Member Info for chilting

Invested here for the first time today - the company portfolio looks fantastic and is certainly worth observing as it develops - they have obviously had a bad year with Covid but this should be a good long term investment as Covid recedes.

Their results and details of a proposed financial restructuring due to complete in June are out today, average production was 13,900 bopd in the financial year to 31st December 2020.
It would seem likely that after the restructuring the next step will be a takeover - maybe one for Enquest???

Yes, most of the contributors here seem to have topped up over the last few weeks or so - we are now ready for some action

bamfman
Top slicing may be your best option - its always great if you can get the value your original investment out and just leave profit.

Tech companies of all sorts are still in the doldrums at the moment - its just the way the market goes - even FTSE100 frontrunners Ocado are showing year lows.
The market has inflation phobia at the moment - it will pass.
Good time to top up or buy in - over sold bargains for a change.

Here it is.
https://www.youtube.com/watch?v=DwKMuUtCJTE

boo
Its just the profit figure that is the unknown, as long as that matches expectations we will be OK but with all the extra Covid costs that cannot be guaranteed - so maybe best to keep our fingers crossed.

Not sure if this is new?

" SeaCURE marine mediated anthropogenic carbon removal (Sea Carbon Unlocking and Removal)
Led by the University of Exeter together with the Plymouth Marine Laboratory, Brunel University London and TP Group.

Direct removal of carbon dioxide (CO2) from air is hampered by its very low concentration. The concentration of CO2 in seawater is however approximately 150 times higher. SeaCURE technology will process seawater to temporarily make it more acidic, which helps to get the carbon dioxide to ‘bubble out’. The technology will then trap that CO2 and concentrate it to form a near-pure stream of gas to be compressed and stored. The carbon dioxide-depleted water will then be released back to the ocean, where it will take up carbon dioxide from the air. Combining, optimising, and enhancing existing technology, this project will design a pilot plant and a pathway to deliver carbon dioxide removal at the megatonne scale, offering a key solution to perhaps the planets most pressing problem."

https://www.gov.uk/government/publications/direct-air-capture-and-other-greenhouse-gas-removal-technologies-competition/projects-selected-for-phase-1-of-the-direct-air-capture-and-greenhouse-gas-removal-programme

https://www.gov.uk/government/news/166-million-cash-injection-for-green-technology-and-60000-uk-jobs

Aloj
CAPEX is high but study the generation costs, it all makes sense then.
The graphic in this report.
https://www.windpowermonthly.com/article/1697203/windeconomics-solar-pv-narrowly-beats-wind-costs-uk

SmokinAces
Still invested but trying to work out logically why the SP is so low with Brent close to $70 and what it will take to change the situation.

The online offering, M&S.com, is really motoring now - Next were way ahead - but M&S are catching up fast!

The benefits of having physical stores alongside a strong online offering have been fully exploited by Next for many years - now M&S are catching up and will also reap those benefits at the expense not just of Next but the likes of ASOS and Boohoo as well.

L3
You make a good point about declining assets.

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.

The big gamble for Enquest shareholders now and for new investors is that if Brent continues to rise, Enquest will have the chance to reduce debt substantially and that will lift the SP quite dramatically from these levels.

However, as a long term investment Enquest is probably a non starter, especially as change builds in the energy market, unless off course AB can pull the fat from the fire.

That has made me feel rather more optimistic.
Good luck everyone.

It won't just be next years forecast's that matter - more important will probably be the profit salvaged from 2020-21 - hopefully it will be in excess of £50 million, or at least £40 million, or the SP could rapidly sink and stagnate.

m_wall
That would certainly appear to be the case on first impressions but its not actually correct .

Although capital costs are significantly higher for new renewables technology, including electrolysers, the actual costs of generating power are significantly less and reducing all the time, especially for offshore wind in the UK. Also there is no lack of investment flowing into the sector, both public and private.

In the run up to 2030 power from renewables will become much cheaper to generate and more abundant, this will make green hydrogen production affordable. At the same time power produced from gas and other carbon fuel will become more expensive as legislation pushes more obligations onto the producers to become carbon neutral.

Also nuclear will become more affordable as a back up for renewables, when the wind doesn't blow, so we are beginning to see a clear affordable way forward for carbon free power generation in the UK.

Both graphics in this report give insight.
https://www.windpowermonthly.com/article/1697203/windeconomics-solar-pv-narrowly-beats-wind-costs-uk

More info.
https://www.gov.uk/government/publications/north-sea-transition-deal/north-sea-transition-deal-accessible-webpage

Yes, concentrate on Enquest and the damage being done to the oil industry by the erosion of its market by renewables.

Sure, we have a squeeze at the moment, due to lack of investment in oil, but that won't last and eventually the OPEC+ countries will be able to supply the world with all its demand for oil at a lot lower cost base than the North Sea.

So put your head in the sand and say it won't happen for another 15 years but look at how quickly the coal industry fell apart in the 1970's.

CAPEX is a huge expense with renewables, that's why they are taking so long to get up and running, but in the next few years the benefits of much cheaper generation costs will be a game changer. Public and private money is flooding into this sector and there is big profits to be made for all, even if the consumer does pay more.

Meanwhile oil companies will be expected to become carbon neutral and that will probably be the final nail in their coffin as costs soar - that is how Governments will achieve their climate change commitments by squeezing oil companies to become carbon neutral to the point that they cannot compete against renewables.

The rather uninspiring performance of the SP over the last month seems to be a result of lower than average volume.
I think that now Premier Inn is open and with media attention on summer holidays that this will change and the SP will respond positively.
The last remaining short above 0.5% reduced last Thursday to 0.49%.
Bookings seem to be good and as long as there are not lots of cancellations, revenue should be good this summer.
Broker ratings are generally positive.
I think we can expect the SP to quickly recover towards 3500.
But this is a long term purchase, with the promise of good capital growth and dividends over the next five years as the UK business takes advantage of a weak UK Hotel sector after Covid and the German business grows dynamically.

mrc
Very true - institutional investors are falling over themselves to invest in green energy companies with fund raising heavily oversubscribed.

As romaron points out its very expensive to build up renewable power but the actual generation costs per MWH are substantially lower and are reducing all the time as economies of scale build, especially for offshore wind.
Although modern CCTG gas fired power stations cost less to build, generation costs are set to rise substantially and are set to exceed even the cost of nuclear power.
So if Governments can stomach the extra capital costs of renewables and add the massive cost of nuclear as a back up for when the wind doesn't blow, then there is a way forward - but then maybe we have to, to combat climate change?

https://www.windpowermonthly.com/article/1697203/windeconomics-solar-pv-narrowly-beats-wind-costs-uk