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Predators alwayz come when feel free feast :)
Small fish realise to late whats going on.
Some more seriously chunky trades today. Does anyone know of anything happening at the moment that could be behind this sort of volume?
Looks like some profit taking to me. Bid moved up almost 2% today. Also looks like a large buyer too. Still low volume though.
Also a lot of selling. Something a bit odd going on...
Thats a lot of buying... 18h must have hit oil already
Agree on retaining a contingency fund, but one needs to keep in mind we'll have +$100m in the bank at the end of Q2. That's one hell of a contingency fund when the sp is below 50p. My shares are in an ISA so nothing other than 15% tax for me, which is why I don't mind the increased dividend option. But if they increase BBs to the maximum allowable amount and retain the base dividend I'd be happy. They have the money to do it, and you should only do it when there's a disconnect like what we're seeing now. Either way they need to do something. The sp is a joke given production and cash in bank. Brent also doesn't look like it's going to do anything silly. Having said that I'd hedge a decent chunk of production (about 1/3rd) in the mid 80's right now. Doing so at a good historical level will protect the dividend, BBs, and the contingency fund. Would be silly not to do it. AIMHO GLA
I'd be happy if any top ups over the Base dividend were diverted into buy backs. As long as they don't simply buy back regardless of share price.
There are times when buy backs are very good value, and times when they are poor value.
I do get the 45% tax issue. However, as mine are in SIPP and ISAs I only lose the 15% tax against the buy back option to return capital.
Buy backs are not my real issue, I like them. I also like the company retaining cash in this volatile financial environment as they face a few risks that could need short term contingency funds. Suggesting they should reduce their contingency funds is not sensible IMO.
Rylidan, let's say you have 91.500 shares. And then the company reduces the number of shares through buybacks from 915 million to 800 million, while paying you 5% in dividend. You could then reduce your share count to 80.000 and maintain the same ownership of PTAL and the same dividend (in £, it will increase per share). YOU now get to decide when to sell and pay taxes.
I'm paying 42% on dividend & share income. So delaying taxes in very welcome. That's most efficiently done through share buy backs. I'm disappointed that they're allowed to buy back 44 million and fall so far below the target - getting extra dividend on top of the 1.5 US cent is nice, but paying tax prematurely is not. And as G_G_G mentions; when the cash flow is so strong and P/E so low, it's simply stupid not to do buy backs if you want to build LT shareholder value.
I'd like to increase my ownership; but I prefer to do so via share buybacks. Buying more shares isn't attractive for me, with the 42% dividend tax. So ATM my dividend is going elsewhere; if they were serious about buy backs and really did go for 5% per year (or at least 40 million) I'd use the normal dividend (1.5c less tax) to increase my position.
18h comes on stream in 2 weeks.
I tend to disagree with you GGG. This would be around 4p ps capital return. Far better to have contingency against the risks that exist, and to underwrite the 1.5c base dividend regardless.
I use this as part of my pension and a stable return of 10% minimum is important.
If they could get an RCF at less than 3% I may see your view. In the current financial climate that is unlikely.
The new Finance Director may of course not be as conservative as the current one.
We'll see.
Either was looking I'm very happy holding here. It's an easy hold and build for me.
G_G_G - they've got permission to buy back 44 million shares. And people think they're aiming for that limit - but they're not; they're only using 1 million/month. I've asked #PTAL IR about this, but they've yet to answer. They answer most questions, but are not always fast. I'd encourage you to ask them as well.
Anyways, the current program runs out May 17th so I'm sure we'll get an updated program soon.
Last year, they stated: "The Company believes that, at times, the prevailing share price does not reflect the underlying value of the common shares and the repurchase of its common shares for cancellation represents an attractive opportunity to improve PetroTal's per share metrics and thereby increase the value of the common shares." The price is not much higher now (though we got a load of dividend, don't forget - but production is much! and brent is a bit stronger). So it's even more true now than it was last year.
From the latest update re. erosion: "Erosion Control Update: The Company is progressing its preventive erosion control program aimed at protecting the Bretana oilfield and nearby community. PetroTal expects to commence project construction in mid to late Q3 2024; while permitting is ongoing, detailed engineering is being finalized, and long lead items are being procured" - so that's not what's limiting the production now.
I'm unsure what their allowable limit is on buybacks, but they need to throw some of their cash at them. In general I think buy-backs are a complete waste of time and money. However when a company is this under-valued, illiquid, and has so much cash in the bank, it's a no-brainer. However it has to be done in a way where they are taking 5-10% of shares in issue off the table each year. Otherwise it's a complete w@nk, like now. Either push the BBs to their limit, or give the cash back to shareholders with increased quarterly dividends. But having it sitting there doing nothing is plain stupid. GLA
The number of shares is irrelevant its all about market cap. its the most frustrating share with all that money in the bank, shipping 18,000 bopd at around $88 , thats $1.8 mill pper day, we should be at 65p minimum..
Shares Buy back program is a joke - it will never reduce the amount of shares in issue - it has failed - time for a new bull in the ring - REVERSE SPLIT