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I calculate that between 30th April 2024 and 31st December 2024 there were/are 164 trading days. To complete $15m of share buybacks by the end of this year, the company needs to spend on average $91,463 a day. In the first 10 trading days it has spent $443,000 or around $44,300 a day. It will need to more than double this average to accomplish its target. But $15m is just trivial. Next year I am hopeful it will be at least $50m for the full year. Easily affordable as costs begin to collapse.
I'm surprised at the very low daily volumes we are now seeing I thought it would have steadily increased over the past 3 months.
We haven't seen any SP gains from the reduction in debt/risk over the past 12 months nor have we seen any positive broker notes, strange considering a great set of results and the announcement of SH returns that the company has never achieved before.
What else do we have to do to be rewarded ... Maybe paint both Magnus and Kraken Orange
Sekforde I might be wrong but I was under the impression that it was up to $15 million and not a total of $15 million worth of shares so we might buy a small percentage of the amount people are expecting, monkey
Monkey that would probably be seen as a fail by the market so I very much doubt that
From YE Results “we have committed to deploy $15.0 million of capital in a share buyback programme during 2024." That seems fairly clear, so yes they need to crack on but obv. ML are wanting value for money so not looking to push the SP.
Even to get this done by year end in 166 trading days remaining, using current SP & USD/GBP, ML would need to nearly double their current daily average of 258k shares / day.
But the SP is stable, without them doing very much. So more to come...
Based on 174 trading days and a daily RNS cost of £250, that would be £43,500, the number of buybacks is getting smaller by the minute. Having announced buybacks, I would have thought that it was in the company's and investors interests to get as many buybacks in prior to the next update?
I stand corrected,yes it's $15 million in 2024,,the memory is failing!!!! Monkey
It's occurred to me that the authority to buy-back shares expires at the AGM, 30th June, which coincides with the expiration of the ML agreement. Since it's not a given (they can't just assume) that a new resolution to buy back share will pass, surely they must get the $15m done before the AGM ?
Yet there's no sign of that happening, with ML plodding along at 250k shares/day.
Any thoughts ?
Any thoughts?
The volume traded yesterday was abysmal.
There is a correlation of buyback to daily volume and it will always be a percentage of this.
EnQuest aren't in the trading game and (currently) are the only BUYER of EnQuest stock.
If they need a refresher on buying it will be a formality at the AGM. It will pass.
Buybacks in BP or Harbour follow/followed a similar pattern.
If EnQuest bought in one tranche it would distort the market and there are no doubt restrictions on this both legally and technically.
Buybacks don't affect the price immediately as they are just moving our cash into another asset (up to $15mio) and have their detractors as well as supporters.
Buybacks are a sop (sometimes) to shareholders and indicates the management have run out of ides or more likely as I like to think give a company breathing space and time for strategies to form and landscape change (EPL & investment rates).
A buyback indicates that management think shares are cheap but then they would say that.
In the scheme of things $15mio is peanuts.
The AGM is on 30th May!!
Previously a resolution was passed to buy back up to 10% of ENQ shares in any year, I presume this still stands or the BoD will need to allow investors to vote on a new resolution. One presumes that the buybacks can continue after the AGM, perhaps for another set period. I don't think the BoD would want to delay the buybacks, the amount is so small and therefore it would not look good in the eyes of the market. The BoD has pretty much hit or exceeded all other targets despite EPL.
The sp is still well above $80 and I think will rise again in the remainder of H1 and in H2. 15 days to AGM, less to update.
Romaron, I take all your points but I do not understand why they have mixed up the 25m shares for treasury with the buybacks, surely they should have just bought the shares and then started the buybacks?
AoK - you're just repeating an old point. I said at the time it ties up with options and share allotments to Directors and staff. It is just accepting that the company6 has options. I'm not interested.
O.K. Romaron, you are not interested and you don't need to respond to this post. I accept the point you made and the fact that the subject has been discussed on the board. However, does it not occur to you that the BoD may have realised they had "options" after announcing the buybacks regarding share allotments etc. My question is - why did they not simply buy 25m shares for the ENQ treasury? Do the same rules apply as with buybacks? Why water down the already limited value of buybacks, it did not seem necessary?
In summary, I think the BoD realised they had an option to allocate some of the buybacks to meet the upcoming requirement for allotted share, why not, but in doing so they unnecessarily raised some little or relatively inconsequential questions.
I think the whole treasury/share options thing is completely normal in a lot of firms - no-one that i know of seperates this out so enquest’s decisions seem completely in line with market
As to slow rate of buy back - again - overthinking is pretty common here - mls and enq have (again like other companies ) agreed on a schedule which will definitely take into account trading volumes. As i mention before there is an msci rebal trade end of this month - on the last one (in feb) enq traded over 83m shares and more volume trades around the actual day as well - as banks position themselves - mls will 100% be aware of this rebal and discussed with enq
Looking back the buybacks are basically 10% of traded volume on each day they’ve been active - its just super quiet but as we approach end of may you’ll see a spike due to the msci rebal
Seems to be 1 step up 2 straight down at the moment, Its days like today when the buybacks should be mopping up all the sells but ML will most likely sit on their hands
Brent now fallen through support on the news of IEA cutting demand forecasts, I bet they will follow up with a big Inventory build this afternoon
Hi AoK, sorry if I sounded brusque but the minutiae of the buyback process is a distraction and any questions can be answered by IR or at the AGM. It still seems (to me) a sop to placate us long-suffering retail shareholders.
What it does highlight is the lack of any other Buying interest in EnQuest. The 3 "D's" are always with us and nobody following the media would willingly invest in UK O&G producers. It is frustrating but must be equally so for the EnQuest management as artificial hurdles are added to what is already a sunset industry.
The political landscape is as hazy as ever and almost impossible to predict. The Ukraine was is being ignored along with energy security imo. I think Europe is being insouciant regarding potential dangers.
I am reading "Assignment To Catastrophe" by General Sir Edward Spears which was published 70 years ago and covers the period August 1939 - June 1940 . We didn't have NATO then but there were alliances that crumbled very quickly and to say the Allies were unprepared is an understatement. History does rhyme.
The past is never where you think you left it. -Katherine Anne Porter, writer and activist (15 May 1890-1980)