Member Info for IAmNotAnAnalyst

I wondered also, that would be the simplest way! Anything relating to existing holding should start to get complicated fast.

Unfortunately they are correct:

"Net debt on 30 April 2024 of €148 million, following cash consideration paid for UK gas storage assets, ongoing Balder Future Project funding and UK tax payments made in Q1 2024."

My thoughts exactly Banbury. We're it not for the next debt being paid by serica it would be a decent deal. I can't fathom how they think it's going to wash as a good deal. All the graphs in the presentation say it all (similar to the table), marginal increases in EPS etc considering the dilution. Use of £300m of cash kills it completely.

I guess it goes to show what trouble you can make with only a 28.9% stake. Food for thought.

Yes it does feel like quite an expensive deal. I would have expected a decent discount with the North sea shenanigans and holding a bit of debt . Presumably the Hardys are on board with it...
They mention tax losses but not how much they're worth.
It all feels a bit risky buying a private company with no market valuation nor much information around, I'll have to read more about them.

Thanks - I had no idea. Presumably it will be a fairly quick drill if it's shallow (IIRC).

Last time I asked IR they said they didn't do well quarterly ops updates, they just update 'as and when required'. There is a drill and 2 FIDs due by the end of the year so I hope they will do an Ops/cashflow update before end of year.

I believe it is to reduce the capital value of the company such that dividends could be paid or buybacks conducted. It's seemingly a technicality.

No, it's the 27th

Serica do seem to be incredibly unlucky when it comes to drilling. Also, by my calender mid October + a 6 week delay only gets into December if you're a bit sloppy about timing!

Thanks for the response sasa.

If we didn't have so much cash I don't think AA could have made the offer as he'd be diluting shareholders (and himself) too significantly. SQZ should be able to offer something much more generous to KIST, but seemingly their heart isn't in it (judging by the offer).

Overall, I'll be very disappointed if this is the offer taken. I was holding out to watch that cash (and new cash) get paid out in increasing or special increments. On the upside AA is know to pay those special divis and a combined company sure would be throwing off the cash.

Interesting that despite giving an ops update there is no update on the cash position. I was thinking that was a good opportunity to emphasise how low the offer from KIST is (i.e. £xm cash + £xm per month...so read between the lines how much we're worth).

Overall though they really need to pay that cash to shareholders and quick, it's just a drag.

Well, it's arrived! I was hoping for some cash on balance sheet update but alas it isn't to be. The purchase was funded out of cash though and I can't remember if that was the care originally. Either way, onward and upward.

Thanks for the update - so what are we looking at (for any experienced drillers) 8-12 weeks to an RNS if all goes 'normally' and it flows?

I know the results date has been given as early October.

Thank you flex. I couldn't find the notice.
A very strange one to object to...

Can someone tell me what AGM resolution number 1 was? I can't for the life of my find the lost - very irritating that it's not particularly easy to find, should be pretty fundamental (but maybe I'm being dumb).

Neavo, the bonus share is just a mechanism to reduce the book value of the company such that dividends can be paid and share buybacks also (I think - as I'm no financial expert). It won't have any impact on your share holding as they'll be granted and then cancelled, and their value knocked off the capital value of the company.

I don't disagree with the logic for caution - they need to allocate well and only where value can be added. However, as time ticks it becomes more unsustainable a line to take, how bit is this potential acquisition?! Each month that possess the pressure increases. The buybacks will help too, once approved and considering how poisonous O&G is ESG-wise it's probably a good idea. Time will tell!

The greater the proportion of the MC which is cash, the harder it is for the active part of the business to make a good rate of return. If the cash cannot be put into service to generate a return then it is a drag on the business. There is more than enough cash to fund reasonably expected CAPEX.
As pessimisric as upomega is I fear he may be right on this one. The cover given is the search for M&A, which isn't really happening and even if it does happen could use debt (as it's a solid profit making company SQZ). Can't see the logic except to maintain the share price until that isn't as significant anymore. There should have been a special decided in my mind, if there's a special oil tax it'll be BP and Shell in the headlines not really SQZ.

Results due "in the coming weeks" according to the RNS today. Whatever that means. I take it to mean this month which does make me wonder why the schedule said uo to 14.