The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
What's a Waldorf, anyway?
A walnut that's gone off?
Theshipscook1,
Yes, good point, and as I understand it we can claim around 73% back in year one.
In the ordinary tax base (22%), the costs must be capitalised and depreciated linearly over 6 years.
In the special tax base (56%), the costs are deductible immediately in the year they are incurred.
Example:
Investment in an offshore operating asset in Year 1 is 100.
In the ordinary tax base (22%), 100 must be capitalised and depreciated linearly over 6 years. The depreciation in Year 1 is 100 / 6 = 16.7, i.e., a deduction of 16.7. This results in a tax amount in Year 1 of -16.7 * 22% = -3.7.
In the special tax base (56%), the entire amount of 100 can be deducted directly. The special tax base will therefore initially be -100. However, we must deduct the tax amount from the ordinary tax base of -3.7 from the -100. The special tax base will thus be -100 – (-3.7) = -96.3. To calculate the special tax amount, we must use the technical special tax rate of 71.8%. The special tax will thus be -96.3 * 71.8% = -69.3.
Hence, total tax on the investment of 100 in the offshore operating asset in Year 1 is -3.7 + (-69.3) = -73, i.e., a tax deduction of 73.
In Years 2 – 6, the linear depreciation continues in the ordinary tax base. For each of these years, the tax on the investment of 100 in Year 1 is thus -3.7 in the ordinary tax base. At the same time, this tax is treated as "income" in the calculation of special tax, as the amount must be deducted in the special tax base. The special tax will thus be 3.7 * 71.8 = 2.7 in each of the years. Total tax per year will therefore be -3.7 + 2.7 = -1.
Looking at the entire period Year 1 – Year 6 as a whole, the total nominal tax for the investment of 100 in Year 1 is the sum of -73 in Year 1 and -1 for each of Years 2 – 6 (5 years), i.e., -73 + (-5) = -78, resulting in a total deduction of 78 over the period.
Var Energi released an update yesterday stating their capex estimate has increased by $340m.
That means ours has increased by around $38m or £30.6m
"The Balder X targeted start-up is maintained in Q3 2024. To reflect a tighter supplier market, mitigate schedule risk and to improve construction productivity the capex estimate has increased by approximately USD 340 million (~NOK 3.6 billion²) net pre-tax to Vår Energi."
On a more positive note Var are committed to extending the life of Balder X beyond 2045.
"We aim to extend the Balder area production beyond 2045 with the upgraded Jotun FPSO as a host for potential new tie-ins such as the King and Prince fields discovered in 2021, and future discoveries and tie-ins."
https://varenergi.no/news/var-energi-project-portfolio-and-operational-update/
Short term pain for long term gain.
aimo dyor etc
Trendz,
Only you can decide why.
I would suggest three reasons.
1. Past management record
2. Diversified portfolio (UK, Netherlands, Norway)
3. Rising production profile, significantly so from 2025.
aimo
I agree that the one off gain accounts for a large portion of the profits, but nonetheless, our results are still mightily impressive, particularly when viewed alongside Harbour and Ithaca's.
Without the gain on acquisition we are still looking at £159m pre tax profit.
After tax profit would have still been around £70m..... for six months trading.
The structure of the Tailwind acquisition was based around the Serica share price on the 19th Dec 2022 of 278p per share, which with the cash payment and minus debt gave us an equivalent purchase price of £367m.
When the deal completed on the 23rd of March the Serica share price was 218p, hence the 'new' purchase consideration was reduced to £303.7m.
The dip over the first six months of the year has been all too painful for us shareholders, but that dip has allowed another £63.3m to flow into the balance sheet.
And then there's the dividend yield.....
aimo dyor etc etc
Tuesday 19th Sept 1.30pm.
Register for the meeting and get your questions in.
https://www.investormeetcompany.com/serica-energy-plc/register-investor
I have asked what progress has been made with regards to entering another country.
Steve Edwards hinted strongly at the capital markets day that he was leaning towards Norway. It will be interesting to hear Mitch's answer.
More positives for momelotnib.
I would imagine that the review process in Japan will be little more than a box ticking exercise.
