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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Serica Energy Plc | SQZ | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 2.80 | 2.07% | 137.80 | 10:31:38 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 135.00 | 135.00 | 140.00 | 135.00 |
| Industry Sector |
|---|
| OIL & GAS PRODUCERS |
| Top Posts |
|---|
Posted at 13/9/2024 09:18 by undervaluedassets The "half a billion dollars of cash flow after currently committed investments over the coming three years" has clearly registered in investors mindsHow could it not |
Posted at 11/9/2024 08:18 by undervaluedassets from the results statement of yesterday.."Following the share buyback of £15 million ($19 million), interim dividend of 9p declared today, unchanged on 2023. This reflects the Company's confidence in its medium-term robust cash generation outlook, with the expectation of generating over half a billion dollars of cash flow after currently committed investments over the coming three years at current commodity prices, after factoring in the expected tax regime" As a reminder ... a billion dollars of cash flow is more than the entire market cap of the company Tangible proof that that is not just hot air, is the 17% yield that investors will receive this year. Going forwards, the company made it known yesterday that it is committed to paying dividends out of its substantial cashflows. One suspects those who sold yesterday may have done so a little early. |
Posted at 10/9/2024 10:26 by ashkv In today's Webinar CFO conveyed work is starting on a move to the main market / however, such a move is only allowed within 9 months of the prior audited results.HY 2024 results are not audited by an external party - CEO has been onboard for 2 months and CFO for 6 months!! CFO indicated that move to main market will almost certainly happen post FY 2024 results. Also indicated M&A screening is ongoing at present / and an active process!!! 74sjh10 Sep '24 - 11:21 - 7051 of 7053 0 0 0 Two simple moves that sqz could have done but didn’t - cancel the dividend and move to the main market. If they continue as they are, their tax credits will run out in a few years, they will have a far smaller M&A war chest then they could have had and AIM listed paper is not going to appeal to investors for deals as much as main market. |
Posted at 10/9/2024 10:21 by 74sjh Two simple moves that sqz could have done but didn't - cancel the dividend and move to the main market.If they continue as they are, their tax credits will run out in a few years, they will have a far smaller M&A war chest then they could have had and AIM listed paper is not going to appeal to investors for deals as much as main market. |
Posted at 10/9/2024 07:23 by ashkv Buyback are waiting on the below ->"Once there is more clarity on capital allowances (and hence the viability of further investment opportunities in our portfolio), we will be able to conclude our analysis of all possible ways to maximise the creation of shareholder value. This will include giving investors greater medium-term visibility on our capital allocation policy, including the mix of dividends and share buybacks. In addition, following recent changes to the UK listing rules, and as part of our goal to maximise our potential investor base, we are considering a potential move from the AIM to the Main Market. If, following the conclusion of our evaluation, our Board concludes that this is in the best interests of shareholders, we would give ample notice of the timing of such a move." |
Posted at 07/9/2024 11:39 by nigelpm Just too cheap now. Like Wshak (one of the best investors I've known over time) I'm buying more here. |
Posted at 21/8/2024 14:15 by mount teide Action of the last and present Government towards the UK's World leading O&G Industry is not just recklessly naive from an energy security perspective but, downright vindictive to its workforce and investors.North Sea Oil Producers Warn of Mass Exodus - Oilprice.com 20th August 2024 'The UK’s oil industry has had a tough few years. The future does not promise a change in a positive direction, either. It seems all hope for this has been lost, and some oil drillers are looking at other jurisdictions for their future survival. This is certainly the case for Serica Energy, one of the biggest suppliers of oil and gas to the UK, operating fields in the North Sea. Once upon a time, the North Sea was one of the biggest oil- and gas-producing regions in the world. Serica Energy chairman David Latin recently dropped what should have been a giant bomb for any government concerned with energy security. “The UK is now fiscally more unstable than almost anywhere else on the planet,” he said, as quoted by the Telegraph. “That means we are looking for new places to invest our money. And Norway is a place where potentially we