Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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This is why BP should/could be more vocal,but alas they are not.
I still believe that these idiots should be held accountable for their actions. Crime against our state I call it.inmho, dyor onmho
They're not actually losing money yet. Most O&G companies are still making some money (shock, horror!), at least until Labour get into government and introduce their profit confiscation scheme. At that point, I would expect all UKNS operators to down tools. I think it would be good to see how the country manages without domestic oil and gas production.
A basic & quick look at the chart of Uk natural gas (set to All) & you can see we’ve pretty much returned to the normal prices experienced prior to 2022.. just part of the cycle ….
https://tradingeconomics.com/commodity/uk-natural-gas
That would be a good way to work out MPs pay I reckon. Just work out the average for the last 20 years and make no adjustment for inflation. Would save taxpayers a fortune. Not as if they could complain if that's how they've worked out what level to set the windfall tax at. Could use the same formula for spending on public services as well.
Newkotb
Thanks and also many thanks for your informative posts over the years.
Hopefully everything will move forward this year once hmg and Ponce's in waiting loose their positions .,inmho and no one's else's
Upomega,
Benchmark was based on 20 year average apparently, guess those years were never indexed linked for inflation when they did the calculations either.
Absolute joke the floor criteria imo and the industry as you mentioned appears to be accepting things as they are with very little pushback .
Aimo & dyor
Why isn't the oil and gas industry (Especially British Petroleum) collectively asking HMG what they call normal prices and how they came up with their benchmark????
Going on how they valued their assets and how much of a bargain they were (according to all involved in the takeover) at $20 a barrel, I think they would need 2.8 billion for those 140 million barrels yes?
Maybe knock a bit off for a quick sale, let's say 2.5 billion? Be about 7 quid a share.
Forgot to add BP needs to stand up a bit hear inmho.
Corrections
are not saying more. They are acting in a way that is is crime againsnt our state that will reverablate in a few years time. Only for the next generation to pick up the pieces of what is left.
Hunt, Sunak,Starmer you are Sc...m Buckets inmho.Onmho,dyor, History will Judge you for your actions
Thease things need to address the general public as to their actions re north sea oil oil and gas, Not so much as their actions in destroying our soverignty. They afe acting in crime againsnt the stagte INMHO.
Why oh Why is not the larger corporations saying more. This WFT is ridiculous enless it is applied across the board of all who have benefited. inmv onmho no ones eles and pj man of course
Correction ..Sixty days uk. So on that assumption the results will not be until May.
Just googled and its thirty calender days before results are due if that is correct.So on that assumption the results will be after the seventh of April, Hopefully we will see continued activity over the next few days.
We could now do with another update between today’s production news & the upcoming results to keep some momentum going.. hopefully they RNS Erskine back up & in production with some figures … when the time comes…
The directors buying are most welcome inmv, but surely they should be in a closed period pending the final results next month. Maybe someone could answer that.
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 purcase of 75000 at 189p (£141k)....The BOD are buying.
https://twitter.com/surprised_trade/status/1765801930217902485
Compooter same with me. I had to be revived with smelling salts today when I looked at the share price.
When was the last time this happened? Must be sometime back in 2022 perhaps?
Same pattern with the UT trade & the paired volume trades.. largest of the recent UT trades to date…
07-Mar-24 16:35:05 183.20 1,044,080 Buy* 2m UT
07-Mar-24 16:47:01 181.092 27,205 Unknown* 49.27k O
07-Mar-24 16:47:01 181.092 27,205 Unknown* 49.27k O
Chairman David Latin increases his holding :
20463 @ 180.04p
Now holding - 182717
Interesting…. Mitch to follow??
Windfall tax extension ‘surprising choice’ for UK Govt – Wood Mackenzie
Analyst firm Wood Mackenzie has highlighted pitfalls in the UK Government’s plan to extend the windfall tax by another year.
Graham Kellas, SVP for Global Fiscal Research said it was a “surprising choice” as it won’t generate any income for the government for at least four years.
“And a tax that is now expected to have a seven-year lifespan under stable prices does not abide by most definitions of a ‘windfall’ tax,” he added.
The Chancellor unveiled the extension, bringing the Energy Profits Levy (EPL) “sunset” to 2029, during Wednesday’s Spring Budget, which he said would generate an extra £1.5bn for Treasury coffers.
Wood Mackenzie has separately modelled that as much as £4.1bn of cash flow from companies could be transferred to the UK Government by the measure.
The firm said it is dependent on assumptions about future oil and gas prices and production and it is not possible to reconcile their estimates with that of government without knowing what has been assumed in their models.
