Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
Sek, yep, understand your point, but this tax is not applied to all businesses, so why can't a minority that is suffering punitively challenge the government? If the tax is based on the making of excessive profits, where are these profits? Why does this tax not allow for all tax losses, other businesses are allowed? I am sorry, sovereign or not, EPL is unfair and has disrupted the market and is damaging the UK economy. If it cannot be challenged, personally, I would de-list from the UK stock market and list elsewhere, still have to pay EPL but the UK Government would not benefit from other future tax revenue.
I hope they (NS O&G companies) start making noises about a legal challenge a.s.a.p. The companies should all get together (even through the trade association) and put some money in a pot for a legal challenge. Such a challenge may even help the sp if people believed it might be successful. Any successful challenge would have a massive positive impact on the sector whether from increased profits, reserve valuations and economic stability/environment perspectives.
ENQ in the low 15p and Brent up at $89.59, we should be having a decent bounce purely based on the Brent price, but nothing, plus volumes have been very low. I cannot understand why the analysts are not issuing or reiterating targets. It seems that ENQ and NS O&G have fallen off the radar. I just hope that ENQ's ridiculously low valuation represents a coiled spring that will eventually fire the sp upwards. I can't remember owning a share that has been so incredibly undervalued, particularly given the level of debt reduction - why does the sp not reflect the ENQ's net asset value and FCF?
Jan, I know this half million trade would normally be a UT and appreciate your responding. I was surprised that there should be such a large UT on such a low volume day, hence my wondering if it were a buyback trade. Thank you for putting me straight.
Topped up again, if Brent holds at the $86-88 range or higher, then the sp will surely rise into the next update, backed up by buybacks - I wonder if the late almost half million trade was the start of the buybacks. I assume ENQ will want to get a couple of purchases and then RNS to say they have started buybacks.
It appears the Arms Industry is about to have its own windfall moment, so I look forward to EPL being applied to any excessive profits!?!
Back to ENQ and EPL, when is the government going to announce the new EPL baseline figures?? Any increases should help a very little to underpin share prices of NS O&G's.
About time - a few more positive broker targets would be helpful and over due in my opinion.
Sp performance has been dismal considering Brent is well above $88.
Just a month to the next update and in the meantime the price of Brent, buybacks, positive broker targets should all play into a higher sp, even in the absence of any other positive news. Plus AGM at the end of May.
I have been averaging down since the EPL (35%) news and only see this depressed ENQ sp which is barely off the bottom as the last remaining buying opportunity at these levels. 33p today would be amazing but I think this target will be surpassed over a two year timescale.
Interesting article and I particularly liked this paragraph, I had not realised that the figures quoted for gas powered electricity had such a large proportion of tax included as a opposed to the subsidies in renewables.
"The offered price for large scale solar at £84/MWh is more than twice that quoted by Newkey-Burden in the National Grid sponsored article. In fact, the prices offered to all renewable technologies are more than twice those in the Generation Cost report. Third, the £114/MWh price quoted for gas includes an assumed £60/MWh in carbon taxes, meaning the real cost of gas fired electricity is only around £54/MWh. Finally, these levelised costs of energy estimates do not include any allowance for the cost of backing up intermittent renewables, nor the extra costs to expand the grid to bring power from remote offshore locations to the source of demand. Moreover, the costs for existing renewables are even higher than those offered in AR6. Contract for Difference (CfD) strike prices for the year ending March 2024 were £173/MWh for offshore wind, £109/MWh for onshore and £106/MWh for solar, as per the LCCC.
The first “myth” is confirmed shown to be true". Clean energy is too expensive!
Personally, I think a few people are using and or effectively creating these small swings to trade, I have to say when I saw the price yesterday at 17.46p going in the opposite direction to POO, I was tempted to trade a few, unfortunately, I was about to go into a meeting and the opportunity passed. Having said this, I would not want to out of ENQ when the next big news arrives or for the May update!
I was just looking at the trading volume over the last 29 trading days and it averaged 3.78m shares per day. So what?
If you now divide the number of shares the company has committed to purchasing in 2024 (£11m/17.06p), that equates to the company buying over 10% of all shares traded from the end of April to end of the year. Now I accept the maths here is an over generalisation and sp dependent, but which ever way you calculate it, the buybacks have to have an impact on share liquidity.
Take production, life of GE field and a punt at future Brent prices, cost per barrel and complete a net present value calculation. Then simply work out what might be attractive in terms of price to ENQ whilst leaving enough for any buyer to make a relatively risk free profit over and above the return of their capital.
Perhaps upwards/circa $200m for ENQ?
The trouble is you then have to factor EPL into the equation, so you really need a buyer with tax losses.
