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"Dividend yield will be ~11%, which is higher than the industry average of 6.7%."
I think people as a whole are now not so stupid and can see through things a little more better now. The problem inmv is that people will just not vote due to politicians collective incompetence . For me I cannot stomach the funding of possible war crimes. .so for me I doubt I will vote for any of them as they all seem to stand for the same inmo .
SQZ needs to get out of the UK. Politicians of all parties are intent on confiscating O&G profits since they think it's easy money and most voters don't care. Sensible voters realise it's a slippery slope which could lead to some serious, life-changing injuries.
Final dividend of 14p per share (ex divi 27.06.24) increasing total dividend to 23p & started a £15m share buyback, in addition they are exploring opportunities outside UK (less tax)...with current and projected Oil and Gas prices looks like SQZ have their 'mojo' back 👍
Excellent news. North sea oil and gas companies should be taxed further . Lets say ninety five percent. I dont know about you , but why should i pay more for my gas bill and also we need to fund bae and rrr to protect all our lives. Hmmm.
We made ‘This is money’… yesterday..
https://www.thisismoney.co.uk/money/markets/article-13346543/Tory-windfall-tax-war-killing-North-Sea-oil-Serica-chief-blasts-Labour-plan.html
Concerns are showing up in the futures market re gas prices. The contracts for next winter are the most expensive on the curve. Like in Europe, most of the Asian LNG buying is done during the heating season in the northern hemisphere.
“If we look at the forward market for next winter, there is a risk premium,”
https://twitter.com/surprised_trade/status/1783539479178776630
Thanks Flexmw, in other words, for me, MF was CEO in name only, Mercuria held the strings and have been imo from the start, puppet-master to the puppet. I also would have thought "disagreement over shareholder returns" was probably the straw that broke the camels back. Stepped down, resign, clear case of, "I say tomato you say tomato", for me MF was on too good a thing and too young to 'step down' without have a new position lined up. Pressured to go, all in my opinion of course.
As of yesterday, the 'new' mgt now have no obstacles in their way, lets see where we go from here.
aimo & dyor
On MF’s departure, I emailed him at the time, he was adamant to say he’d stepped down & definitely not resigned, at the time I also read Alex Stahel’s tweet that his view - picked up via a phone call with MF that there was a disagreement over shareholder returns.. going on his history I very much doubt he would of sanctioned the Share buyback… maybe even conserved cash further & cut the final dividend…
I noted the new CFO was a little more hesitant regards the dividend going forward & keen to relay subject to the right conditions…
I think we all conjectured it was a reverse takeover !!!!!!!!!!!!!!!!
"I would conjecture out with the old, in with the new - having experienced it myself on my old companies takeover. Leadership team was completely gone withing 12 months..."
Except SQZ took over TW and all 3 of 'our' top team have bit the dust within 12 months, Just as we prophesied at the time !
Good question in Q&A's about Mercuria and its influence, we all know this is now a full on Trojan Horse for Mercuria, why else would the top guy from Mercuria take a place on our board. I still think within 18 months (Labour shenanigans aside) SQZ will be taken private, hopefully at a price that would justify those ~72% of voters that voted through the TW deal.
PS. At current rate of BB, the £15m allocated will be exhausted after 2 months.
aimo & dyor
Morning NewK, just perhaps the share buyback will give us a baseline from now going forward. With regard to Robbie Fleggs departure, I would conjecture out with the old, in with the new - having experienced it myself on my old companies takeover. Leadership team was completely gone withing 12 months.
To be fair we are a different animal today and I accept we don't ascend into the stratosphere like our days at 4-10p. I am happy enough holding, perhaps due to a very large dividend each year, but nevertheless I want us to turn into a growth share rather than an income share!! Like Ithaca, mass is important and our direction is now firmly on Norway - just perhaps a new CEO via a merger would give us an entry?? Won't harp on but I mentioned a couple of players before that have oversea's assets - that I hold by the way.
Dividend soon, now where shall I invest half - been ungrateful on the last one and bought BP
Steady way
Mommur,
Morning, off the the races indeed, RNS buyback transactions explain why we raced up circa ~12p/s early doors yesterday, guess same today. See the shares are being held in treasury.
Oh, btw, I wasn't convinced about the reason for Robbie Flegg 'departure' during Q&A yesterday without having another CEO lined up, were you, David appeared to struggle with that one a little ?
aimo & dyor
On the day of the races. Underwater at present, although Robbie Flegg's are in the money. Statement made I suppose.
Https://www.investormeetcompany.com/meetings/full-year-results-139
Very true Maverick7,
David also referred to Kistos as a 'Gas' company.
Not true. Current split is roughly 60% gas 40% oil.
Kistos are operators in Norway, The Netherlands and the UK. Gaining this status in Norway is particularly onerous.
Serica definitely feel threatened by AA, to the detriment of us as investors.
aimo
Interesting that they were quite dismissive about KIST and i thought i heard them say that they were a small company lol. Which i guess they are based on production verses SQZ, however, they are debt free, growing production and probably have more net cash than SQZ imho. Feels like there is still some bitterness from AA trying to takeover SQZ.
I heard Martin state that the TW tax losses available to us were £470m on acquisition, of which £395m are still available to us. He said to expect a lot more to be utilised in the following year.
Good news.
aimo dyor
Both David and Martin came over well, particularly David.
Meeting over .
Mercuria are very supportive and welcome shareholder who operaste globally and can provide help with M&A and provide opportunity if it suits SQZ business model and are in place to help grow SQZ
Question re dividend payment for future ? Bod respond with , clealry depends on cash flow, however, we are far from a oil/gas price that means divi is likley to be impacted.
Mich left as all agreed SQZ is on verge of growing bigger and likely beyond the UK and time to refresh the board ready for the new ventures etc
Meeting notes (wrote as the spoke, so forgive any spell errors)
''Performance so good against backdrop of lower gas prices and high tax, however, we can pay 14p final divi (4% increase) and share buy back, displays confidence in expected cash flow for 2024.
Tailwind brought in oil , essential for keeping cash generation as gas prices plumetted, Oil a great addition
Reserves grown
Production ytd 45000 - guidance 41000 -46000
Well drill programme 2024 expected to be short pay back times
Tax will be less as investment programme covered by offsets.
lower gas and oil prices for 2023
$19 dollar a barrell average cost and under the target of $20 achieved
Tax rate effective of 48% for year (afdter off sets etc)
Bank facilities allow growth etc
decommisioning cost less than peers and advantageous in current tax regime
Dividend cover and cash flow meet current levels
Capex expected to qualify for full tax relief in 2024
Expect to see more benefits of Tailwind tax losses through 2024
Windfall tax is not reflective of oil/gas prices as far from windfall prices
Investing in UK is not for now unless right opportunity arrives, looking outside UK for the right opportunity, will not rush, Norway in focus currently but will take time.
Business in good shape and aim to continue to offer good share holder returns ''
These guys know their business, better than many of us posters imo and sp does not reflect the sp metrics imo and clearly Oil has been a major benefit rather than remaining as just a gas company
Https://www.serica-energy.com/downloads/presentations/AR_2023_final.pdf