Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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That would be nice Newkotb. Maybe they have forgotten the fact that Serica is North Sea based and is technically nationalised by a war funding state inmo,and no one's elses
Think Simply Wall St have been sniffing something !!!
Would be nice to think they are on the ball rather than off their rocker, half that would do me !
aimo & dyor
Hope your right DennisThe Pennis.
Fwiw i still hold here , but not as many originally,but a quantity that effects me.
I think they're rushing to get as much done as possible before a Labour government. Then all North Sea investments will stop until Labour see the error of their ways and concede a u-turn. Just my theory.
Thanks Stevo12. Extremely informative. Lets hope that Serica gets the majority of the workovers completed before the next general election. Otherwise hopefully they will cancel the remainder of the workovers should Labour become the next government.
Upmega
The Labour proposal is that investment allowances will continue against core tax, but no tax allowances for capital expenditure against EPL. This would effectively result in HMG providing a tax charge reduction equal to approx 45% of capital expenditure (for companies without brought forward tax losses) as opposed to the current 91.4% allowance.
The net effect of the proposed labour policy is that the operator would fund 55% of capital costs, receive 22% of operating profit during production and fund 60% of Decom costs. I think there will be very few projects where the 22% of operating profits will be sufficient to cover upfront capital costs, interest expense on borrowings and decom costs and generate a return. It will result in tax rate that will likely exceed 100% of total FCF/ economic value over the field life for most projects.
Something I can't get my head around.
If the hmg removes the EPL incentive of repaying capital expenditure. Then surely any capital expenditure could still be written off against profits. So in effect we would be no worse off by continuing the capital expenditure programme in the future.
We may well be due some positive news before the end of the month:
- Bittern sidetrack commencement
- Keith Well's intervention commencement
- Erskine Compressor fixed
- Belinda development decision confirmed
- and importantly a new CEO chosen
A flow of information is always good news and just might resurrect our ailing sp. Good point Maverick and agree that its politicised and a major negative.
It’s (North Sea oil) being used a political weapon and the tories are running scared of labour scoring cheap electoral points. Reckon that after the election if the tories miraculously win they will come to their senses - we will see
"Falling investment in North Sea crude and natural gas extraction helped drag Britain's production sector into contraction in the three months to January 2024, Office for National Statistics data shows.
UK oil production is now at its weakest this century, falling two-fifths below 2019 levels in the second half of last year, amid reports firms are slashing investment in response to the UK's Energy Price Levy." (This is Money 4hrs ago)
Unfortunately politicians are deaf and very "DUMB"
The dispute encompasses around 50 offshore workers who provide heating, ventilation, and air conditioning services on offshore platforms operated by BP, TAQA, CNR, Repsol, Serica, and CNOOC. These workers will take three-day strike action over three months, including March 25 – 27, April 15 – 17, May 6 – 8, and May 27 – 29.
Battle for work-life balance continues, as workers gear up for strike action across multiple UK offshore platforms. This wave of strike action will hit several platforms operated by BP, TAQA, CNR, Repsol, Serica, and CNOOC.
3 weeks on and three weeks off all year and the poor peops have to do training on their weeks off - not fair they say!!
Here you go - Under Article 19(11) of the UK Market Abuse Regulation (UK MAR), the period of 30 calendar days before the announcement of an interim financial report or a year-end report that an issuer is obliged to make public according to the rules of the trading venue where the issuer's shares are admitted to trading or the law of the United Kingdom, during which a person discharging managerial responsibilities of an issuer is prohibited from conducting any transactions on its own account or for the account of a third party, directly or indirectly, relating to the shares or debt instruments of the issuer or to derivatives or other financial instruments linked to them
Surprised .. isnt it sixty days and not thirty days. if so we have another seven weeks to go before any possitive announcement,but in this current climate and the apathy of diversifying away from this basket case of country. Well what can lth and any investors expect???
It is often a decent signal as there are few people who like to lose money, so with a 30 day restriction on purcahses for bod memebers before any news is released to market it would not be unreasonable to expect something positive in the April trading update.............. David Latin, Non-Executive Chairman, purchased 20,462 ordinary shares at an aggregate price of 180.04p (£37k) following the CFO's 19000 share purchase earlier today (£34k), following David Latin (Chairman ) recent purchase of 117,255 shares @ 183.7p (£215k) & Mitch Flegg's purchase of 75000 at 189p (£141k).
The main issue here is. Which i hasten to add that Wokes will not say.
Tax and where it is ending up.
Inmv . It is going to fund a war for a country that is not part of Nato nor ever likely to be due to its corruption and then we have the chosen land that we are funding them to do mass slaughter ???
Oh forgot to add litttle britains land hotels now fully booked thanks to hmg and the wokes.
That’s the real issue, not the amount of tax, albeit ridiculously high but the never ending uncertainty....
Aimo and dyor
Sorry, I missed this accompanying article…
https://www.telegraph.co.uk/news/2024/03/12/rishi-sunak-new-gas-power-stations-blackout-risk-net-zero/
Sunak's planning to build more unabated gas power stations.
Could be good news for gas producers if they can work out how to make a profit under Labour’s proposed tax regime (and if Labour don’t immediately cancel his plans).
Not sure if this is supposed to be a new policy announcement from Sunak…
https://www.telegraph.co.uk/politics/2024/03/12/rishi-sunak-energy-security-gas-net-zero-north-sea/
Very vague as usual.
Not sustainable long term though. HBR should be ok, assuming the buyout concludes. Not sure how sustainable SQZ business model is with current / Labour tax rates
If they don't invest overseas, I think the only reasonable course of action would be to return all cash to shareholders and wind up the company. If Rachel Reeves is the next chancellor and she goes ahead with her idiotic plan to implement a "proper windfall tax" to "raise £7 billion" (😂), E&P businesses won't be sustainable in the UK.
The dividend is pointless as the share price has been decimated since they started paying a decent amount. I would rather see the funds invested in an overseas asset and then the company relist in the us. I'm sure the share price would reflect this in a positive way imo.
After the brief respite last week, it looks like normal service has resumed with the share price.
If this is still a healthy, profitable company, hopefully the BoD will be considering more juicy dividends to compensate shareholders for their substantial capital losses.
It all helps - with Hartshead now reviewing the economics of developing the Somerville and Anning discoveries in the NS southern sector.
Just perhaps it would make sense for all prospective developments pending and from the latest licencing round, be broadcast over the media. Certainly a clarion call from oversea's and multinational players would support our UK based O & G companies. I've watched Unions fight for Dockers, Miners, Steelworkers, Ship Builders, and many more - mayhap they have a voice against their lords and masters.
Mind blowing tax rate at HBR of 95%, however atleast they are returning significant amounts to shareholders with dividends and buy backs, from their end of year financials RNS:
§ Profit before tax of $0.6 billion (2022: $2.5 billion); profit after tax of $32 million (2022: $8 million) reflecting an effective tax rate of 95% (2022: 100%)
§ Free cash flow (post-tax, pre-distributions) of $1.0 billion (2022: $2.1 billion)
§ Returned $249[2] million through share buybacks in addition to the $200 million annual dividend, resulting in $1 billion of shareholder distributions since becoming a public company in April 2021