Member Info for romaron

I agree mrc. I was going to add that any new investment between today and 31 December 2022 (our YE) would likely qualify. Using the Seav figure the £75mio would turn into £15mio. It is almost as though AB had a hand in drafting it. This is a very good deal for us imo. I just wish I was better at reading and understanding the small print.

*HYN crept up a tad. No rush for the exit there.

Using Seav's figure a £300mio profit would incur tax of £195m. £120mio @ 40% and £75mio at 25%.
We won't be paying the 40% (£120mio in this case) for some time as it will be offset against tax credits. The plans for BBK now become much more attractive.

We have to accept facts and the times we live in. The country is suffering and we can afford to help. Higher oil prices will mitigate somewhat. My immediate reaction was too draconian by half but I initially read it wrong which wasn't helped by trolls and shorters. As J24 says the higher Brent will mitigate and it does appear that the Govt expect it to be higher for longer.

You're sounding desperate ammutitis. Stick to scratch cards.

Indy0105 and January24:

"To appropriately tax the extraordinary profits, companies will not be able to offset previous losses or decommissioning expenditure against profits subject to the levy."

I initially read this as our tax credits being shelved and not available for the 40% (until it runns out). It only applies to the Levy (the 25%). I can live with that.

Thanks again.

Within one linear centimeter of your lower colon there lives and works more bacteria (about 100 billion) than all humans who have ever been born. Yet many people continue to assert that it is we who are in charge of the world. -Neil deGrasse Tyson, astrophysicist and author (b. 5 Oct 1958)

One has escaped. Harmless unless swallowed.

Mind you, $200 plus oil seems closer.

Well the market was correct in valuing them at c. Zero.

"To appropriately tax the extraordinary profits, companies will not be able to offset previous losses or decommissioning expenditure against profits subject to the levy."

So are the losses set in aspic waiting for a time "In future years, if oil and gas prices return to historically more normal levels." If they are worthless it makes being a UK registered company even more pointless.

Are obviously going higher. Example from EIA "Tanker rates...in southeast Europe increased to $32.10/mt in April 2022, more than triple the $10.11/mt price in January 2022. [Rates] in northern Europe reached $41.38/mt...up from $7.50/mt."
Quite scary really so comforting to know the British Government will help out if we get into trouble now we know how it works. As wind energy piggy-backs off the existing grid I look forward to some money coming to O&G for a change from them. Looks like ship owners will be chipping in too.

I have understood what windfall means, haven't I?

Facts have to be faced. I'll be glad to be past it. The impact will be minimal financially but it does affect future negotiations between the industry and Government. Companies will have even less investor support now for cooperating with Government. I would not be against moving to another jurisdiction. Fairness would be ALL companies that did well in the past few years contributing but they pick on O&G who really have only had this year.

No one likes us, we don't care [Millwall]

EnQuest isn't an AIM company so they can't even cut & paste properly. We should know tomorrow the details of the windfall tax. The news channels are saying Rishi Sunak will announce a package of measures tomorrow including a windfall tax. I'd rather call it a "scapegoating tax" but we should escape relatively unscathed although it will dent our tax credits which are valued around zero by the market.

Hi Plethorus - I got this reply from IR on 12 Jan: "Regarding windfall tax – yes, if (ever) enacted in a similar way to prior “raids” we would expect to be able to use our tax losses to shield us. Of course, they could implement a new tax, which would then require us to review its rules and applicability of our tax position etc."

It would still impact our tax credits but the market seems to give them scant regard anyway. As to the second point that enables some negotiating. The whole mess is driven by opportunism by politicians and an ignorance of the industry. The climate lobby are as usual screaming like stuck pigs when they are a large part of the blame.
What have they done with all the money that's been thrown at them?

