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It was aimed at those who think we have to accept the pseudo-science, increased costs and the brain-washed cultists who struggle to decide between puberty blockers and throwing soup at paintings.
The latter group are thinning out as there is always a new crusade around the corner. They could join others stealing from supermarkets and putting the loot in food bank hoppers which is the latest 'protest'. They haven't asked me if I'm prepared to subsidise their 'robin-hood' thievery with higher bills. They never do. They think they have the right to think for me; they don't.
*I have a sister-in-law who works at Morrison's Loughton. They used to allow people to skip dive their out of date food. They stopped because of the traffic jams it caused. The worst offenders were the Mercedes and BMW drivers.
Mr. Angry
Mrc, if it is like that, that to meet the liabilities of the EBT the standard procedure is to issue new shares, thereby causing a dilution, then, agreed, there appears to be no issue.
The company could have announced buy back and all shares cancelled. Nobody would have batted an eyelid in 6 months time when more shares are issued for EBT.
The company is buying shares now that would have caused dilution if they had been issued as new shares in 1, 3, 6 months. I don’t see what the concern is.
"Stay angry!" is the better statement, Romaron. Found this on the SQZ-board and words the problem excellently :
https://www.thisismoney.co.uk/money/markets/article-13346543/Tory-windfall-tax-war-killing-North-Sea-oil-Serica-chief-blasts-Labour-plan.html
Reporting share buybacks is required by all companies within 24 hours under stock exchange rules.
I find this comment in the RNS very interesting
"The Company will announce any market repurchases of Ordinary Shares no later than 7.30 a.m. on the business day following the calendar day on which the repurchase occurred"
It will give us a pretty good picture on how the SP reacts on the repurchases. In addition I do agree with Dumbly. I think the message about repurchases in the amount of MUSD 15 was unclear now when it includes shares for the staff/management.
Is gone. He accepted 2030 was impossible. The Scottish Greens still believe in it. So does the Pope. He's a believer along with Chris Packham, Greta Thunberg and Jeremy Hunt.
Has Ed joined the Trappists?
I’m sure ML will manage this to obtain valve for money, not create temporary SP spikes that only fall once they depart.
That’s a serious wedge of average daily volume that now needs to be acquired
Company looks a bit too cheap on paper also
I actually don't fall into the camp that 'share buybacks' don't hold value. I'd prefer the shares not be relisted later. I also wonder whether, since we're on an upward rather than a downward trajectory as far as SP is conscerned (trend) that it'll be better for us (ENQ) now than it was for HBR (I don't want to guess about whether the HBR SP would have been lower without buybacks). Many it was undervalued at every step. I'm hoping because we're in an uptrend for the moment (depending upon your timeframes) that the buybacks will push up to 21 and above. I'm just aware the HBR SP fell even with buybacks and divis
Mrc, not arguing against you regarding the efficiency aspect and there may be something I am missing, but this comes across as using part of the buyback announcement to cover something, as you say, they would have had to do anyway in the future. It's like when politicians re-package something and announce it as new when they had already announced it previously. Therefore, it seems the true "new" value of the announced buybacks is the $15m minus the purchases for the EBT.
Stupmy. Harbour is a case in point. Since April 2022 after which it began its buy backs its shares have fallen from around 500p to just under 300p. In contrast Enquest has fallen from 35p to 16p. In addition Harbour has paid around 30p in dividends. So Harbour has hugely out performed. Both companies have of course suffered because of the EPL. But the impact on Enquest should have been more muted because of its tax losses. There are many factors at play. But I think Harbour has performed relatively well in part because of its bold buyback programme. It comes down to mathematics in the end. It would be possible to purchase every single share of Enquest using the FCF over the next two years IF the sp did not rise. Quite obviously that could not happen as most holders will refuse to sell at anything like the current price. But we will have to see.
Dumbly,
The shares for EBT would have been created at some point in the future (not bought back from existing share pool). For me what they are doing is efficient…why go through admin of cancelling shares when you know you will need to create them again in 6 months time.
Dumbly , I’m with you on this. Straight talking from Enquest is needed. Puts a question mark on the credibility of its communications.
Great news at long last, those who think this not move the sp are sadly mistaken.
Enq is a low volume share and hence the intraday volatility levels will fluctuate significantly more than they do now.
My opinion only but if these are purchased in one or two trades only the bid/ask will move dramatically upwards.
It’s all very positive indeed.
