RE: Very interesting video by Mick Pavey16 May 2022 10:06
Alibro,
Thanks for link...
That was the exact point I made a few months ago in anticipation of our EoY results .... in that with all the talk of the dreaded windfall tax our accounts would have to be 'managed' ... that has imo proven to be exactly that. However, the problem is, come EoY results for 2022 combined with reduced 2023 hedging, the 'demand' from counterparties will have fallen significantly with cash previously lodged having been returned too .... upshot being our 2022 EoY accounts will be beyond exceptional, not to mention first year of 100% BKR too. If you think the calls for a WT have been excessive to-date, wait until April / May 2023 when all the O&G publish what will be viewed by public / Labour et al as grotesque. We also have the interim's in Sept which may raise a few eyebrows, once more drawing attention to us and industry in general.
So, what can SQZ do about it, well very little other than deploy capital for an acquisition or as Rishi wants, 'invest' .... if not, without a doubt be hit with a WT at some point in 2022/2023 imo. What form and how much is unknown, but pressure is and will continue to build politically and socially for the government to act. Or simply sell SQZ to an PE outfit reducing the chance of obtaining any WT from the new owners to probably zero.
On the point of a WT .... Why not use the cash generated from sale of Russian oligarchs yachts, homes and business (inc Chelsea FC ) to replace a WT ...Sure that would go down much better with Joe Public.
aimo & dyor
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