Was at 34.50 for 5,189,000 shares. Off-book with Trade flag TNCP
I found this for TNCP and I am none the wiser. It seems technical and I'm not reading anything in to it but if it continues may mean something.
"MiFIR requires certain trades to be flagged as a ‘transaction not-contributing to price formation’ (TNCP) (or similar). The TNCP flag includes technical transactions, such as collateral transfers, give-ups and give-ins, and interaffiliate trades undertaken for operational purposes. However, it also includes a number of transactions that may represent an economic trading interest, such as benchmark trades (see Appendix A2 for more detail). Given this, it is possible that applying a filter based on the TNCP flag alone may over-estimate the number of technical transactions. On the other hand, it is not clear that all technical transactions will have been identified as TNCP. For example, in Q1 2021 there were 540 trade sub-condition codes within the SI and OTC categories across the European equity market universe.9 While some of these codes have not been explicitly flagged as ‘TNCP’, the precise economic nature of the transaction is not clear from the available information. "

I only read the RNS. Thanks. Not sure if they mentioned a percentage in previous years.

Hi Martinen - the authority to purchase own shares was passed in the 2021 and previous years AGMs and may just be a refresher. Where did you get the number 10%?

I'm not and never will be a company secretary because it is mainly gibberish to me but your post did make me look more closely at the resolutions. In the 2021 AGM they finished with 'Articles of Association'.
This year's finishes with 'To call a general meeting of the company on not less than 14 days notice'.

I've never seen that before!

On 24 March EnQuest issue an RNS announcing Jonathan Swinney is leaving to become CFO at Tullow Oil.
This on 24 March (same day) https://www.ashurst.com/en/news-and-insights/news-deals-and-awards/ashurst-advises-tullow-oil-on-acquisition-of-interests-in-ghana/
Today we announce our AGM for 17 June 2022 at Ashurst LLP, London Fruit & Wool Exchange 1 Duval Square, London E1 6PW, United Kingdom.

I'm not really a conspi****** but these look like footprints to me?

"We are delighted to be supporting CeraPhi with this ground-breaking project that if proven could become a serious contributor to the renewable energy mix." Craig Nicol, Project Manager, NZTC

Well, he's covering his bet. It is in Petrofac's and EnQuest'd interest to go along with the scheme. I doubt they'll have to issue an RNS regarding the cost (cheap I guess) and it appeases those who want to end emissions but get the benefits of fossil fuels (probably impossible). I'm sure it'll work it is just the scale and economics. I mean, ballistas could work in the Ukraine war and they use renewable materials too.

Sad to report that Stuart Kirk, head of responsible investing at HSBC was arrested by the Gazpacho police in the middle of the night. Last heard update is that he being retrained at a deradicalisation unit on one of the offshore rigs due for decommissioning. In his absence the role is being overseen by the nine year old daughter of an activiswt randomly chosen on the basis that it is "about all our futures" whatever that means. Kim Jong Un has offered sanctuary for those who cannot handle the totalitarianism of the climate debate.

"Who controls the past controls the future. Who controls the present controls the past."
Don't believe what you read.
https://www.theguardian.com/business/2022/may/22/hsbc-suspends-head-of-responsible-investing-who-called-climate-warnings-shrill

"We need a more constructive dialogue. They say we don't need you by 2030, so why would you go and build a project that takes 6-7 years. Your shareholder will not allow you to do it".

"There is no good plan... When you don't have plan B ready, don't demonise plan A," he said. "The pressure and the rhetoric is -- don't invest, you will have stranded assets. It makes difficult for CEOs to make investments."

Stranded assets and all that. From the head of Saudi Aramco today. He got an invite to Davos but not to COP26. You'd have thought the politicians would know when to stop digging.

Source: https://www.reuters.com/business/energy/aramco-ceo-warns-global-oil-crunch-due-lack-investment-2022-05-23/

SIPP wrote "Take off is approaching."

Bloody hope so. I'm running out of runway.

What did people want in this febrile 'will they won't they' go for a windfall tax time. A comment like "EnQuest is a money machine" a la Looney? This is at the high end of what we expected. No shocks.