From Reuters "Morningstar analyst Damien Conover estimated the therapy would gain close to 50% of the second-line myelofibrosis market and projected annual peak sales of close to 500 million pounds ($627.45 million)."
I think the rise in SP is due to a few factors.
1. The pipeline of new drugs are delivering- positive news for Momelotnib, Nucala, Shingrix and Jemperli in the last couple of months.
2. The market participants are just returning to work and buying in volume once again. (Sell in May, stay away until St Leger day)
3. Appetite for big pharma M & A transactions looks to be back.
Anything under £14 was a give away.
OPEC response to the IEA peak fossil fuel statement.
https://www.opec.org/opec_web/en/press_room/7217.htm
“Such narratives only set the global energy system up to fail spectacularly. It would lead to energy chaos on a potentially unprecedented scale, with dire consequences for economies and billions of people across the world,” OPEC Secretary General Haitham al-Ghais said.
Both parties have used the UK O&G industry like the baby in a punch and judy show.
In the last 20 years, that tax rate has jumped around like a jack rabbit.
2002-2005 40%
2006-2010 50%
2011-2014 62%
2015 50%
2016-2022 40%
2022 - 75%
Politicians should know that 20 years is a relatively short length of time in the industry. To consider taking a prospect through exploration, development, production and decommissioning in this kind of environment is impossible.
The Norwegian fiscal regime is rock solid. If you make money you pay a lot of tax, but if you lose money they give you a cash rebate.
As the saying goes... it isn't rocket science.
Chevron staff is Aus were on strike today, and with no further talks planned it won't be the last.
https://www.reuters.com/business/energy/chevron-australia-lng-workers-begin-strike-friday-2023-09-07/
Idkmybffjill,
No.
It is GLA that produces a small amount of oil. They produced around 200 barrels per day in June which I have already included in the boepd figures for GLA.
£530m after tax profit for the year is £15m up on last year.
EPS up 2.6p on last year.
Final dividend down on last year but at 23.5p is still very respectable (final div to be paid on the 3rd of November to those on the register on the 29th of September)
If the market knocks us back below £4 I will be buying for the long term.
June total production (net to Kistos) came in at around 7779 barrels per day , down from just over 9000 barrels a day in May.
Production in the Netherlands was down around 60% (maintenance shutdown?) whilst at GLA it was up ~10% and up ~15% in Norway.
Norway (Oil) 10% net to Kistos = 2260 bbl/day.
GLA (Gas) 20% net to Kistos = 4404 boepd
Netherlands (Gas) 60% net to Kistos = 1115 boepd
aimo dyor etc etc
Unmanned, 60% lighter than a conventional platform and powered by a solar/wind hybrid power system.
“Timi demonstrates we are delivering more value with less emissions,” said Zoe Yujnovich, Shell’s Integrated Gas and Upstream Director
https://www.shell.com/media/news-and-media-releases/2023/shell-delivers-first-gas-from-the-timi-platform-in-malaysia.html
The healthy dividends have to be taken into account in any 'share price' discussion.
If you have held LGEN from 2021 and continue to hold through to the end of 2024 you will collect 79.52p in just four financial years (2021 18.45p, 2022 19.37p, 2023 20.34p, 2024 21.36p) as long as the company delivers on it's 2024 ambition.
Our operating profit came in at £941m, well above the £834m consensus.
Driven mainly by increased business in the bulk annuities. This was driven by the rise in interest rates that have improved the funding positions of defined benefit, or final salary, pension schemes, enabling employers to offload pension risk companies like us more cheaply.
Mixed results but I am adding too.
Telegram is anonymous too... you only need a phone number to set up an account I believe?
With telegram you can post anything you like, truth or fiction, and then delete it later. A rampers paradise...
With this forum you can't delete your posts which at least leads to some accountability.
But as I said, if it works for you good luck with it.
Well worth a watch. if you have an hour to spare.
From the content discussed I guess it was recorded in early June of this year but it is refreshing to hear a boss shoot from the hip... "The Conservatives have killed the UK North Sea and Labour have nailed down the lid on the coffin."
https://www.youtube.com/watch?v=VH8JWSA5HNk
Idkmybffjill,
From the content discussed I would guess it was recorded in early June of this year. Each to their own and all that but I would not be using an encrypted messaging app to gain investment insights...
dyor