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It’s truly astounding they have found so many ******s to sell that many shares at this truly ridiculous price. Dear ******s, thank you very much for allowing me the opportunity to take money out of your pockets and put it into mine.
These are valid point but connect the dots and answer me this. Even with the hedges. Even with the capex. Even with dividends. Even with windfall taxes. Do you think that trading at likely will be 1-2x ebitda for the year May be a bit low?
Of course the interims will be good. We sell gas. Gas price has gone through roof due to external factors that have absolutely nothing to do with management. I could have put my mom in charge of Serica in January and I would wager the performance would have been near identical as she would have done as mitch and the other boys. Ie nothing but count the cash as it rolls in from higher gas prices whilst doing sweet fa with it apart from taking huge salaries and share options.
Amen to that shakey!!!
It’s actually not even safe to hold that much cash. Where is it? In a bank? In multiples banks? In short term investments? Who is managing it? What if the banks went over? Is there a mark to market implication on it if we hold in front end govvies?!
It’s a truly ridiculous amount to sit there and allow people with no experience to manage. And more importantly it’s a serious drag of shareholder returns to have it making zero irr when inflation is double digits.
In real terms we are losing 10% every ****ing year!!!! That’s 50m a year by doing sweet fa with it. I’m a shareholder. I would rather have the cash so I can do something with it if they can’t be arsed.
There job is to maximise shareholder value and n an oil and gas company. Tell me how sitting on $500m of cash is doing that. Are they now a cash management business? A fund manager?
They are clearly not doing their jobs at the moment which is why kistos had a nibble at them. The management are coasting and taking the path of least resistance.
At 60m boe reserves and 30k daily production we have less than 5 years of production (and we already 8 months through the year so we have less than 5 years at this point in time!!). A hit at North Eig would take a few years to get online so should not have been the plan A to boost reserve life.
Management are asleep at the week and could have added reserves very easily many times over the last 12-24 months via acquisition. The majors have literally been giving away assets for fields they saw too small to bother with. What did Mitch do? He did nothing.
Holding that much cash on balance sheet is a seriously uneconomical capital structure. It’s far far far too much. We are not Microsoft. Use it or lose it.
Serica don’t have a huge reserve life. The lazy ass management could continue to sit there doing sweet fa with our hundreds of millions and their fat salaries. But they could have been buying up assets at knock down valuations. They decided to take the easy route. Now either, pay me a huge dividend with Cash that belongs to shareholders or do something to increase production and extend reserve life. Or failing that, resign or sell up and let someone with some balls take over.
Labour announcing this is the same as me announcing I would make Margot Robbie blow me every morning if I was PM. There is not even a general election for years. It’s totally meaningless political bluster and bull**** with absolutely no chance of happened by any time in the remotely distant future.
at the current share price are we pricing in any contribution from Chad anyway?
So it’s now a ‘show me’ story from Serica management. You need to come back and show me who the **** you intend to spend my money as a shareholder to create returns for me. I’m not content to allow you to accumulate cash whilst paying yourselves handsomely for inactivity and doing **** all to grow this biz via acquisition. Do t give me the valuations ****** as the majors are still giving away assets for pretty much free at the current price deck.
In short….ship up, or ship out.
Based on nothing other than an opinion….
The last earnings presentation gave specific sounding on M&A. Indeed, large transformational M&A is at the heart of the culture of this management team. Place this alongside the fact the cash build will be so significant this year. And that the balance sheet strength gives them options well beyond dividends and buybacks….
Management silence…?! If this company is not actively engaged in large scale transformational M&A discussions at the moment I will eat my shorts. Even having those discussions there will be company imposed blackout periods. No communication. No unscheduled stock purchases and sales.
2 + 2 here most likely does = 4 IMO.
Surely someone can give him some reserve based lending or he can hook up with a trading house who can pay upfront and let him forward sell some gas production?
If he can do that. Come back all cash at 500. Hit. The. Bid.
Charts chart charts. How about this chart. It’s literally the only chart you need.
https://tradingeconomics.com/commodity/uk-natural-gas
Company sells gas. Gas prices through roof. Company make lot of cash. Cash build up on balance sheet. Cash reduce debt. Reduce debt create equity value. Cash also use buy back stock. Buy back stock also create equity value.
It’s truly truly baffling how the market values this stock. There is no sane or rational metric that does not scream this should be meaningfully meaningfully higher. It’s such a simple biz to understand and model and even with new tax assumptions we are trading at an irrational level.
Spare funds? How much do you think an m&a defence costs. Clue: it ain’t £500m.
The best defence Serica can do is to show they will actually look to grow the biz rather than sit on their fat salaries and lazy asses counting their gold.
Grow or be gobbled up.