Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
when I log in and see that i3e is actually up. Not even asking for much, just 0.25 pence of whatever. Seems that when oil and gas prices move up they have no effect on the share price. Does beg the question though, what will have an effect?
Doesn't DEC always fall a bit once it's gone ex divi and then slowly rise as we approach the next divi date?
This has to be one of the safest divi plays on the market surely ?
According to the chart we've lost 10p in a week. Very strange. Wonder if DEC is being hammered as if it's an oil stock rather than a mostly hedged gas play? Bet when oil goes back up it'll then be valued as a gas producer though.
And importing LNG is about ten times as carbon intensive as producing it on your doorstep, which shows how they don't really care about the environment either. Not to mention that most of the LNG would have come from fracked sources which they don't allow here.
Exactly. It would have been sensible and fairer, hence they didn't do it. I think you give too much credit to the current government. Their intent is to hand over a trashed economy to the next government with falling tax revenues. A bit like what Labour usually do to them. Labour will then seem like the bad guys as they make tough decisions to try and balance the books again. What sane individual would put taxes up to punitive rates on producers of something we are so short of? Only someone whose intent is to make the situation a lot worse would do that.
Be very surprised if Mr Hunt changes his mind. The guy is a 5th columnist hell bent on handing over a destroyed economy to Labour in 2024.
You may be able to offset some of the tax now by investing, but when those investments come to fruition they are still going to be taxed at 75% or even more depending on the flavour of government then. If commodity prices fall then there could be no profit to be had in the future. I don't see how the North Sea is investable at the moment.
Having Jeremy Hunt as chancellor is like having a 5th columnist in charge of the nation's finances.
What is happening to the huge difference between NOI and capex and dividend payments ? Are they just building up a massive war chest for acquisitions?
Too much credit to politicians I think. They would rather decimate tax receipts and have us in rolling blackouts than admit they got something wrong.
Really does feel like there's a bunch of 5th columnists in charge at the moment.
Oil price must be getting close now to the level where the windfall tax can go. Didn't Rishi say something about when it gets to between 70 and 80$ ? Look at that pig flying past over there.
At least production in the USA is actually valued at something without ridiculous tax rates like the UK.
Itsaponzi exactly. NS oilies are only really valued at cash at the mo. Nothing is given for production. Serica enterprise value barely a couple of hundred million for almost 30k boepd. Double that and you get Ithaca's production which suggests 400 million would be a fair shout. That doesn't even take into consideration the debt here.
What happened at 3pm today? Seemed to be going ok even after comrade Hunt delivered the expected increase in the WFT.
News on the drill leaked ?
Flabby that is correct. Labour did indeed call for an extra 10%. The most insane thing after Rishi actually added an extra 25% instead, was that Labour then started calling for a windfall tax. It then got reported in the left wing press that Rishi was refusing to put a windfall tax on profits. I sometimes can't believe what I'm hearing/seeing sometimes. Are politicians really that stupid or just evil? The IQ levels on some of them must be so low that it wouldn't even register.
Why would any sane company develop in the North Sea any more ? How could Cambo be worthwhile at 75% tax or whatever rate the chancellor feels like on a particular day?
I think there will be a move to buy shares in companies listed in the USA and Canada etc as Thursday's budget will pretty much render the North Sea uninvestable. Should hopefully be good for DEC.
Seems a terrible time to be a producer in the North Sea. Most assets soon to be rendered worthless with increases to the already eye watering windfall tax.
I guess the idea will be to totally destroy North Sea production so that the Scots won't go for independence. Will also move production away from the UK to other countries so we can destroy our own industry just to virtue signal with net zero. What wonderful politicians we have!
Just reading about this and they produce approx 66,700boepd, mostly oil and they're saying it could be valued at 2 - 3 billion dollars. Who in their right mind would pay pay that much for a company when Serica produces about half that (mostly gas too which goes for more than oil) and has an enterprise value of about 300 mil or so ?
Ithaca has quite a bit of debt as well so it's even worse. Did they not get the memo or something?
With North Sea reserves about to become almost worthless with relentless windfall taxes, Ithaca has to be the most nailed on short on the market at the mo surely ?
The way things are going with windfall taxes we'll have to pay someone to take the North Sea assets of our hands.
It's the threat of an even higher windfall tax. If the government increases it from the already ridiculous 65% then North Sea producers will effectively only be allowed to keep nominal profits. They'll be complaining next that nobody wants to invest in the North Sea to help with energy security after that.