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At 148p. Fully back in now after selling at 171. Thank you so much sellers
This stock is now keeping me up at night... What a mess
Government has absolutely killed this stock along with a bit of bad luck operationally on the assets.
A far cry from the glory days at RRE. Still looks overvalued at these levels to me given such material tax and decom liabilities. UK and Europe is just no longer attractive for smaller E&P and Kistos has clunky declining assets with large future decom costs . Scandi is better but the tax rate is obscenely high and isn’t overly lucrative for Kistos with a 10% stake.
Where is the 148 million net debt info found?
Https://kistosplc.com/investors/presentations/
looks like guidance of around 8 kbpd for 2024
and also that assumes the joton Fpso starting up in summer 2025 not 2024. so Kist reckon it will be more delayed(not what annual report said,,, and not what var are saying)
Kistos (LSE: KIST) has said it is “now undergoing a recycling of project economics” at the Greater Laggan Area due to changes in “the cost environment.”
Glendronach is the project in question, despite having previously passed all technical stage gates with the operator TotalEnergies and partners.
Previously Kistos has said that “adverse changes” in the fiscal environment within the UK meant that TotalEnergies’ Edradour West would go ahead, rather than the previously expected Glendronach.
Kistos has now said in its 2023 full year results that the Greater Laggan Area (GLA) partners are “progress options for the Edradour West development”.
The North Sea oil and gas firm added: “Both of these projects have so far exhibited accretive economics and would utilise the existing GLA subsea infrastructure and the SGP [Shetland Gas Plant] if they are approved for development.”
Kistos has claimed the Edradour West development will increase its 2P reserves by 3.8 million barrels of oil equivalent (MMboe).
TotalEnergies has been working on the Glendronach and Edradour West projects – the former being a 100 million-barrel discovery.
This comes amid rumours that the French Supermajor may be looking to vacate its position in the GLA project.
It was said in September last year that a sale of the assets by TotalEnergies would continue a trend of oil majors and private equity firms leaving the ageing North Sea.
However, the oil and gas major refused to comment on this speculation at the time.
Kistos added that the joint venture partners were also evaluating other infill drilling opportunities on the Laggan and Tormore fields.
Andrew Austin, executive chairman of Kistos, commented: “2023 saw significant changes to the operating environment with commodity prices sharply down on the previous year and an increasingly restrictive fiscal regime in the UK.”
Kistos is not the only UK oil and gas firm to hit out at the UK’s current fiscal policy.
The UK’s largest producer of oil and gas Harbour Energy, alongside others, has previously called out the Energy Prfits Levy which raises the headline rate of tax for oil firms to 75%.
Last week the Kistos chairman said oil and gas firms are being framed as the “devil incarnate” as general election rhetoric ramps up.
Mr Austin later added: “As a management team fully aligned with shareholders, we remain focussed on seeking value for our investments which complement our existing portfolio and offer value-accretive upside.”
The chairman said that his firm has made moves to diversify its portfolio as the UK oil and gas market has become a more challenging environment to invest in.
Last month Kistos acquired a 100% stake in EDF Energy’s gas storage company, resulting in the firm picking up two UK storage sites.
The deal was signed for a total consideration of £25 million, paid from existing cash resources.
Tulip bought for 155m (2021 accounts) and they have now impaired 179m relating to it,,, that is definitely not been a good acquisition. who believes that orion and m10-11 will go anywhere?
AA paid himself best part of £1m in 2023 according to the renumeration report,,,share price now is what placing price was when tulip was bought,,,, not exactly adding value for shareholders
GD
Net Debt 24m at 31 dec, but 148m at end Apr.
That’s quite the increase in just 4 months,,, no wonder the auditors have said there’s uncertainty over going concern at that rate,,, cash might run out before the tax rebate comes back and don’t forget the “solidarity tax” issue which is meant to be due now even if AA thinks he’s not paying it, taxman always gets his way!
GD
I agree 2025 could be a defining year if it all goes to plan. But that’s the problem - of late KIST acquisitions have under performed. Add the unknowns of the general election & labour plans.
Will sit & wait to see how this unfolds until Q4
Same here, i invested at the start, we had the crazy spike during covid when the price got ahead of itself. 2025 will be a defining year need Baldur to come on stream as planned late 2024 and also Victory field for shell will reduce costs of SGP thats when the metrics should change. Add in the bonus storage facilities.
Thanks for sharing your view.. To be honest that's why I invested here as it seemed to be a promising company with a strong leader... Other contrary views appreciated.. Thanks
I'm sitting tight. I've invested in AA rather than Kistos the company, as I've done before.
He has a lot of skin in the game and will find the way forward. He's also one of the few I believe when he spins the line about maximising value for stake holders. The last deal shows that he knows how to think outside the box.
