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Norma it represents a significant premium on aquistion price and not disclosed in the very short prospectus.
Also with oil prices much higher for last 18 months hedge seems very low. ! Probably arranged on our behalf by Mecuria :) They really saw us coming.
Non disclosure of dividends will be interesting Snouts in the locked box :)
So in reality we are now left with approximatly 250 milion cash to date. my only concern is what is our current tax bill and will oik starmer and his concervative cronies grab all the cash going forward.
Required by lenders?
It does strike me the financials are for SQZ only. They are excellent. Just like Brexit the deal has happened we need to get on with it.
Pleased with Tailwinds contribution to Q1 production to add balance
Tailwind realised price in published accouts was really high circa $100 I recall. There production being hedged at $58 is as others say is news to all of us. Material consideration to the deal. The mention of non disclosure of dividend picked up by auditors is fishy.
For me these accouts show a clear divide between a standalone SQZ high reward low risk with unchartered territory with many risks we have now chosen to frequent.
Personally i cannot complain with a 14p dividend. let us just hope that the market does not adjust the share price accordingly.
Inmv The government could prove to be in the wood pile or the white heron .
Tailwind acquisition completed in late March 2023 and is already contributing strongly to Serica's combined reserves growth and production rates as well as better diversifying the Group's offtake routes and commodity balance and offering a range of near term investment options:
o updated Tailwind reserves report shows increase in 2P reserves from 41.8 million boe at 1 January 2022 to 55.5 million boe at 1 January 2023, replacing 2022 production four-fold
o Gannet GE04 well onstream in February 2023 at initial production rates above 10,000 boe/d and exceeding pre-drill estimates
o net production for the combined Serica and Tailwind portfolios averaged 46,800 boe/d during Q1 2023
o preparations during 2023 for a four-well Triton area drilling campaign in 2024 starting with the Gannet GE05 well
o integration plans on track, including sharing best practices, prioritising work programmes and high grading investment opportunities.
· Combined Group production guidance range for 2023 maintained at 40,000 - 47,000 boe/d on a full year proforma basis:
o combined operating costs to remain below $20 per boe
o Price hedging under borrowing facility for oil production acquired from Tailwind
§ 2023 from 23 March, approx. 11,000 bbl/d @ average $58/bbl
§ 2024 approx. 4,000 bbl/d @ average $74/bbl
· A second light Well Intervention Vessel campaign to enhance production on BKR wells planned for the summer with a further campaign expected in 2024.
· Subject to shareholder approval at the AGM, a final 2022 dividend of 14p per share will be payable on 27 July 2023 to shareholders registered on 30 June 2023 with an ex-dividend date of 29 June 2023.
· Completion of the acquisition of Tailwind puts the Company in a strong position to maintain and grow its dividend. Following the introduction of an interim dividend in 2022, future dividends will continue to be paid in two annual instalments
Operating profit of £476.2 million (2021: £246.1 million) after:
o realised losses of £45.4 million on 2022 gas price hedging (2021: £56.6 million)
o unrealised gains of £20.9 million on hedge valuations (2021: losses £74.6 million)
o E&E asset write-off of £82.7 million related to North Eigg exploration well.
· Profit after tax of £177.8 million (2021: £79.3 million) after current tax charges of £277.7 million (2021: £15.8 million) and non-cash deferred tax provisions of £32.7 million (2021: £40.0 million).
· Net cash inflow from operating activities of £560.1 million (2021: £157.6 million) including:
o £91.0 million net release of cash security held by gas price hedge counterparties (2021: net payments lodged £113.6 million)
o £143.5 million cash taxes paid in 2022 (2021: nil). Further £140 million of 2022 tax charges paid in early 2023.
· Closing cash at 31 December 2022 of £432.5 million (2021: £103.0 million) plus a further £24.3 million of cash security lodged with gas price hedge counterparties (2021: £115.4 million). Remaining cash hedge security fully released post year end. Closing cash at 31 December 2022 is after:
o £97.1 million exploration and development spend (2021: £52.2 million)
o £93.9 million final BKR cash flow related payments (2021: £81.3 million)
o £46.3 million dividends paid (2021: £9.4 million).
2022 Summary
· Profits increased at all levels with a 93% increase in operating profit and a 124% increase in profit after tax, boosted by the end of BKR net cash flow sharing, increased production volumes and higher commodity prices.
· Average net production of 26,200 boe per day compared to 22,200 boe per day for 2021, an 18% increase.
· Serica 2P reserves increased to 74.9 million boe effective 1 January 2023 (1 January 2022: 62.2 million boe) with Group 2022 production replaced more than two-fold.
· Acquisition of Tailwind Energy Investments Limited announced on 20 December 2022 and completed post year-end on 23 March 2023.
