The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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I've just spent the best part of a three hour flight reading the latest report, I'm not impressed. I see Benitz is now paying himself almost double what he was last year whilst shareholders have witnessed the value of their holdings almost halve. Utterly tone deaf, and confirms everything I've always thought about the guy. But my biggest concern now is that the leaders of JOG are now significantly detached in their interests from shareholders - IF (and yes I don't say it's a foregone conclusion) Neo/Sqz say "No!" at FID, then it is in the interests of the directors to just string this along for as long as possible in order to draw out salaries at this high level (or higher, who knows what they will pay themselves next time). At this rate, I suspect Benitz&co will have extracted every penny and more that they've invested into the company via salaries and bonuses. It's now effectively a risk-free gamble for a big capital gain for them; shareholders not quite the same: it has to more than double for some unfortunate folks to get their money back, let alone make a profit.
Much can be said about how we reached this point, and the despicable people who inhabit the Westminster environs, but I'm afraid I take this recent info about salaries here as a large FU from the board to the shareholders. For a long time I called for an EGM to oust Benitz, I'm no longer that interested, just looking to get my remaining shares sold and move on from this. I can only imagine how people like RL feel, having millions invested here and no credible path to divesting.
Good luck all.
Directors pay near doubling from 2022.
IC view, a good opportunity for bottom price fishers.
https://www.investorschronicle.co.uk/ideas/2024/05/13/jersey-oil-gas-still-has-multi-bagger-potential/
True, the negative sentiment towards the UK oil and gas industry has driven Jersey's share price down from 365p when the first farm-out was announced in April 2023 to well below the 205p entry level in my 2019 Bargain Shares portfolio. However, priced on a 76 per cent discount to the average risked net asset values of Zeus (616p), WH Ireland (705p) and Cavendish (534p), bottom fishers should be well rewarded from this deep value play. Buy.
Just read the highest paid director section - WOW - no wonder there has been no comment for months - it is clear now why one LTH has jumped ship - 2023 was a "transformational year" for the directors - not so for shareholders.
Double it by 100% bonus. Tough life. Shareholders have no say.
The trouble with ST's assessment, and with the "risked NAVs" the ANALysts have come up with - which are not "risked" in ways I understand - is that they don't seem to take into account the risk that Buchan doesn't get off the ground. The "Buchan Project" NPV10 I calculated, based on numbers JOG has given us and what Labour have told us they're going to do (which I've assumed doesn't disallow Capital Allowances altogether, which is what Miliband has said they will and no-one has contradicted him) shows a minus NPV of £0.5bn (I used forward DCFs for 9 years to get to that number). The half a billion is to split between NEO and SQZ. Would you say "yes" to these numbers when it came to FID? JOG has a +ve NPV (around £4ps if the oil comes to the surface) because it wouldn't have any capex.
The hope is that JOG sells to an E&P that is more interested in energy security than losing everything it might make in tax (don't kid yourselves the EPL will ever be lifted - there'll be even more Greta Thundertwats than ever by 2030 and Britain will be under the control of the IMF, which will forbid the relaxation of any taxes, so desperate will it be for cash to give to life's shirkers and people who've spent all their vouchers and will be mercilessly after yours if you've been daft enough to save anything for a rainy day.
I'm outta here if I read any more nonsense about buying into renewables (off the shores of the holiday isle). Utter folly - Jersey itself would probably go bust trying. Never be a pioneer - invest into something that finally makes it about 4 tries down the road in about 20 years' time.
My advice? Convert whatever you've got into Krugerrands and hide it somewhere where Labour's sniffer dogs won't be able to find it. Leave the country before you die, but FFS don't forget to take it with you.
Cash alone will be worth close to £1 a share post FDP approval, so no point selling at 145p. Then there the tax losses (c.£70m @ 40% = £28m). Oh ........and didn't someone say JOG has 25mmboe of 2p (on FDP approval) 33° API sweet light crude that will come out at some stage - not sure in whose hands?
It's worth listening to the linked lecture - frightening, but educational
https://www.youtube.com/watch?v=ClDrkcSfKjk
DU - why then did Serica farm in, and is Neo keeping development going? I think you have to work on the basis that Labours hand will be forced by the rapid decline of NS.
Serica closed the FO and paid multi millions in full knowledge of the statements made by Ed.
PS I do not except JOG to want to fund a windfarm.