The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Dept has not been revealed. Looks like they will need to invest more though
22 was an exceptional year
JWB, you have posted 3 times this morning, asking the same question, may I suggest you email AA, he's always forthright in his reply's.
aimo & dyor
Good deal afaic, why spend £25m on O&G extraction at EPL tax rates when you can bypass that and still trade the commodity, thus more profit.
aimo & dyor
"Onshore salt cavern opportunities
Key opportunities for investors include gas trading arbitrage, long-duration storage and interseasonal hydrogen storage.
Gas trading arbitrage
The primary role of gas storage sites is to store gas for periods of high prices (that is, trading gas by buying at low prices and exporting at high prices). This was why EDF'S Cheshire sites were developed in the first place, and the gas markets are now much spikier than they were.
Long-duration storage
EDF looked at the potential for compressed air storage at both Hole House and Hill Top Farm some years ago, and long-duration energy storage (LDES) is now very much on the net zero-inspired agenda.
It is regarded as one of the key mitigants between high output/low demand and low output/high demand periods, brought about by an increasingly intermittent renewable-backed energy system.
The economics for EDF's gas storage sites did not stack up a few years ago, but last year they received funding from the Department for Energy Security and Net Zero (DEZNZ) and the government is very motivated to explore LDES as a proof-of-concept.
Interseasonal hydrogen storage
Interseasonal hydrogen storage is the real sweet spot for a future decarbonised energy system, which needs hydrogen to play a role in storing energy (hydrogen is an energy vector) between seasons: capturing hydrogen produced during high-wind peaks for use in low renewable/high demand periods. This is where hydrogen is intended to displace the role currently played by gas peaking plants, and open and closed-cycle gas turbines."
Very interesting read below from a couple of months back;
https://www.lexology.com/library/detail.aspx?g=82ecc181-7225-4757-8245-5902a5090682
"The operation of gas storage sites, particularly in salt caverns, is less simple than might first appear. However, the opportunities introduced by a net zero energy system are significant, and gas storage in salt caverns is one of the few credible solutions to both LDES and the interseasonal storage of hydrogen, making it the perfect complement to a renewables-dominated energy system."
I dont do conspiracy theories. Take it for what it is....
For me it looks like a good deal, with additional diversification and growth potential
My Concern is this is “deal for sake of doing a deal” and to distract s/holders from the massive Norway cost overruns and likely reserves w/down elsewhere
as Dutch assets underperforming and GLA making no £ due to WFT (what’s happened to other developments? Orion, Glendornach, M10 etc always seem to be “jam tomorrow” but never progress)
rgds
GD
Get your point GD. I do trust AA and team to make good commercial decisions though. Opportunity knocks
Be good to get an interview re the purchase and provide some more colour
Hmmm
I'm sure he is looking at the value creation possibilities but I would have preferred the 25m being handed back to shareholders which I'm sure would have had a very positive impact o the SP.
One way or another this shows the crazy vacation of Kistos. He just spent 20 odd pc of the current market cap on a Cheshire storage facility. Either the market has it very wrong or he has!
But A £ 7 million loss in the year before ! So risky and at mercy of traders ability. Technical failures could also risk losing all gas and force unwind of trades I guess.
2022 a good year for traders with volatility.
Can’t be making£32mill a year consistently or would never have sold for just 25.
What a good deal. Looks like payback will be around c10 months. Paid £25m. Assets returned £32m pre tax in last 12 months (based on 2022 full results)
Interesting. AA is anything but predictable, other than his predictability in finding a deal somewhere.
Old news but, “I expect Mime to be a platform for growth on the NCS and I believe Mime’s management team – whose strategy and goals are aligned with ours – can help us achieve that. Critically, as well as providing us with visibility on a rising production profile over the next few years, principally though it’s oil, the hydrocarbons produced at Balder will also enable us to maintain our industry-leading Scope 1 and Scope 2 CO2 emissions in the medium-term,” added Austin.
There is also, tax relief is available on this expenditure at a rate of 78 per cent.
I’ve posted this because I can’t believe the constant selling. Do they know something that others don’t know?
Kist will be an absolute cash machine next year............Divi's ahoy
See slide 12.
1. Subsea production systems, subsea umbilicals, risers and flowlines over 80% complete. All subsea equipment has been delivered.
2. 10 of 14 producing wells complete.
3. 150mmboe of gross 2P
4. Gross peak production rate of 78k boepd
5. Most eye catching for me was the estimated production cost of ~$5 per barrel
https://varenergi.no/wp-content/uploads/2024/02/Var-Energi-Q4-and-FY-2023-results-presentation_.pdf
I also added my first holding and came up as a sell at 141p. Just wish Kistos and Serica had "merged" last year!! Still time.
Sail away estimated to be August 2024 and first oil estimated to be Q4 2024.
From Var's Q4 results.
"The upgrade of the Jotun FPSO1 is ongoing with high construction activity at the Rosenberg yard. The Jotun
FPSO is more than 90% complete. Solid progress has been achieved in increasing pace of construction work on
the FPSO, with overall progress only slightly behind the revised plan and completion of the project is in sight.
Current focus is on executing the remaining construction and commissioning work. Drilling and subsea facilities
activities are progressing according to schedule.
The Balder X targeted start-up is moved to fourth quarter 2024, based on inshore sail away in August 2024."
The production at Balder has risen from 16k boepd in Q1 to 25k boepd in Q4.
All looks good to me.
aimo
I also added came up as a sell.
KIST now looing to cheap to ignore. Picked up my first tranche since the RR days
There maybe a reluctence by investors to invest in KIST due to UK election unknowns, labour winning wont improve sentiment. The upcoming KIST update will hopefully inform us where they see the business going and current cash position and debt.
We can only hope that patience is the key here. I've been holding since early 2021, and it has been quite the rollercoaster ride.
Mkt cap now less than 2025 FCF forecast. Nuts..
The recommendation A. J Bell gave is information that is from the Kistos website. Looking forward to 2025 which is what I am doing. I expect something to have taken place before then and the sp to have turned. If the right deals come along I’m sure AA will respond. You either still have the faith or not.
I'd still rather is was tipped than otherwise
I would not read too much into an A J Bell recommendation, after all a couple of years ago they gave IOG as a New Year tip and look what happened to them. You can't beat doing you own leg work on a company.
Good luck to the investors here, I was a Serica shareholder when Kistos came shouting, still shake my head today at Mitch Flegg walking away.