Hi Eager to get people's views... I am down 60 percent on this stock circa 7k...its a total mess... What are people's views in the future... I obviously wish I had never touched this stick but eager to know what other investors are doing... Thx
Netherlands €13m (reserves downgrade)
Norway €0
UK €46m (€33m Benriach, €10m Rosie and Cardhu licence relinquishment, €3m goodwill associated with the licence impairments)
The cumulative impairments in the Netherlands since the acquisition of Tulip Oil in 2021 are €179m.
aimo
stephen *****: north sea windfall tax was right then but now it risks jobs
by erikka askeland
13/05/2024, 7:00 am
© kenny elrick/ dct memsp for aberdeen south stephen *****
snp westminster lead stephen ***** at invest abz. chester hotel. supplied by kenny elrick/ dct
aberdeen south mp stephen ***** said the windfall tax on uk oil and gas had been the “right thing to do” but proposals to increase the burden would stymie investment threatening jobs now and in the future.
*****, the snp’s leader at westminster, was speaking to energy voice at a breakfast event in aberdeen where he was a keynote speaker.
the invest abz event and workshop featured speakers and panellists including *****.
© supplied by kenny elrick/ dct me
snp westminster lead stephen ***** was a key note speaker at invest abz at the chester hotel. kenny elrick/ dct media
the windfall tax imposed by the uk government had been “the right thing to do” in the wake of russia’s invasion of ukraine.
but current – and proposed – tax increases and extensions would “tip the balance” preventing industry investment. this could risk hundreds of thousands of job losses, he said.
jobs today and tomorrow at risk
he said: “i don’t think anyone would shy away from the fact that a windfall tax was the right thing to do following vladimir putin’s invasion of ukraine and the skyrocketing we have seen in relation to energy prices.
“but what has been proposed, either from the uk government with the extension of the windfall tax or the labour party’s proposal in relation to enhancing the windfall tax and removing incentive allowances, is it tips the balance into a position where it is no longer preferential for industry to seek to have investment into new projects.
“if you don’t have that investment into new projects, that means you don’t have the jobs of today which will also be the jobs of tomorrow in the net zero industries.
“the consequences could be huge. it has been spelled out by the industry itself in relation to up to 100,000 jobs that could be on the line.
“it is my job to make sure those in westminster – to people who make those decisions, be it in the conservative party at the moment or potentially a future labour government – understand the consequences of those actions, that we speak up for aberdeen and we speak up for scotland in this regard.
“because this is crucial to our journey, not just to net zero, but to our wider economic future.”
scotland’s new government is “serious”
speaking about the recent change of leadership in the scottish government and its potential impact on the north-east, he added the new first minister john swinney was a “serious politician for serious times”.
swinney became scotland’s first minister in the same week ***** spoke at the energy voice event.
the new first minister replaced humza yousaf. his leadership collapsed after he ended the bute house ag
Net debt is Eur24m.....
In Norway, Kistos' share of cash capital expenditure was €77 million, which was primarily spent on drilling for the Balder Future project, refurbishment costs on the Jotun FPSO and associated subsea facilities. Capital expenditure in Norway is relievable at an effective rate of 78%, with any tax losses generated during the year creating a tax credit that is receivable as a cash tax rebate the following December. The receivable in respect of 2023 Norwegian tax losses (primarily generated by capital expenditure) is anticipated to be approximately €80 million, to be received in December 2024.
Due to the significant capital expenditure being incurred on the Balder Future project, tax losses have been generated in Norway. Unlike the UK and Dutch tax regimes, whereby tax losses are carried forward and only offset against any future taxable profits, tax losses in Norway result in cash tax repayments. After receiving NOK 857 million in December 2023, Kistos expects to receive over 900 million NOK (€80 million), not including accrued interest, in December 2024.
Due to the significant capital expenditure being incurred on the Balder Future project, tax losses have been generated in Norway. Unlike the UK and Dutch tax regimes, whereby tax losses are carried forward and only offset against any future taxable profits, tax losses in Norway result in cash tax repayments. After receiving NOK 857 million in December 2023, Kistos expects to receive over 900 million NOK (€80 million), not including accrued interest, in December 2024
Sold this just above 170 as I was expecting this drop after the results. I think the current price is already pricing in the worst case scenario. Bought half back just below 160p, let's see where it goes from here.
I'm referring to the material uncertainty comment rather than the net debt, which is as you say.
I'm also not trying to ignore a pretty poor set of results. AA needs to get his deal making boots on because Kistos needs to kick on. If that means moving out of the North Sea completely, or an even bigger transition into alternatives, then so be it. If value for shareholders can't be delivered through the intended route then find another one as he's done with the onshore storage.
The UK Government has played its part too. It's trashed our North Sea producers to appease a minority of moaners and as for their carping about Energy Security well we're going to have none, so forget it. In the end we'll pay more to import it from other countries that have lower environmental parameters in production so not only will we have supply risk, we'll be out of pocket and we'll be killing the planet quicker too. Well done UK Gov, great strategy, but hey, it got you some votes.... a shame keeping the lights on tomorrow is too far into the future to worry about.
You were last seen de ramaping this at 140p, this morning its 160p. Keep going as each tome you appear here the SP goes up.
You’re fortunate Jeffrey to only be a further 9% down this morning, the read is far worse than that
As a management team fully aligned with shareholders, we remain focussed on seeking value for our investments which complement our existing portfolio and offer value-accretive upside."
Keep the faith
Remind me please? I am already 60 percent down on this dog
It’s in the rns… €148m net debt is quoted by them not me
And a material uncertainty also. This maybe another igas… remember what Andrew Austin did there!