Member Info for chilting

On previous experience it takes a few hours or so for brokers to update customer accounts, so I wouldn't be concerned.

You should have noticed that your cash balance on your trading account/Issa reduced last week to cover the cost of the new shares.

Yes, new shares are in the pot and trading.

Marginal impact on SP - down slightly with market on very low volume.

The bottom line here is that if the hydrogen is classified as green, then it will be the cheapest green hydrogen to produce on the planet.

I guess with his hands on approach that AB likes to make the final call with hedging.

The problem is that he is an optimist - I think that you probably have to be a pessimist to be good at hedging.

I got it wrong Pelle - the actual average is $59 so its closer to $0.5 billion - still very significant.

Yes, that makes my point - around another $1.3b of revenue if Brent had been averaging $70 per barrel - based on guestimate, just looking at the chart for Brent.

Apart from the early problems with AK, Kraken has turned out to be a big success from an operational point of view and will hopefully continue to deliver, especially if the other two fields can be exploited with AK.

So, I don't think anyone can criticise AB for investing in Kraken - it wasn't his fault that the price of oil was so unfavourable when Kraken was in peak production.

It would be an interesting exercise for one of the number crunchers on this board to estimate how much revenue Kraken would have pulled in if Brent had averaged $70 over the last four years.

Thinking about it, it may well be better for everyone if Brent stays in the $70 - $80 range for the long term.

A spike towards $100 would simply fuel inflation, cut demand and cause Brent to dive - like it did in 2009 when it fell from $140 to $40 in about 6 months.

Presumably, the SP will open lower on Monday when trading begins to account for the dilution - that will be programmed in by the MM's simply using the current market cap.

Its then a case of how it reacts during the morning that matters.

Personally, I think the SP will rise strongly to easily cover the opening reduction and then move on into positive territory.

What does everyone else think?

e121
No, it seems that the fall back has actually strengthened the long term rise - in other words, the bull run took the stress test and came through it with flying colours - the close well above $70 WTI confirms that.

I am not sure that we will see a quick surge towards $80 on Brent - more likely a bit of consolidation around these levels - maybe $73-$78 in Q3 but the politicians, including Bidden will want it lower - Enquest remains a hold, not sure why gkb would want to sell now?

Its no different than any of the other LSE boards Valueplay - some are much worst!

I guess contributors just get a kick out of pushing negative views when they are online?

Sorry, but not convinced by this rebound - I think that there is more downside to come - tomorrow's close is key, WTI needs to hold $70.

The excellent trading update gave a very clear idea where the company is now but investors should be under no illusion of the long road ahead - this is reflected in the low market cap - comparisons with ITM are not valid, even though EQT is profitable.

Having said that EQT is an excellent long term investment but I wouldn't touch ITM with a barge pole.

.With these small companies the main consideration when investing is the management and I have every confidence in David Palumbo - the SP is oversold at present, so now is a good time to buy in or top up for a long term investment that is likely to reward with a very substantial capital gain.

I think that we will all look back on this period and say - why the bloody hell didn't I buy more shares, all the signs were there, stupid, stupid stupid!!!

Yes, there is certainly the business out there and the EQT tech it is as you say attracting a lot of interest into projects around the world, but that doesn't alter the fact that EQT need to invest in their own business to be able to exploit all these potential business leads.

In other words EQT need to scale up the business and make sure they have sufficient working capital to bring it to the next level, otherwise they will simply have to pass on lots of business opportunities.

EQT is still only a small company, its great that it's profitable, but it will take a lot of inward investment to propel it to the next level - the potential can only be unlocked if there is cash to fund it.

Moving up much better than anticipated - maybe some institutional buyers taking advantage of the low entry point?

The difference between the m-cap of EQT at £101m and ITM at £2,217m is rather bizarre.

The hydrogen bubble has certainly propelled ITM in a way that probably isn't sustainable - most of the valuation is sentiment and perceived potential, if that takes a blow the SP crashes - rather like PURP did in 2018.

So, comparisons between EQT and ITM are not valid in my view, but clearly EQT is undervalued at the moment.

I think it will be the collaboration with Wood that will ultimately help EQT the most in winning new contracts and enable the business to grow organically - at the moment its just a small player with great tech.

Since the Arab Oil Crisis in 1973 Oil Companies valuing oil companies has just been about company finances and the oil prices - fortunes have waned when the oil price fell but there have also been good times.

In general oil companies have been easy and lucrative to invest in, with gamble of what Brent will do next.

Now, we have a third factor - climate change fears - and this has really thrown a spanner in the works.

The problem now is that oil company valuations have been distorted by lack of investment by institutions and individuals who basically regard them in the same way as they do cigarette companies.

This third factor is rapidly becoming the most dominant factor and is now badly denting the market cap of oil companies - hence the reason that Enquest now fails to value up against Brent as it has in the past.