The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Thanks for the clarity. You seem to have a good handle on this sector.
I was surprised to see that ii article and sticking to £7-8 target following the placing. But from my message below, you can see why I don't think it is out of the question, but still taking it with a pinch of salt. By 2030, this could easily be back to it's all time highs though. That'd be nice!
Argh ok. Sadly not all of that will be pipeline potential for PFC.
A lot of that will not be in their skillset, stuff like subsea cables, the turbines.
And it's unlikely all of that will go through a top tier contractor but certainly a decent portion will be.
The Crown Estate Scotland put out the document below which give a breakdown of what each section is likely to cost per GW, although with cost falling, some of it may be out of date.
https://www.thecrownestate.co.uk/media/2860/guide-to-offshore-wind-farm-2019.pdf
There still a good few billion just from the offshore substations (and I think they won some jacket owrk on other offshore wind?).
Potentially a few more from onshore hydrogen plants.
And that's just from this bidding round. There's more in the pipeline with Scotwind 2 following off the back of this in 2024. There's also been mention of a leasing round dedicated to oil and gas decarbonisation but I'm unclear if that is on top of Scotwind 2.
And last year, Crown Estate England awarded 8GW of similar work.
The demand for offshore engineering and construction skills will be massive over next decade, which is why I am so bullish about Wood and PFC! Billions in the UK alone and much much more internationally. The 2020 and 2030 will be the renewables version of the 70s and 80s for North Sea oil.
AND, that's the tip of the iceberg. Onshore in demand side (residential and industrial), there'll be just as much work to go round as we go towards net zero. Although it is less clear if PFC will play into some of those opportunities.
Can’t claim ownership for the calc. Attached article quotes programs valued at £26bln over the lifetime.
https://www.energyvoice.com/renewables-energy-transition/wind/uk-wind/scotwind/380073/scotwind-cromarty-firth-aberdeen-harbour/
Mickey, what's your calc behind the £26bn?
Does it factor in that many of these are also considering connections to onshore hydrogen (or other synthetic fuel) production plants? I should know as I am involved with one of those myself but I won't say which one.
Or is that extra gravy on top of your calculation?
Very interesting. Offers a pipeline for projects worth £26B over time. Strikes me there’s a huge opportunity both old and new over the coming shorts years.
Feels like a great deal if momentum behind the share price. Next stop £1.70.
It seems we've been knocking on the door of 150s for most of today.
Will we see us getting above this and continue the rise tomorrow when the yankees return from their holiday today?
And in other news, I note the Scotwind winners were announced today. A bit longer term, but this could be good news for Petrofac over next decade. They already built the Seagreen substation and with 25GW of new offshore wind planned, this could mean 30 or more new substations being required over next decade Albeit, in the very short term there will be a load of planning to do and scopes for the likes of Petrofac will be limited. But in a few years, they are well placed and should do well, assuming Asfari doesn't route that part of the work to his new endeavour of course.