Member Info for NewKOTB

stuartmich,

"Words cannot convey just how angry I am the BOD. All they wanted was to count the money! No M&A activity....."

A B S O L U T E L Y ... without question.

GL,

"Question is “what is a Normal gas price?”...

That is what I asked in an earlier post ! ...

"Tax to be phased out when gas prices return to normal" .... what the 'ell is normal going to look like in the future ... we could be at 'normal' levels now of the next decade or more ... ffs an additional 25% tax on profits for an undetermined period of time .....

Well it looks like the sunset clause will kick in before 'normal' returns imo ..."also the legislation will include a sunset clause, effective at the end of December 2025..."

aimo

Watch rig rates go through the roof now ... pity we didn't book for additional drill in South Eigg .... hope we have option for follow-on drill.....

sasa,

Thanks ... I note that the gov also stated "The tax will take effect from today, 26 May 2022, and will be legislated for via a standalone Bill to be introduced shortly.... " so does that mean NO Windfall Tax for our 2021 earnings ... not that clear afaic.

https://www.gov.uk/government/publications/cost-of-living-support/energy-profits-levy-factsheet-26-may-2022

So we now have atm ~55% of Mcap in cash and equivalents with apparently £20m WINDFALL TAX to be paid on our post tax profits from 2021 of £80m .... Mcap down ~£120m today atm ....

SP reaction is utter madness.

aimo

So we now have atm ~55% of Mcap in cash and equivalents with apparently £20m WINDFALL TAX to be paid on our post tax profits from 2021 of .... Mcap down ~£120m today atm ....

SP reaction is utter madness.

aimo

I bet GS shorted before this kicked off too .... and will probably be buying at the bottom too before closing out.

Got 5k @ 279p .... foolish or measured .... I'm not sure myself atm.

Either massive selling or buying atm as in auction with telephone only .... think I can guess which one.

sasa,

Are you saying the WT will be based on our POST TAX profits, hence ~£20m to pay !!

If so then this fall is ridiculous.... down around £420m in MCAP since this tax was first muted and 'just' £120m today alone.

sasa,

"so a statement from Serica clarifying matters on this 'hit' would be most welcome...."

I would say a must ... market is treating SQZ like a loss making company now ffs.

aimo

Harbour energy up ... IOG up ....BP up ... Shell up ... do I need to go on !!!

This tax has single-handedly destroyed investor appetite on O&G which will result in reduced investment ... if they can not make money no one will be interested in them.... just can not believe how this has been handled by Rishi et al ... all in the name of appeasement and vote grabbing. I was looking forward to having SQZ in my portfolio for some years to come ... not only will we need to pay this excessive tax but also the dividend will be reduced to as these are paid out of profits .... lower profits lower dividend ... lower dividends less divi hunting investors .. less investors and you are in a down-wards spiral.

How to destroy UK PLC industry that employs 1000's

aimo .....

Tax to be phased out when gas prices return to normal .... what the 'ell is normal going to look like in the future ... we could be at 'normal' levels now of the next decade or more ... ffs an additional 25% tax on profits for an undetermined period of time ..... For sure ACW need to sell SQZ as it will be a long road back to 400p now .... really ****ed off atm.

aimo

ACW et al, sell SQZ for >400p/s ... do the deal .

Market reaction to cash heavy O&G company that is only interested in noses in troughs....

Time for our board to walk as we are no longer cash heavy .... thanks for your inaction ACW et al

aimo

Mr F,

With due respect, as you are new to this board you may of missed my continued calls for ACW et al to put our cash to work or return to SH. Overly indebted companies are not for me, however there is a time and place for debt esp when it's for an accretive acquisition ... My gripe is our board continue to extract 'free' shares out of our company on the back of a single deal that occurred 5 years ago. We are now in the position, front 'n' center of the crosshairs for any WT the gov may direct our way, this could have been avoided or at very least mitigated had ACW et al been more proactive on the acquisition trail rather than waiting and hoping for another BKR to come along. SQZ always quoted they didn't want to 'overpay' .... yet time and time again we have seen NS deals been done whilst we sat back, do you think these companies overpaid, their Boards clearly thought not. Our chicken has come home to roost, unfortunately I can not see anymore BKR golden eggs being laid, unless and this is a massive unless, N Eigg comes in. The importance of a success NE to SQZ is growing by the day, it shouldn't be that way.

aimo & dyor

surprised,

You are right in that the UK will be "equally keen for Oil and gas companies to plough on unhindered... " unfortunately the damaged has already been done afaic with SQZ. Yes the gov will open new 'backdoors' for O&G's to enable them to 'recoup' their WT but will they have the ability to do so after being drained of cash and forced to use debt which will be at the highest rate for decades, in a landscape where you have no idea what your future tax commitments will be... I think not, NS investment after latest round of M&A's this year will dry up and as 'green' energy comes back into focus. The WT focused on O&G is wrong in so many ways.... Lets see how much UK gov manage to extract from PE's and oversea registered companies .... probably next to nothing.
This O&G WT really gets my goat in so many ways, as you have probably deduced already.

aimo & dyor

Flabby,

This WT has gone way beyond frustrating now ... into the realms of being pathetic political point scoring for appeasement of the 'blinded' public. Labour and the press will have a field-day and feast on this for many more months when it emerges the "expected to be largely funded by a windfall tax on oil and gas firms that could raise £7bn.." will raise no where near that ... BP, Shell have not paid tax of years as they 'manage' their business to run as tax efficient as possible .... now you know why they retained vast majority of decomm liabilities for BKR and Erskine. Harbour and Enquest have been expanding rapidly over the last 1-2 years and will also probably not be impacted by any WT by ploughing cash and using debt to finance acquisitions ... whilst our Uncle Ebenezer Flegg and Ebenezer Walker sit and count their ( sorry OUR ) cash hoard .
As I have already mentioned, our board needs a shakeup .... sell the company or leave !! You can see what institutional investors think of SQZ by comparing our holders table today against that of only 12-18 months ago.

Time for change imo.

aimio & dyor

Mommur,

Agree ... If you think Fleggs LTIP 'rewards' are grotesque, whatever you do, don't work out ACW unless you have a defibrillator to-hand....

....time for change imo

aimo & dyor