry - just read again yesterday's March Prax calculation statement, covers the end June 23 + end Sept 23 offloads. The FX for the whole sum was performed in March. Does this mean that Prax held our 17.5% for the end June offload for 8-9 months earning interest on it which they retain, and our 17.5% for the end Dept offload for 5-6 months earning interest which they retain? Put another way - does it mean that if things for right for the, that paying DCU cash every 6 months means they can make & retain interest on our 17.5% for up to 9 months eg they get the cash for the start Jan 24 offload but we don't see it till end Sept and they keep all the interest Jan-Sept on our 17/5%?
I guess the 1.77p sale price is for people in a hurry. If we get... 0.9p in Sept 2024, 0.6p in March 2025, 0.6p in Sept 2025, and maybe 0.3p in March 2026 and 0.2p in Sept 2026... 2.6p total. And they aren't outlandish guesstimates.
I'm surprised they're not starting to reduce in value then. Granted people have been selling but surely they must start to devalue else it will be worth selling them off after the next payment date.
How soon Kever?
"Are dcu's really still trading for 1.77?"
Yes still trading at around 1.7p today. Remember this figure is the return yet to come from DCU payments till end of 2026
Money received today into my SIPP
Peter - ??? - but still nothing in Hargreaves accounts. so are you just assuming based on what others report their brokers are doing?
Same here. HL told me that was a capital repayment hence ISA. These are now DCU income payments paid into trading acccount and income taxable.
I invest to make money and with Hur after some trading gains it certainly got difficult towards the end but now blue with whatever is still to come as a bonus
I’ll pass on the goading of the obvious self obsessed individual
GLA
Bidds - was hoping you would say previous DCU was paid into trading account as would at least show Inter Invest consistent and different brokers may interpret differently. That they have pivoted from paying into ISA to paying into trading account increases chance of Hargreaves and other brokers doing similar. Questions - did they say whether or not they would be retrospectively re-routing previous ISA payment into trading account? (one would imagine they would need do so for consistency, though rather difficult if folk have already withdrawn ISA cash ). Did you ask them if they intended doing so? Or to explain why they paid previous DCU payment into ISA? Unlikely you had time to think quickly enough in the circs to do so - just my open questions.
PS. As soon as any Hargreaves client (or any other broker) sees where the DCU payment is paid into, please can they post that info
Previous DCU payment went into the ISA. This one has gone into trading account. Have spoken to II to voice my ‘disappointment’ but don’t hold much hope for them changing the landing point for this payment. They claim they will be fined by HMRC if they pay it into the ISA.
Have lodged a formal complaint to make myself feel a little better!
Mine same as you Sense.
Nothing showing as yet and paid into ISA last time, listed as Return of Capital
Was the same done with previous dcu paymnent. or was that made to your isa? hargreaves paid previous dcu into isa
Interactive Investor
Bidds - which broker?
Am Hargreaves - nothing showing there yet
Credited to my trading account rather than ISA
Not happy!
Looks like interactive investor are setting the right standard by crediting accounts today.
GOOD:- .6p via good production & $85 Brent sees all at 6.9p p.sh. Expected .9p end Sept (3 offloads) sees all at 7.8p p.sh, with another offload in AM tanks & another due end Dec (2 offloads). So 8.4p.sh end Dec 24, 1.5yrs post summer 2023 sale, with 2 yrs left till end 2026 cut-off date.
BAD:- 2.4p in 18 months (1.6p annually) = 3.2p due 2yrs 2025/2026. So 11.6p.p.sh total. Assuming no production fall, stable costs & $85 Brent. But production falling & costs rising. So barring lasting dramatic Brent rise to compensate, 11.6p p.sh will not occur, never mind 12.5p p.sh. Barring Prax/HUR buying producing assets, 10p p.sh more realistic - largely dependant on production not falling off a cliff.
Possible UGLY:- CA half yearly reports almost 50% of it's circa 550 million DCUs sold at significant premium. It was a pre-summer 2023 PI concern that a sweetener private deal may have been agreed that post-sale (after decent interval) Prax would buy CA DCUs at a premium unavailable to other SHs. Has such occurred? Or did CA manage to obtain such premium via clever salesmanship to entity or entities other than Prax. I do not know the answer rather but simply phrase the obvious reasonable man question.
NB. Lest we forget perspective - irrespective of whether DCUs top out at 9p, 10p or miraculously 12.5p p.sh - overwhelming majority of PIs are deeply underwater at much higher SP, with many already drowned
Shock. Less than the 0.007 min expected and no where near the 0.01. Are dcu's really still trading for 1.77?
Dive centre another tanker to watch is the JASMINE KNUTSEN
No split given, but Laser predicted 533K in July & 539K in October = 1.072M barrels. Which is bang on.
So December lift delayed until Jan isn't in this, so hopefully 3 lifts in the next payment, so might be around .9p
Great work Laser
Thanks guys.
Donwe know who is the buyer? Wondering why such a discount and if any of us had a chsbce to buy that
Quick summary points:
Volumes only slightly down on average from April, total was inline with laserdisc's estimates.
£/$ FX c.1.7% up so that's a headwind.
Average Brent (plus profit sharing from BP) - $85.02, little changed from last April
Fees and costs - total for 2 offloads only $2.03m which is significantly lower than expected based on Sept statement ($1.9m for one offload).
Crystal amber rns today
Further realisations since the period end, with more than half of the Prax Exploration Deferred Consideration Units now sold