Friday had the highest volume of trades since 29th February and a level well above average trading days. Punters are starting to take notice and who would not with a steady rising trend - +36.7% since 12h March. I have certainly added, as I believe other long termers have been - a bit of a no brainer........ Some new names popping up on the BB suggests that we also have new comers on board for the ride. Personally, I believe the MCap and Sp does not represent the value of the company for all the reasons previously given and this week's presentation confirmed.
If no news from AB apart from the commencement of buybacks, the next important update is in about 45 days time and assuming POO holds or rises, it should be a good update. The question is - what will the share price be then? I reckon we could be in the 24.5-26p range, anyone got a view?
Looked at yesterdays presentation again which confirms to me that ENQ is a rare investor opportunity. In such a small number of concise slides, the presentation outlines not just outstanding progress in a difficult environment but also clear indicators on the way forward and strength of the future balance sheet.
Brent is over $90 and likely to stay $90+
FCF generation will increase with increased production in 2025 and reducing lease costs
Share buyback imminent, expanding to potentially include dividends @2025, substantial % shares long term holders
Finance headroom, debt reduction to potentially debt free 2025
Reduced costs (diesel) and emissions, plus Sullom Voe/infrustructure offset opportunities
$2,000+ tax losses, mitigation against EPL
Excellent management team performance, good investor communication, AB heavily invested
M&A possibilities and ENQ potential target
This is what I took away from the presentation, which confirms my views on the potential growth of the ENQ sp, it is a rare thing to see a company perform in this way in a hostile geopolitical and economic environment.
This is by far my biggest holding thanks to averaging down following the impact of EPL (I still cannot believe that HUNTY and SUNAK and the LABOUR PARTY are so short term MIOPICALLY STUPID!) - DYOR and if you are onboard enjoy the ride!
Jan - nice one - have to confess to buying more on news of buybacks starting this month, just trying to help reach the 60p party or 400% rise.
Thanks Krak, month earlier than I expected, sp doing nicely 16.36p currently. The confirmation of buybacks should peak interest in ENQ.
Clive,
We'll revise the title after the investor meeting this afternoon, hopefully everyone will run out of the meeting and call their brokers - "Buy, Buy, Buy!"
Dumbly, you first have to find someone so incensed and principled that they are prepared to dig into their deep pockets and fund a long legal action..........then you might get a challenge. No NS O&G company is going to damage their prospects by taking on such an action, especially if they are surviving, and if EPL is forcing them out of business, there will be no deep pockets to dip into.
Personally, to tax one industry more than any other is anti competition. To apply an additional tax on all profit is tantamount to State theft and backdoor nationalisation of profits. To apply tax on one segment of an industry is wrong. For Labour to support EPL whilst talking about a State energy company is anti-competitive. To tax NS O&G in the twilight of production and extraction after companies have taken massive risks and investments is morale wrong, especially when the industry has a long business cycle. Moving the goal posts in the form of EPL is fundamentally wrong. Applying a floor price below a realistic level with multiple caveats is shameful. To place EPL on small companies and or indebted companies when the banks require them to hedge, so they miss out on the majority of any windfall shows a lack of understanding and judgement. To apply a tax and a retrospective one at tat which immediately means that companies finance covenants are breeched if debt is not immediately paid down is wrong at best. To pander to the extreme groups to win voters is wrong. To mislead the public over true renewable costs and subsidies is a lying. To have a strategy that does not take into account energy infrastructure and storage. To grab tax revenue in the short term whilst sacrificing GDP, longer term tax revenues, quality jobs, accelerating production decline and abandonment, exporting CO2 to claim achieving net zero and energy security. To rush at net zero and import the majority of renewable equipment from foreign companies is stupid economics at a state level. Not understanding O&G is fundamentally part of the transition and beyond, you cannot turn it off at a prescribed date as there will be every sort of chaos in our society.
Sorry folks, that is a rant off the top of my head and if I had deep pockets and a lot pf patience I would be the person to take the government on, unfortunately I don't have the former unless ENQ goes to £10 and having fought the sour mix of corruption and incompetence before, I have chosen to be a hermit who meditates on when will there be a 60p party?!
With Gas, dealing with condensate so that the gas is ready to use may be an issue.
Forgot to mention, added today based on Brent hitting $91 again and Bullish sentiment suggesting $95-100 possibility this year, briefing to analysts, briefing to shareholders tomorrow, article in the press and realisation dawning on people that NS O&G is important to UK and EPL is killing the Golden Goose, whilst debt reducing apace and thanks to higher average Brent compared to last year, plus general broadcast from ENQ Management - more positive, ENQ is well positioned and there must be more deal news around the corner. Getting very excited about ENQ - DYOR.
I received an invitation to tomorrow's meeting but unfortunately cannot attend much to my frustration, please can anyone attending provide some feedback for the Board.