Member Info for chilting

The green alternatives for when the wind doesn't blow or the sun shine are still under development - that is where the green agenda is at the moment - the three main choices are Nuclear, Green Hydrogen and Carbon with capture.

Our Government is exploring all these options at the moment with the oil majors looking towards Carbon with capture as the best way forward. Green hydrogen is the hope of many new tech companies. Nuclear is expensive at the moment but maybe Rolls Royce have an answer to reduce costs dramatically with their prefabricated mini nuclear power stations.

The best thing about today is all the positivity that has been generated - should bode well for the future.

The old lady of UK retail has a spring in her step.

So the plan is to reduce the number of full line stores from 254 to c 180.
The long lease issue has been sidestepped.

"While long leases have historically constrained our ability to rotate, we plan to largely fund future closure costs through the disposal for redevelopment of freehold and long leasehold properties."

Not expecting much movement from the SP - one way or the other - target of 200p for January 2022 still stands - for those of us that invested last summer, all on track for a long term hold of 3-5 years plus.

M&S results slightly ahead of expectations.
Revenue from Ocado Retail £78.4m.
This from their report -
"Transition to M&S product on Ocado Retail completed successfully: Penetration of M&S lines on Ocado is consistently over 25% of the Ocado basket, outperforming Waitrose. The next stage is to grow capacity by c.50% in the next 18 months and to realise further potential from the joint venture with our partners Ocado Group."

So from an Ocado point of view all good news - note also 50% increased capacity in 18 months - that has increased 10% from the last figure that Ocado Group released.

About as expected - with actually a better than expected pre tax profit of £50.3 m as apposed to analyst expectations of £43m.

Debt also reduced - M&S.com up 53.9% - Ocado Retail well embedded with 25% of products in baskets M&S supplied.

Re underperforming Stores -
"Accelerated rotation of the full line store estate: The drag on performance of the legacy estate has been exacerbated by Covid bringing forward the decline of some locations but also creating opportunities for rotation. We are increasing the speed of change to create a group of well-invested full-line stores in c.180 prime and core markets. The costs of the rotation programme will be largely funded by the release of cash from the development of freehold and long leasehold sites."

monkey
I was simply responding to the mrc thread about the Shetland Islands Council Project Orion and the direct link to Enquest operated Sullom Voe - the Shetland authorities plan to use Sullom Voe as a hub for their project.

The plan also involves using the Magnus pipeline to return carbon from blue hydrogen production at Sullom Voe into storage at Magnus.

https://cld.bz/Hnu6h1w/20/

romaron is correct to point out additional costs for renewables but that is the case for all new tech - its only when the new becomes the normal that costs reduce - also the new tech has to be evaluated and tested, most of it will fall by the wayside, including the companies that produce it, but we are now getting closer to the transition away from carbon and the pace is accelerating considerably - its no longer an option to bury your head in the sand and hope it doesn't happen.

Good spot gkb - producing their eFuel in a very sunny location using large scale solar - the cheapest form of renewable energy - could be the answer to profitability.

Compared to pre-pandemic 2019 when Brent was at the same levels as it is today the SP is between 4p and 5p lower.
I come back to my previous point -

Although AB did a good job steering Enquest through Covid, the damage of low oil prices, closing small fields before they had been full exploited and not being able to get on and grow the company has taken a big toll on the company at a time when it should have been prospering with Kraken at peak production.

In a way Covid has unfortunately, turned the investment in Kraken from success to failure and just left the company with a nasty debt and little to show for its flagship project.

I think this explains why the SP is so low at the moment and even with Brent at current levels there seems little upside at the moment.

These may be unpleasant facts but they are reversible but Brent needs to continue to rise substantially, the bounce in the SP in those circumstances would be dramatic.

Very encouraging - just be patient and keep the faith.

It may sound silly at first sight but there is actually 150 times more Co2 in water than air and with companies willing to pay for carbon offsetting it could be a very lucrative business and rather cheaper than buying land and planting trees.

The point with Sullom Voe is that it is one of the few industrial sites on Shetland as well as being a deep water port, so the green revolution will come to Sullom Voe whatever, so Enquest will have to embrace it.

Another project that would work well at Sullom Voe would be Co2 removal from sea water - there are higher concentrations in water than the air, so remove it using green power, pipeline or ship the Co2 to storage, clean water goes back in the sea to absorb more Co2 - companies pay for the carbon offsetting. All using established tech.
https://www.miragenews.com/champagne-technology-to-capture-carbon-dioxide-565256/

I admit that my principal reason for owning equities is capital growth rather than dividend payments, so my views on dividend payments may be rather different to the average M&S investor and more akin to an Ocado investor who is prepared to wait for greatness before taking a dividend.

I think that the board will want the never the same again transition to be virtually complete before they start paying dividends again - in fact dividend payments might be in the plan somewhere.

Clearly until the business performance is up to scratch, it would be rather foolhardy to pay out profits to share holders - remember what Philip Green did to Arcadia.

I guess it won't be until the 2022-23 numbers are out before we see a dividend.

As can be seen in this report momentum is building in Government circles towards COP26 in November.

Tomorrow the following Group will meet.
"On Wednesday, the newly formed Net Zero Expert Group will meet for the first time. Chaired by the Business and Energy Secretary Kwasi Kwarteng, this group was a key commitment set out in the PM’s Ten Point Plan, and brings together an expert group as part of Task Force Net Zero to drive forward net zero targets, providing advice on tackling climate change and helping to develop new polices to support the development of the government’s Net Zero Strategy. This will be published ahead of the UN climate summit COP26 taking place in Glasgow this November."

Any momentum that pushes the UK to add more renewables brings the adoption of Green Hydrogen as an alternative energy source closer.
We are close to the tipping point, hopefully by 2025 we will start to see rewards.

Ok, bad idea.

Excellent - a good indication that customers are choosing the quality option offered by Ocado Retail.
As capacity grows we should see good organic growth supported by good advertising and word of mouth over the next few years.
I like the way that the Ocado Just for You advertising is promoting the extra choice available at Ocado Retail compared to competitors.

Its 13,900 bopd from day one with Brent at close to $70, so has to be worth looking at - if the price is right.

mrc
All the bad news is behind it now and expectations are adjusted - just simply look at it for the current production and FSPO - could be a bargain purchase.