Good or bad?15 Aug 2022 18:08
I have long viewed JSE as one of the under performers of my pf (the O&G tortoise).
There has been hardly any appreciation in share price for the whole of 2022, ranging from 90p to 108p. (You would have been better off selling in February).
Over 12 months from June 22 to June 23, we can look forward to $100M returned to share holders Money already earned, that wasn't distributed in the previous year.
We have had $6.25M back as a final div of 1.07 pence, naff all really - £107 if you invested £10,000, especially when the price has dropped over 10p on 2 occasions now!
Doing the math on the share buy backs, for $25M I think they could buy around 22M shares, which is less than 5% of the total. Its not going to make any difference. Assuming they spend the $25M on the buy back, which I doubt we will notice in any material way, that leaves $68.75M to be returned, from now until June 2023. Why cant they go the I3E route, and start paying monthly dividends? $68M / 10 months, could of been 1.07 pence per month returned to share holders. I expect they will extend the buy back, especially if oil drops a bit, and we wont notice another $25M being 'given back'.
Then a drawn out wait for a couple of pence some time in Q2 next year.
Just wondering if I am being unreasonable here? $100M returned sounds a lot, but I have not felt any benefit so far, and frankly dont expect to, from the current plan. (I know the buy back is in early sage but its not even 5%, it just wont make any difference). I would also point out that the $100m is already earned, and I think a much larger chunk should have been paid out at the beginning of the year, say $25M (~4.5p dividend.)
The returns from this investment for 2022 (capital ~1% and appreciation ~0% are woefull for a company making over 1/5 of their mcap in cash each year.