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Sek, the RNS does not say $15m WILL be spent before 30/6/24. It says:
“EnQuest PLC (the "Company") announces that it will commence the share repurchase programme of its ordinary shares of 5 pence each (the "Ordinary Shares") of UP TO $15 million (the "Programme"), as first announced at its full year 2023 results on 28 March 2024”, and
“ While the Company has launched the Programme, there is NO CERTAINTY on the volume of ordinary shares that may be purchased OR ANY CERTAINTY on the pace and quantum of purchases”
I see no evidence in the RNS that there will be a further and new Programme (although, it’s a good bet there will be, just we don’t know from when).
Steel, there is no evidence in the RNS that the shares to be allocated to the Treasury represent the first phase of the Programme. ML will buy the shares they decide to buy and the first 25m will be allocated to the Treasury – ML has no say in this internal allocation.
It is more likely that there may or may not be more than one phase of the Programme depending on whether ML manages to buy the full $15m worth by the end of their mandate.
More interestingly, what are the conditions that could exist for ML not to be able to buy the full $15m during their mandate? To note “ Merrill Lynch will make its trading decisions in relation to the Ordinary Shares independently of, and uninfluenced by, the Company”. So, again, why would ML not be able to buy $15m of shares in the next 2 months? Either unavailability of shares or the price is wrong. Effectively the same thing, no? And if the price is considered too high at any point in the next 2 months, does that mean ML expect it could be lower later? Thoughts?
As I read yesterday's RNS, the first phase relates to the first 25m shares bought back to be held in treasury for later distribution. The remaining 45m will be cancelled:
"To the extent permitted by law, and after the initial 25 million Ordinary Shares are purchased, all additional Ordinary Shares purchased under the Programme will be cancelled."
The way I read the somewhat cryptic announcement is that the $15m will be spent before 30th June 2024 and that is the first phase. It will be followed by a second phase which is justified because of the huge amounts of cash being generated at $87 brent. $15m buys around 73m shares at the present price. So we will see the buying crank up as we have only around 40 trading days to spend the $15m. But who would be a seller at these levels when the FCF in 2025 could be around 12p a share?
Profit, perhaps it means simply that in the instance ML does not buy shares up to the maximum for which they have authorisation then there would one or more subsequent phases of the same Programme?
Hi Kraken
It's quite clear that ML are authorised to buy up to $15m from 29th April until 30th June. If there was any other dealer/broker involvement in the $15m buy they'd have said so in the RNS.
Must admit though, I don't know what "The first phase of the programme" means. The implication is that there are subsequent phases, but no mention of it in the RNS.
Enquest in a strong position To take advantage of some of the distress caused by EPL.
Hey all, brilliant post Jan and I’ve held for over 18 months now excluding around 5 quick trades which 2 were successful and three weren’t 😆 I’m currently
sitting at a 1.64p loss per share with a very large amount of shares held (well what I deem eye watering anyway).
I may derisk some around 22p-23p, but even then I firmly believe that it should be hovering around 30p as a conservative estimate.
Fantastic crew here and I must say it’s a real rarity to see based on my previous experiences over the years.
However, I do not get any time to look at any other boards apart from Enquest nowadays.
Have a good day all and let’s see the sp sails through 17p over the next few days.
Redbuffet you’re the embarrassment on the board.
Deltic in trouble, down 44% today. From the RNS:
"The feedback from Deltic's Pensacola farm-out process has indicated that the continual tinkering with the Energy Profits Levy and resultant fiscal uncertainty created by the current government, along with recent rhetoric emanating from the Labour Party, have had a severely negative effect on the ability of UK Exploration and Production (E&P) companies to commit to long term investments in the North Sea. This has resulted in many operators diverting capital away from the UKCS or delaying investment decisions, especially with respect to new large-scale opportunities like Pensacola.
Against this hostile political environment, and despite the Company's best efforts, Deltic have not yet been able to secure a farm-out partner for Pensacola and although there are a number of live discussions with respect to a way forward on Pensacola, there is a risk that a farm-out may not be secured before the end of May 2024. We remain of the view that Pensacola represents an excellent value-driven opportunity for the right partner and would be willing to engage with any additional potential partners."
From Energy Voice. It seems that the SNP exaggerated the number of 'Green jobs' they promised with their freeports. No surprises there but weren't the media following Labour around the country recently taking pictures of Keir, Ed and Rachel in Hi-Viz jackets and helmets at ports around the country?
Is this how a pack of cards collapses?
Not so sure he's been hypnotised more like locked in.
“With the Malaysian production sharing agreement called out as one for sale, it seems to be the more volatile parts of the business that are up for grabs first.”
https://www.energyvoice.com/oilandgas/north-sea/552529/petrofac-asset-sale-on-the-cards-over-debt-challenges/?utm_source=Sailthru&utm_medium=email&utm_campaign=Energy%20Voice%20Daily%20Newsletter%20A%202024-04-30&utm_term=Energy%20Voice%20-%20Newsletter
AB founded Petrofac Resources in 1998 and EnQuest was partly formed by PFC spin out in 2010. I imagine he knows what is going on there better than most.
Hi KO,
No I think it means that this is just the beginning of a much larger buy back programme over time/years and this first phase is being handled by ML . This then does not mean that Enquest will use ML in future programs. I expect to see a much larger buy back program for 2025. Maybe using ML, maybe not. Options open for Enquest.
All the best, JAN
Enquest have a $15m buyback announced at YE2023 results
They have an authority from the last AGM for 10% of shares
They don’t need to buy all $15m before the AGM where they will get renewed authority.
Buying the shares into treasury for the EBT makes a lot more sense than cancelling shares and then subsequently reissuing.
A lot of emotive posts on this board re sleight of hand and duplicity etc. all a bit embarrassing.
The first phase of the Programme will be carried out through an agreement with Merrill Lynch International ("Merrill Lynch")
Does this suggest that ML may not use all the $15m to purchase shares in the allocated period?
I remember when BTFATH1 just used this share "in and out" for profits to buy golf clubs, weekends away , meals in restaurants etc.
Now like us over time He has been hypnotised and blinded by Enquest's beauty!
Good luck , BTFATH1 you have joined AB's merry men of LTH's.
Let the fireworks begin papegoga and there is just another 72.85 million to go. With a low volume share like we have, this will really move the sp intraday.
Remember the 15 million dollars of buybacks is just for starters.
So excited for the future here.
No chance of that Papegoja !
I've seen buy backs in action before (VTY just started) and they start small and ramp up. There was plenty of liquidity yesterday and they chose not to wade in. ML have a reputation to protect, and if they are instructed to buy $15m then $15m they will buy.
156,000 shares repurchased at a price of 16.23. Good luck with the remaining 73 million shares in two months. I hope all LTH can keep their cool and not sell too early
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