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Add to that Mitch Fleggs in attendance:
I look forward to joining colleagues tomorrow for @Jefferies 4th annual Pan-European Mid-Cap Conference in London #energy #oilandgas
https://x.com/mitchfleggceo/status/1769817467876962444?s=46&t=uz3in5yMdDdYvqnOjeh9vg
Latest Serica Energy tweet…
We look forward to joining @Jefferies 4th annual Pan-European Mid-Cap Conference in London tomorrow; an excellent platform to discuss market trends and opportunities and share insights. #energy
https://x.com/sericaenergyplc/status/1769793728334434489?s=46&t=uz3in5yMdDdYvqnOjeh9vg
Crude 82.900 ⬆️
Brent 87.168 ⬆️
TTF Gas 28.82 ⬆️
UK Gas 74.30 ⬆️
How about picking up a 7% holding for less than £1mill in Longboat Energy. That would shuffle the deck somewhat and add a bit of intrigue.
By our Institutional Investors or Mr and Mrs Hardy, nor I would surmise by any Long Term Holders here. (Myself included)
My last dividend went into Herald Investment Trust thats up around 25% at present and causes me no worries at all - unlike the death nell of EPL that is preventing any new investors into Serica Energy, despite doing all the right things this year on capex.
I still have a substantial holding, (stupid is eh!) and feel their is still a few cards to play to the benefit of the company and sincerely hope that the sp delivers for peops averaging down - the divi's not to be sneezed at. GLA holders
None of them are even worth a cross on paper anymore. Spoilt vote for me. Having said that will vote for an independent if they are worth it at the time.
Absolutely, what everyone outside of the industry fail to recognise is O&G extraction is not like any other industry. Massive upfront cost, high risk and dedicate years of commitment as such all is based upon the economic value over the life of the field. Removal or even reduction of allowance will bring forward CoP and hence substantially reduce tax received by HMG. As we all here know, O&G extraction can not be switched on / off at will, once CapEx is cut / removed, developments put on hold the economic value becomes questionable so you begin death cycle of the NS, investment will simply move overseas never to return. This transition has already begun imo.
All for what, a cross on a piece of paper !!
aimo & dyor
FWIW, Simply Wall St have decent company info, and good visuals across various interesting dimensions such as 'Value', 'Future' etc. But their valuation methodology is really hit and miss, and generally derived from a DCF model without reflection of wider sector and geopolitical factors. Possibly not even aware of nuances of EPL.
An analogous article last week on HBR lambasted realised profit for the previous reporting period, without awareness of EPL impact.
That would be nice Newkotb. Maybe they have forgotten the fact that Serica is North Sea based and is technically nationalised by a war funding state inmo,and no one's elses
Think Simply Wall St have been sniffing something !!!
Would be nice to think they are on the ball rather than off their rocker, half that would do me !
aimo & dyor
Hope your right DennisThe Pennis.
Fwiw i still hold here , but not as many originally,but a quantity that effects me.
I think they're rushing to get as much done as possible before a Labour government. Then all North Sea investments will stop until Labour see the error of their ways and concede a u-turn. Just my theory.
Thanks Stevo12. Extremely informative. Lets hope that Serica gets the majority of the workovers completed before the next general election. Otherwise hopefully they will cancel the remainder of the workovers should Labour become the next government.
Upmega
The Labour proposal is that investment allowances will continue against core tax, but no tax allowances for capital expenditure against EPL. This would effectively result in HMG providing a tax charge reduction equal to approx 45% of capital expenditure (for companies without brought forward tax losses) as opposed to the current 91.4% allowance.
The net effect of the proposed labour policy is that the operator would fund 55% of capital costs, receive 22% of operating profit during production and fund 60% of Decom costs. I think there will be very few projects where the 22% of operating profits will be sufficient to cover upfront capital costs, interest expense on borrowings and decom costs and generate a return. It will result in tax rate that will likely exceed 100% of total FCF/ economic value over the field life for most projects.
Something I can't get my head around.
If the hmg removes the EPL incentive of repaying capital expenditure. Then surely any capital expenditure could still be written off against profits. So in effect we would be no worse off by continuing the capital expenditure programme in the future.
We may well be due some positive news before the end of the month:
- Bittern sidetrack commencement
- Keith Well's intervention commencement
- Erskine Compressor fixed
- Belinda development decision confirmed
- and importantly a new CEO chosen
A flow of information is always good news and just might resurrect our ailing sp. Good point Maverick and agree that its politicised and a major negative.
It’s (North Sea oil) being used a political weapon and the tories are running scared of labour scoring cheap electoral points. Reckon that after the election if the tories miraculously win they will come to their senses - we will see
"Falling investment in North Sea crude and natural gas extraction helped drag Britain's production sector into contraction in the three months to January 2024, Office for National Statistics data shows.
UK oil production is now at its weakest this century, falling two-fifths below 2019 levels in the second half of last year, amid reports firms are slashing investment in response to the UK's Energy Price Levy." (This is Money 4hrs ago)
Unfortunately politicians are deaf and very "DUMB"
The dispute encompasses around 50 offshore workers who provide heating, ventilation, and air conditioning services on offshore platforms operated by BP, TAQA, CNR, Repsol, Serica, and CNOOC. These workers will take three-day strike action over three months, including March 25 – 27, April 15 – 17, May 6 – 8, and May 27 – 29.
Battle for work-life balance continues, as workers gear up for strike action across multiple UK offshore platforms. This wave of strike action will hit several platforms operated by BP, TAQA, CNR, Repsol, Serica, and CNOOC.
3 weeks on and three weeks off all year and the poor peops have to do training on their weeks off - not fair they say!!
Here you go - Under Article 19(11) of the UK Market Abuse Regulation (UK MAR), the period of 30 calendar days before the announcement of an interim financial report or a year-end report that an issuer is obliged to make public according to the rules of the trading venue where the issuer's shares are admitted to trading or the law of the United Kingdom, during which a person discharging managerial responsibilities of an issuer is prohibited from conducting any transactions on its own account or for the account of a third party, directly or indirectly, relating to the shares or debt instruments of the issuer or to derivatives or other financial instruments linked to them
Surprised .. isnt it sixty days and not thirty days. if so we have another seven weeks to go before any possitive announcement,but in this current climate and the apathy of diversifying away from this basket case of country. Well what can lth and any investors expect???
It is often a decent signal as there are few people who like to lose money, so with a 30 day restriction on purcahses for bod memebers before any news is released to market it would not be unreasonable to expect something positive in the April trading update.............. 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 purchase of 75000 at 189p (£141k).
The main issue here is. Which i hasten to add that Wokes will not say.
Tax and where it is ending up.
Inmv . It is going to fund a war for a country that is not part of Nato nor ever likely to be due to its corruption and then we have the chosen land that we are funding them to do mass slaughter ???
Oh forgot to add litttle britains land hotels now fully booked thanks to hmg and the wokes.
That’s the real issue, not the amount of tax, albeit ridiculously high but the never ending uncertainty....
Aimo and dyor