· Final 2022 dividend of 14p per share recommended, bringing 2022 full year total to 22p per share1 compared to 9p per share for 2021
i'm delighted that we can recommend an increased final dividend of 14p per share. The continued strength of the Company underpins the intention to maintain or increase the dividend in future years
"I'm delighted that we can recommend an increased final dividend of 14p per share. The continued strength of the Company underpins the intention to maintain or increase the dividend in future years."
Plenty of mileage left in you upomega?! A few years of 25p (and growing) divi per year wouldn’t be a bad start. Until the naughty boys at M steal us and take it private for ten bob per share somewhere down the line ;-)
The motion picture begins NormaStits,but unlike you time may not be on my side.Hopefully though a hefty dividend will transpire.
Atb
Upomega, for you I break my vow of silence. I’ve held this for more than 10 years. If I’d wanted a 13x return I could have sold last year >£4. I didn’t. You could have done the same. I remain a holder and have added in the early £2 range this year. Tomorrow is just first glance NOT the whole movie…
Maverick7
It is more about being mis lead re the Tailwind deal and share price decemation. It is very easy for the company to say that anyone holding shares should have taken a profit, Not the point. Why was this better than the Kistos offer for existing shareholders?. It certainly has not benefited me.Hey hoe . As i and a number of other lth have intimated why did the BOD strongly recommend to reject the Kistos offer. Worse still they proceeded to placate UK HMG at this vile stage in our countries state of affairs. Corruption springs to mind IMHO. Hopefully i will be proved wrong tomorrow morning,Fingers crossed.
Fwiw i still hold nearly two thirds of my existing holding . Average 40p
What you on about upomega “ Excellent new investment for new investors, but what about the rest of us??. Where is our return.”
Didn’t you and the rest of us by sub 10p, we have all made a handsome profit and more, i hope you sold some all the way up to 450p!!!
And surely, if it’s an excellent investment for new investors, old investors will be rewarded more so?
This game is all about crystallising profits, no point crying about missed opportunities
Oh and bye the way that is for normastits and banburyboy . unless of course you are genuine investors then apologies are in order ????
infor. fwiw
if they lnmv have let down lth. i will personally come up to the city and hang their b..alls ou to dry together with the spiv financial adivisors that backed this.
tomorr0ow is the the key. alternativelly i tfink they should be sued, buts lets wait and see.
For the plainteiff. 4,20 offer per share now 2,30. I would say fraud dont ya think
As per the CEO in the past,and I quote the company welcomes new investors. So we should not take large share holders selling as a negative . Really??.
Anyway we should soon find out. Excellent new investment for new investors, but what about the rest of us??. Where is our return.
Well the market hasn't exactly got lathered up ahead of tomorrow's great reveal, we will see if Mitch can unstitch us poor shareholders by giving something of the third he has wiped off our stake holdings with a nice dividend announcement and buyback scheme plus some sort of transition project (oh sorry this isn't the Harbour page). It will be interesting to see the level of cash they ended up with year end, should have been ~£500m and how much they will include any Tailwind details.
Finger's crossed for tomorrow and hoping the BOD do not forget all lth.
Serica Energy: upgraded to ‘Buy’, target of 340p
The bank’s upgrade follows Serica’s acquisition of private company Tailwind and the subsequent increase in group 2023e production by 46% to 44.6kboe/d.
Jefferies analysts also noted a 3% year-on-year growth in group production into 2024, supported by a 4-well infill drilling program.
https://www.proactiveinvestors.co.uk/companies/news/1011896/harbour-ithaca-and-serica-energy-rated-buys-amongst-north-sea-oilers-1011896.html
https://twitter.com/surprised_trade/status/1646133223037059073
Not since the formation of OPEC+ back in 2016 had net bullish bets on Brent climbed by as much as they did last week.Money managers boosted their net bullish bets on Brent Crude by the second-largest amount on record following the surprise announcement from major OPEC+ producers that they would remove more than 1 million barrels per day (bpd) from the market between May and December.Speculators and traders added as many as 73,000 contracts to the net long position ? the difference between bullish and bearish bets ? in Brent Crude, the second-highest increase in such bets, per data from ICE Futures Europe cited by Bloomberg.
upomega
It would be amazing if the BOD blamed EPL for poor performance as they were the ones who wilfully took us into more EPL taxes knowing full well about the EPL instead of doing the sensible thing of investing outside the UK or distributing some or all of the cash to people who it belongs, the shareholders.
One danger here is that Serica will play down the results and make a huge provision for EPL writing off all profit. This may help the cause to get this levy reduced,but could be a negative on the share price. Inmho.
For me the most important part is the promised ramp of Tailwinds oil assets following work in Dec / Jan. For me that's a key unknown and risk in the deal.
Hopefully it's on track and the step up in Tailwind production will be maintained.