Capricorn Energy Share Discussion Threads

[dunderheed] 27/5/2022 21:39

Can't remember who bought the UK assets but surely simply they pay the tax on the sales of the product and CNE pay the tax on the CGT gain of sale of asset?
Hence no change to CNE position but the acquirer will (likely) be paying more tax on their sales?
If the deal isn't structured in that manner then that's a f up to the (senior senior senior?) financial management?

[frazboy] 27/5/2022 20:24

xxnjr, nigelpm - I had been pondering whether due to the way the deal was constructed, whether Cairn would pay the 25% tax rate. Possibly not, but I'm sure some lawyers and accountants will be kept busy finding out. If they don't pay the tax, then presumably the counter party pays double tax (the government still wants its money)? Is that a likely outcome? We'll find out eventually.

[nigelpm] 27/5/2022 14:50

Yes. This one more fortuitous than Indian receipt but nonetheless a very good timing point. And yet we still get numerous posts telling us all how poor management have been just because they didn't like the tender offer.

[xxnjr] 27/5/2022 13:43

A good Q remslie. Haven't looked at the numbers but would imagine we sold UKNS at a decent price at the time of the sale, with the deal structured to capture any upside in oil and gas prices. Don't recall any mention of Taxation..... oh hold on a moment lets check:-

".....Additional, uncapped contingent consideration will be payable to Cairn when Brent exceeds US$52/bbl on average in any of the five years 2021 to 2025. Assuming production is in line with Cairn forecasts, this contingent consideration is expected to generate approximately a further US$100 million at US$60/bbl Brent prices, US$175 million at US$70/bbl Brent prices, and US$240 million at US$80/bbl Brent prices.

No mention of taxation there. But I'll leave it to someone cleverer than myself to opine.....

All I'll say is, looking in the rear view mirror, Cairn seem to have exited UK production at a good time. We still have some UKNS exploration assets.

[silverstone1] 27/5/2022 12:51

IT ONLY AFFECTS PROFITABLE OIL & GAS PRODUCERS!

[remslie] 27/5/2022 09:25

Are they likely to be affected by the windfall tax?
Some of their future settlement from the sale of the North Sea assets is based on the performance of Kraken etc.
Any thoughts?

[silverstone1] 26/5/2022 14:40

WITHOUT CREATING ANY ASSETS, THE BOARD OF DIRECTORS MUST SPEND $1.06BN, IS IT BREWSTER'S MILLIONS?

[silverstone1] 26/5/2022 13:31

CONTROLLEDMADNESS, 169P WAS WHEN $1 WAS EQUIVALENT TO 79P, BUT $1 IS NOW EQUIVALENT TO 80P, DON'T YOU KNOW THAT EXCHANGE RATES ARE CONSTANTLY CHANGING?

[controlledmadness] 26/5/2022 12:56

Silverstone1. In post 7089 you quote 169p per share and now in post 7097 you quote 171p per share.
Is this the fish that you caught that keeps getting bigger with every telling.
Caps lock off or call a technician to fix the keyboard.

[silverstone1] 25/5/2022 22:52

THE BOARD OF DIRECTORS HAVE FAILED IN THEIR FIDUCIARY DUTY BECAUSE IF THE INDIAN PROCEEDS HAD BEEN RETURNED IN FULL VIA AN ISSUE OF B SHARES, ALL SHAREHOLDERS WOULD HAVE RECEIVED 171P PER SHARE AND THE ORDINARY SHARES WOULD STILL BE ABOVE 100P PER SHARE, THEREFORE, PROBABLY 50% MORE VALUE THAN THE TENDER OFFER AND BUYBACK PROGRAMME!

[dunderheed] 25/5/2022 20:31

7094, were they VERY senior management, very very senior management or just senior management?

[nigelpm] 25/5/2022 20:24

Why don't you post the question and reply and others can decide if you are talking sense or not.

[adg] 25/5/2022 20:08

Had another quarter reply from the senior management today to my valid questions - couldn’t make it up - it is honestly like a sketch from harry Enfield they really are tgat stupid and uninformed - obviously can’t even read a full email
I seriously despair

[silverstone1] 25/5/2022 12:06

TRON22, THANK YOU FOR YOUR POST, AT THE CURRENT EXCHANGE RATE, THE INDIAN PROCEEDS OF $1.06BN WOULD NOW BE 171P PER SHARE (INSTEAD OF THE TENDER OFFER AND BUYBACK PROGRAMME)!

[tron22] 25/5/2022 10:49

Silverstone- your analysis is spot on. I am new to this but have lived through the CNE initial dividend, share consolidation, then tender. This was a hell of a way to understand that I should stay far away from consolidations. I am stuck at a break even point of 2.39. GBP. The way I see it I have 2 options. (1) wait until the share rises, even with the buyback and cancellation I do not see this happening any time soon, or (2) buy more shares at this cheaper price point in order to lower my average cost and I can sell sooner (throw more money at the situation). Either way I wish the management at CNE had brains like you. A dividend would be the best play with all of the money they received. As a shareholder I don’t tangibly see the value (stock price rising) and the management team needs to be fired. I wonder if their annual compensation metrics had any influence on the events that unfolded. This has been a very expensive lesson learned.

[nigelpm] 24/5/2022 15:26

Funny - I misread the word "retired" at first.

[controlledmadness] 24/5/2022 15:16

silverstone1 - I know the company has said it intends to cancel the shares but I have seen no announcement that the 170 million shares have been cancelled and may not have been as this site still says there are 495 million share. If the company has 170 million and they are not cancelled then there are still 495 million shares only not all issued.
On another note I know you have said you are retired - is that why you use caps lock?

[silverstone1] 24/5/2022 14:08

"THE COMPANY INTENDS TO CANCEL THE PURCHASED ORDINARY SHARES". HOWEVER, THIS IS THE WORST WAY OF RETURNING CAPITAL TO SHAREHOLDERS, THE BEST WAY WOULD HAVE BEEN 169P PER SHARE IN CASH VIA AN ISSUE OF B SHARES AND THE ORDINARY SHARES WOULD STILL BE ABOVE 100P PER SHARE, BEFORE AN INEVITABLE SHARE CONSOLIDATION!

[tron22] 24/5/2022 13:57

They are purchasing the shares and then cancelling them, which is suppose to increase the stock price and provide value. But so far this is not happening on any level.

[nigelpm] 24/5/2022 11:39

Not cancelling gives the option to place I guess if an acquisition was forthcoming and an institution or other wanted to invest. But I'd imagine that's very unlikely - suspect they'll cancel at the end of each tranche.

[novicetrade68] 24/5/2022 11:00

I believe they're all going to be cancelled, appr. 170m shares from last month and so far above 7 million shares as part of the buy-back program.

Looking at the holding RNSes over the last few days it seems the total amount of shares is now +/- 321m so a MCAP of £640m.

[controlledmadness] 24/5/2022 10:45

Just out of interest. Have any shares been cancelled or are they also being kept to use in a purchase?

[tron22] 24/5/2022 10:03

How come the re-purchase of these shares do not make the stock price increase? Hopefully the price stays below £2 so they can purchase a bunch in hopes to raise the share price? Where is the value here for share holders?????

[silverstone1] 24/5/2022 08:20

CNE HAVE BEEN DOWNGRADED BY J.P. MORGAN, WHO ARE CONDUCTING THE BUYBACK PROGRAMME (PRESUMABLY TO KEEP IT UNDER 200P), WITH FRIENDS LIKE THIS, WHO NEEDS ENEMIES? WE SHOULD HAVE RECEIVED 169P PER SHARE IN CASH VIA AN ISSUE OF B SHARES!