The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Looks like all sunak was just banging on about renewables and transition away from o&g so it’s not likely to change much. The o&g producers should just stop all new uk investment until the tax is lowered.
It might even end up back at $115. There is still a massive shortage
Agree that markets have gone mad Poo still over$100. EV 1x ebitda.
$1.2m ebitda $600m debt should be there or there abouts in 6 months imo - it wasn’t long ago that they were targeting 1.5x and that’s not high leverage - the refinance is key to everything
Looney from bp will be lobbying for a higher tax. Slumdog millionaire will probably be arguing that his personal fortune is now being taxed more - his personal wealth is worth more than most of the smaller e&p companies.
I mean to buy back 10% of the market cap will be just a month of cashflow at these prices.
My view is they are going full steam ahead for this green new deal reset and they are either I) going to go for another pandemic with lockdown, or ii) a war/national security lockdown or iii) they are just going to make it too expensive to travel with high prices. Basically they don’t want the masses driving or flying. Enq needs to get this dividend/buy back going even if small to start - I mean with the current market cap it’s not going to be much of an impact on the balance sheet.
I’ll still be hanging on for the 60p.
Maybe Rishi and the cabal are going to raise the tax to 95% of profits that’ll stop all production which is what they want.
You never know with this government they clearly want to stop the masses from travelling with their green policies. The biggest risk is another lockdown IMO that’s the only thing that can stop the oil price.
Energy rationing coming soon and uk government 65% tax policy stops new investment. It’s not a blunder it’s all planned and part of the coming reset.
One windfall levy is damaging but 3 would be a disaster.
They will have to change policy when the shortages get worse.
Boris is controlled part of the reset agenda and green new deal.
Harbour net assets are lower that enquest so not sure that’s the best valuation metric. Debt is the main reason for the low valuation imo and latest rsn stated historic $1.2bn rather than c$800m now.
Doesn’t look like Rishi is going for the windfall tax on the electricity producers after all. Greedy socialist government just going after oil and gas. nobody is going to invest in the NS with a 65% tax rate but I guess that’s what they want with their green new deal. Enquest should pay down the debt and return cash to shareholders there should be plenty of it even with the 25%
hTTps://www.nationalreview.com/corner/windfall-tax-blowback-shock/
Uk gov find out nobody investing in NS. Another u-turn maybe.
Oil back above $120 and sp continues to fall.
Current 1x ebitda so undervalued by about £1 sounds about right.
I think £3 is finally coming.