The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Oil nearly at $90 and valuation here is like it’s still lockdown.
60p coming
Enquest need to get a move on with selling the Enquest Producer
Oil price yo-yoing up and down quite a bit recently.
Taxing the North Sea out of existence is going to make this a lot worse
https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments
It’s good if they’ve got the maintenance shut down done before the windfall tax comes off
The 75% tax basically the same policy as no new major fields and run down what’s existing.
The crazy bit of it is if you’re worried about co2 the emissions are more if you import it rather than produce it. the government should really be taxing uk production favourably vs importing it
Given the amount of debt reduction in the last year or so a small dividend is pretty much immaterial on the market cap.
If the oil price tanks , instead of putting in a floor they’ll probably just chuck another 5% on top and make it 80
At least the tax hasn’t gone up.
The epl floor price might result in a lower deferred tax charge but hard to tell how it will be interpreted by the accountants. Knowing this government if they do decide to put a floor price they’ll probably slap another 10% on the levy.
At least he didn’t raise it further he could have added another 10% to make it 85% and that would have got a cheer from media and politicians
All seems very strange given oil price and debt continues to decrease. 0.5 times must be close now.
Yep I’m expecting a big deferred tax charge
No chance
The 0.5x leverage target should be reached by half year. I’ll be interested to see what’s going on with working capital since sep-22 because I was expecting the debt to be a bit lower.
I thought the update was pretty good. Only quick payback projects until the tax is lowered, tax loss position still massive and shareholder returns not yet but coming soon. If all the operators cut back on capex the tax will soon be gone soon. Gov need to be taxing oil imports not domestic production.
The answer to a supply problem is not tax it more. That just makes it worse. The problem is powers that be want it that way so the cost of wind and solar doesn’t look so bad in comparison.
If it goes to $60 or lower I can’t see how they can justify any kind of windfall tax although they will probably just change the name of it to the global climate warming change tax