Member Info for DennisThePennis

Moving to the main market should stimulate a one-off SP uplift as funds buy SQZ but sustaining SP growth will require more than this.

Hopefully we’ll see a production increase when Triton restarts (soon), and longer term the company needs to continue to pursue organic growth and M&A. Fiscal and regulatory conditions might soften but I’m not holding my breath under this government. FCF should be strong as the company utilises tax losses for the next couple of years, and as long as production is maintained the dividend should be sustainable.

O&G is obviously an unloved sector at present, especially in the UK, but I believe SQZ is fairly well positioned compared to most.

I'd be amazed if this government removed or reduced the "windfall" tax. Apart from the misguided socialist belief that higher taxation means more revenue (which they desperately need as their policies destroy the economy), they would be hammered by the green lobby. Dale Vince and JSO are probably their only remaining supporters.

I'm not sure Miliband really cares that much about carbon emissions, but when it comes to his political career he is uncompromising. Look how he treated his brother. He'll pursue his ridiculous net zero targets relentlessly until his dying breath (or until he's sacked or promoted).

Miliband won't budge. He's a zealot's zealot.

Starmer needs to get rid of him.

Agreed Mommur, rewards for senior executives are getting out of kilter with rewards for shareholders and employees. I don't mind them receiving big bucks for exceptional performance but I wouldn't put Serica's leadership in this category (yet). I think they've been very handsomely rewarded for what they've delivered.

It's largely the same update they provide every time.

Looking for an accretive acquisition.

Planning to move to main market.

Promising organic growth.

Anticipating solid production and cashflow, once the latest obstacle is overcome.

Dividend is sustainable, subject to steady production.

Jam tomorrow.

Really hoping they get Triton production on stream again in June (and keep it producing). That should be their sole focus at present.

Starmer seems to be firmly in Miliband's camp. The level of ignorance on the left about energy security and sustainability is staggering.

I'm not convinced anything's going to change until Starmer goes or we get a new government. Can't come soon enough.

Offshore installations like Triton will normally have 3 OIMs to cover crew rotations.

It looks like one has stepped down, found a better job, retired, or been given his marching orders.

It's unusual for an OIM role to be advertised externally. Normally it's an internal promotion of someone who knows the facility and has worked on board in a management role for a few years. Maybe Dana don't have people of the right calibre/experience.

Sonofthebull, one of my neighbours has just sold their house in an Aberdeen suburb for less than they paid for it 15 years ago. Over the same period, houses in many parts of the UK have doubled in value.

Aberdeen is now the cheapest city in Britain for first time buyers.

https://www.theguardian.com/money/2025/feb/12/aberdeen-named-cheapest-city-for-single-homebuyers-in-great-britain

Quite a contrast to previous decades.

It’s a very generous dividend yield since the dividend has been maintained (and increased) as the share price has dropped about 70% from peak. Hopefully it has reached rock bottom and the only way is up.

Unlike some other UKCS operators, the future for Serica seems fairly bright, despite the ongoing “windfall” tax, as operational reliability improves, new wells come online, production increases, free cash flow increases, net cash grows, and new projects like Buchan Horst go ahead (subject to economics). There’s also the prospect of a main market listing, an accretive M&A deal, and possibly diversification overseas. Rejection of the ENQ deal has given me some confidence that the BoD won’t jump into bed with anyone.

As always, proof of the pudding will be in the eating.

Someone's underestimated production? There's a first time for everything.

There's too much uncertainty at present. The current government "consultations" need to conclude (quickly) then companies can decide whether to invest more in the UK or exit.

From the RNS: "EnQuest confirms that in light of current market volatility it has not been possible to reach an agreement on terms."

It's not just market volatility. It's chronic uncertainty and utter chaos caused by successive governments.

Looking forward to hearing good news on Triton soon.

It's unfortunate that the only way companies can operate profitably in the UK is by utilising tax losses, which is the main motivation for a Serica-EnQuest combination. It's unfortunate and totally absurd.

We haven't been in a windfall situation for quite some time. The conditions were defined to make sure the EPL would never be removed.

It's like all taxes. Often introduced as a temporary measure, sometimes for good reason, and in due course become permanent and increasingly punitive.

The ESIM was “designed” so it would never activate.

If, by some miracle, it did activate, it is not clear how it would work from that point onwards.

I'm not a big fan of Tony Blair but even he is telling Starmer to rethink his government's approach to net zero.

"Blair attacks Starmer’s net zero plans as ‘doomed to fail’"

https://www.telegraph.co.uk/politics/2025/04/29/tony-blair-starmer-net-zero-plans/

The sound of pennies dropping across the land is getting louder and louder every day.

I hope they're using the extra time to consider all scenarios to make sure a deal makes sense, especially during such a volatile period.

It's probably unlikely but if the EPL softens and tax allowances are reduced, a merger with Enquest night not be the best move.

If a deal is agreed, hopefully the business case will be robust for all eventualities.

Some people have known Ed Miliband is crank for some time, some people have reached that conclusion quite recently, and others still aren’t paying attention. But it’s just a matter of time.

The big problem with AI is that it tends to regurgitate popular opinion. It draws inferences by consuming and analysing data, and if most of that data is biased it will be biased too.

I agree that there's a lot of shady dealing by big oil, big pharma, etc., but there's also a lot of claptrap out there seeded by the green lobby, especially via channels used mainly by younger generations.

I.e., there’s almost no possibility the EPL will cease.