Wood Mac assumes fairly stable prices and production in 2027-28.
Risk of early decommissioning
Mr Kellas added that, by retaining the current allowance and tax rates, the government is assuming that the extension will not change investment plans.
The industry has warned that investment is at risk due to the ongoing fiscal turbulence.
“Taken on its own – the extension of the EPL is unlikely to impact investment decisions,” Kellas said. “However, the cumulative fiscal instability has really unsettled North Sea investors. And, in an election year, the opposition Labour party’s tax plan has added significantly to the fiscal uncertainty”.
Steven Wilson, senior associate at Vinson and Elkins in London, warned that companies may move to early decommissioning of assets in response to the EPL extension.
“While the Chancellor plans to raise £1.5 billion by extending the levy to 2029, there is a risk that some oil and gas fields may be decommissioned and abandoned earlier than scheduled, with the UK Government exposed to the tax relief for oil and gas companies’ decommissioning costs.”
He added: “Investors in the UK inevitably seek fiscal certainty – this further moving of the goal posts is unlikely to attract investment to the country’s oil and gas sector in the face of warnings from industry that prolonging the levy risks deterring investors from entering the North Sea basin and postponing new development.
“The health of the UK’s offshore supply chain is critical for the emergence of “North Sea 2”, as the UK seeks to grow the offshore wind sector and support the development of new CCUS and hydrogen industries.”
https://www.energyvoice.com/oilandgas/north-sea/549600/windfall-tax-wood-mackenzie/
NewKOTB, I understand your logic, but I think that we are far too close to the election for HBR to take a gamble on whether or not Labour will do as they predict or not. It's a gamble that they don't need to take. Also any package of NS assets at the moment is not overly enticing. Time will tell and no doubt many surprises in the meantime,
Rellim,
HBR could easily make SQZ an offer and by utilising our corp tax losses alone would make good business sense given combined production HBR profit before and after tax could look totally different.
“Profit before tax reduced to $600 million, from $2.5 billion, and after-tax adjustments the company reported a $32 million profit..” for HBR
Should Labour not carry out their threat to close the “loophole” HBR could then package all NS assets circa ~200kboepd for a tidy sum and fully exit UK. But as you rightly stated, HBR may well have enough to be going on with atm.
aimo & door
Atb
ENERGY VOICE 07/03/2024
‘Not windfall conditions’: Serica boss hits out at EPL tax extension
Serica Energy CEO Mitch Flegg has criticised the Chancellor’s decision to extend the windfall tax on North Sea producers.
In a trading update, he said current oil and gas prices “do not represent windfall conditions” and the effect will be greater imports, leaving the UK less resilient.
Chancellor Jeremy Hunt unveiled a year-long extension to the windfall tax, known as the Energy Profits Levy (EPL), during Wednesday’s Spring Budget, bringing the “sunset” to 2029.
Investment incentives remain, meaning it “could have been worse” as one source told EV, however the fourth tax change in two years now makes it “impossible” to plan investment according to trade body OEUK.
Mr Flegg of Serica Energy said: “It would be remiss not to express considerable disappointment with the extension of the EPL announced in the Budget yesterday.
“Current oil and gas prices do not represent windfall conditions for UK producers and increasing the tax burden on domestic oil and gas production again will be damaging for UK jobs and the economy.
“The achievements delivered by Serica have added to domestic sources of energy. The kind of approach exhibited in the Budget will lead to more imports and reduce the ability of our industry to enhance the UK’s resilience to potential energy shocks in the future.”
Boost to reserves
Serica Energy’s (LON: SQZ) trading update highlighted a 10 million boost annual to reserves as of 31 December to 140m barrels of oil equivalent.
That follows Serica’s recent acquisition of Tailwind Energy.
Mr Flegg said nearly all of the reserves additions are from fields which are already producing, limiting its incremental emissions.
“Production in the early part of 2024 has been encouraging and we look forward to the future impact of executing our investment programme this year. We are on track to commence the planned well intervention and drilling activities on the Bruce and Triton assets during the coming month,” he added.
https://www.energyvoice.com/oilandgas/north-sea/549550/serica-energy-windfall-tax/
I was under the impression that not only had the horse bolted, but some b*gger had half-inched the door too.
Not complaining mind, I'm b*lls deep in this mire
Jumping Jehosephat, what's going on?
Since when do we do share price increases? This has taken me quite by surprise, and will need to go lie down in a darkened room, and perhaps a strong cup of sweet tea