Https://www.energyvoice.com/oilandgas/547888/increasing-comparisons-be-drawn-1980s-miner-strikes-and-epl-job-losses/
This was an article dated 16/02/2024 "Unions liken EPL job loss impact to 1980s miners’ strikes"
They presciently used a picture of striking Unite members outside Petrofac's Aberdeen office last year. I'm sure the strike didn't help PFC but neither did EPL. Unusually the Union attacked Labour and its plans to fiscally attack the O&G industry.
Today PFC announced there Accounts will be late. It almost certainly means a wipe out of equity holders. Their 15/11/2026 9.75 Bond is priced at 22. The YTM is c.99%. They lose money too.
This together with the damage done to the Scottish economy by their ideological, financially illiterate politicians deserves to be plastered across all media. PFC were drowning so the politicians threw them an anvil.
*I had PFC on a watch list. If it wasn't for EPL I'd be holding them. I really do have sympathy for their shareholders. This country needs companies in the industrial sector.
Hi Dumbly - I'm probably more naive than you. Things I can't change I normally accept. I made (and I may be wrong) an assumption that somewhere in the several hundred pages of an ARA there is a commitment to grant shares to employees as part of their remuneration/incentives. I read this as a positive in that you can't NOT give shares to the employees and these were heading in that direction anyway - that is unless theses are over and above the usual entitlement which will also be buried somewhere in the ARA. I would rather chew my right arm off than search the ARA. It may even be that they thought we would welcome this efficient use of a buyback? I'll stop now as I'm completely out of my depth.
Summer is coming.
Roma, executive directors also benefit from the EBT :
It is intended that the first 25 million Ordinary Shares purchased under the Programme will be held in Treasury for issue in due course to the Company's Employee Benefit Trust to satisfy the anticipated future exercise of options and awards made to employees and Executive Directors of EnQuest PLC pursuant to certain of the Company's existing share plans.
Romaron, chiro, my point is not about an employee benefit/incentive plan, something I am of course in favour of, but that this was a pre-existing liability, so something they had to do anyway. The buybacks announcement did not specify that the first 25m of shares (a third or so of the buyback amount, so significant) were actually already baked in. They could argue the EBT liability is only a potential future liability, based on company results, but that would still not wash, as in that case as the potential liability becomes an actual liability, they should purchase company shares to replace the ones they are purchasing now, and that would defeat the objective of what they have announced. By all means, if the numbers work, buy shares now and put them in the EBT to cover their liability, but that should be separate and in addition to the announced buybacks.
Maybe this could be viewed as all part of the game, smart/clever behaviour – I view it as crafty, and I would not feel comfortable buying a used car from someone who plays with information in this way.
I will wait to fully understand but if I remain unsatisfied, I will indeed raise the matter. I’ve put it in the same file as saying 2023 was a good year based on the big gas discovery in Indonesia😊
Another key observation is that the buybacks for HBR didn't obviously influence the SP. Unless you want to get into arguments about whether the SP would have been lower without them. For me, I'll wait and see rather than assume it'll make our SP fly.
The announcement should not come as any surprise as that is precisely what Craig Baxter said would happen before the end of the month. However, what is new is the reference to the period of buybacks ending on 30th June. If what it means is that 4% of the share capital will be purchased in just 40 trading days then that is quite something. More than 50% of the stock is held by institutions (and AB) which appear to be long term holders. I suspect that the company will complete the programme and then add to it in the autumn. Harbour did something similar. The key thing is that this is very small beer in relation to FCF.
I would kind of like my money back and a little profit from the 23p rights issue before bonus's get paid.
Just saying
Makes perfect sense to use first 25m shares for employees insensitive as what is the point buying shares in the buy back then issue more shares later for employees I for one was glad to see it.
Personally im not focusing on EBT
Regardless of the repurchased share allocation or cancellation , the buybacks now put massive buy pressure on the order book daily
I like that shares are earmarked for the EBT. You need employees with you. I'm not sure if Directors also get shares allotted from EBT or it is separate. There is a certain opaqueness but if it is needed to put the 'master plan' jigsaw together I won't complain. It reads to me that there is flexibility being built in.
Shares are always being gifted and options granted. I prefer the openness (as far as it goes) of this RNS. I read it as preparing for a major change in the company and removing barriers and building incentives in at this stage.
If you don't like it you can bring it up at the AGM but I doubt it'll make any difference. I read it as accepting the company is gonna be here years from now in one form or another. Or better still - load up the EBT for a deal.
We are using Merrill Lynch for the buyback for 2 months. We might not use up all the $15mio in 2 months. The end date of 30 June refers to ML not the buyback as I read it.
I think there is other stuff going on and this is a distraction.