RE: North Sea energy firms look beyond UK after tax squeeze4 Jun 2024 11:09
The decline of our share price is pretty shocking.
For now, I think it's out of the hands of the BoD unless they do something dramatic like diversifying overseas or moving to the main market or quadrupling the dividend. None of these things are likely in my view.
I feel things are bound to pick up in the longer term with steady production and cashflow, despite the "windfall" tax, since Serica is a solid company with a strong asset base, a high level of 2P reserves, a low level of debt, and reasonably low production costs. We have greater endurance potential than most.
Eventually the ConLabs will realise what damage they've done and mend their ways. It will be too late for many companies but there may be opportunities for the likes of Serica.
I think those with the nerve to hold will be rewarded at some point, but I'm not sure how long that's going to take.
Is it worth holding and hoping for the best or is it better to crystallise a considerable loss and move on?