Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
As well as all time highs also bumping around underneath the very top of the current trend line at the moment too (according to MarketScreener chart I'm looking at). Looks like an interesting setup either way.
Government forced to step down on gas boiler install tax, the heat pumps are not working in many cases, cost many multiples of the prices for a full install for conversion and not suitable for vast majority of exiting housing stock without ridiculous secondary work (if at all), besides there isn't the electrical energy infrastructure (either generation or distribution) to even support a mass rollout. In regards technicals completely changes the medium and longer term financials as the penny drops there is going to be no sudden switchover to electric only, penny dropping with EV's as well, many chasing the benefit and kind tax breaks don't want them a second time around, regardless of the savings.
Meanwhile Germany announcing gas power plant expansion deal this week, a realisation that without an energy supply they won't have a manufacturing sector left.
Bankboy,
There has been some variability in buy backs, largely the same amount per day but some others half the rate and the odd late notification the day after.
Rather than concentrate on the weeds though it is possible to fundamental misunderstand the situation here. If you have an engineering background and not finance it is patently obvious that any shift to green energy supply has already failed on its promises, prices are higher not lower and no amount of political blathering is going to fundamentally make a jot of difference in the ability of the grid and electrical sources to be uprooted and turned on its head in a matter of years. There isn't the money, there isn't the infrastructure, there isn't the supply of materials / components and there aren't the skilled bodies to do the work for anything other than a multi-decade switch.
No energy, no country, Germany is going to learn a lesson or two about about that and also what happens if you try and cripple your food supply - mass main artery road blocks in progress.
As for shorting having looked at the rest of the FTSE100 plenty of high / overvalued stocks there in sectors that are already faltering - housing, retail, and others and failure in those will expose the banks. The public have already had a year penny pinching as much as they can on energy but shivering in your darkened house under a heated blanket nothing but a short term stop gap, if it comes to it slashing expenditure elsewhere will be far more amenable to improving day to day life.
This is not a situation brought about by the energy companies themselves but one almost entirely via a compromised rabble of politicians. If those energy companies don't survive / thrive over the next dacade or so the country will go down with them, simple as that.
How do you compare the situation here and Centrica and make any reasonable comparative value statement?
Octopus FY 2021/22
Revenue £4.2Bn
Operating Loss £141m (would be near breakeven if not for absorbing wholesale costs)
Just raised £625m
Valuation just raised to £6.2Bn (according to Bloomberg).
Tep, Market Screener are showing analysts' expectations tracking back up again for '23, turnover down from the estimates that spiked over the summer but still beginning to go up again, currently sitting at around £30Bn, EPS nearly 30p and dividend 4p for '23.
A lot of factors in the mix, on the positive side Rough storage double the capacity compared to last year, wholesale price spike last year way over current wholesale prices and the consumer price cap is being raised again in January. Working on the basis that if the wholesale price spike last year did not trash the finances then there is considerable resilience in their supply strategies.
The big picture is far more important. This company was priced down to basically be gone pretty much as it exists today within a few years thanks to the fanciful notion of a green energy transition. Heating requires huge amounts of reliable energy. The penny is dropping that wind and solar are not going to do it and never were (ask any half knowledgeable engineer not tied to the Net Zero boondoggle and they will tell you the same. It will take decades and money to be made all along the way.