could recreate our business model.” The statement by Latin is nothing but a confirmation that a Labour government fixated on boosting the amount of wind and solar capacity in the country and funding this boost with oil and gas tax money is driving the industry away. Plans to further increase windfall profit taxes on the industry and the removal of a tax incentive that kept producers at home until the Keir Starmer government took over might prove the last nudge out the door. There is also uncertainty about future energy policies that make North Sea oil and gas operators reluctant to invest in local production. “Policy uncertainty reduces our willingness to spend money to do things quickly because if we spend and the policy changes, then we have to start all over again,” the chairman of one relatively small producer, Ping Petroleum, told the Financial Times this week. “People are walking away from fields with significant reserves,” Robert Fisher said. As Serica’s chairman suggests, those who are walking away from the British North Sea will probably find other places to invest their money. The British government, however, would be hard-placed to find another industry it could fleece that deeply and get away with it. And this is a big problem because Labour has promised a fast and ambitious transition to wind, solar, and hydrogen. And fast and ambitious costs more money than just one or the other. The Financial Times reported that tax income from the oil and gas industry had reached close to 10 billion pounds last year, but the amount is set to drop off a cliff over the next five years to just above 2 billion pounds in 2028. This will not be enough to fund what the Labour government calls Great British Energy—the state-owned transition vehicle for financing the transition. “If the government implements the kind of windfall taxes they are talking about, then you end up with a cliff edge in UK energy production because the industry will be taxed into uncompetitiveness,&# In other words, if oil and gas producers currently operating in the British section of the North Sea want to ensure their long-term survival, they’d better look for opportunities abroad. For Serica, Norway is the no-brainer destination. If it doesn’t work there, the company will look elsewhere, per its chairman. The important bit is that it will no longer supply oil and gas to the UK. And if others follow, there will be thousands of jobs lost, and the UK will, rather ironically, become even more dependent on energy imports.' |
Posted at 02/8/2024 10:55 by brucie5 Benjamin Graham Enterprising Investor screenSerica Energy (LON:SQZ) Serica is an oil and gas producer in the UK. This has been a terrible place to be an oil producer as successive governments have sought to burden the industry with increased taxation. On top of this, the incoming government have pledged to ban new North Sea Developments. Of course, oil and gas are global commodities, and reducing production in the UK will not necessarily reduce the UK's carbon emissions; it will just reduce UK tax revenue. As non-sensical as this appears, investors have to play the hand they are dealt, not the hand they would prefer. Despite this poor outlook for the industry, the metrics here are compelling: 9d21250f-083a-49cd-a The only weak metric is free cash flow. Here, the company have been ramping up capex: 0d908623-5d12-43a8-b This is partly due to the ability to offset this investment against very high tax rates. One risk is that the current government don't allow this to be offset in the future. Barring this rather extreme scenario, it seems hard to imagine a scenario where Serica doesn't generate significant cashflows in the future and return these to shareholders in the form of dividends. |
Posted at 16/7/2024 13:42 by ashkv CEO has purchased GBP 600k at higher prices than todayFrom Surprised on the other forum -> Investors Chronicle Today No one knows a company quite as well as its directors, which is why it is worth keeping an eye on director buying and selling. New Ceo Chris Cox purchsed over £600k of SQZ shares. Despite the energy industry’s gloom about Labour’s plans to bring in higher taxes and block new developments in the North Sea, investors are far more optimistic. Serica Energy (SQZ), one of the hardest hit by the windfall tax, was in the top-10 additions to Fidelity ISAs in June, alongside BP (BP.). Serica itself has warned of the impact of the government’s plan to reduce tax relief for capital expenditure, which will “rapidly and terminally accelerate the decline in UK oil and gas production”, in the words of chair David Latin. But it’s not just retail shareholders who are optimistic. “We see the market as more than discounting the impact of windfall taxes, with c.95 per cent of the current market cap generated in free cash flow across 2024-2026 at our $70 (£55) a barrel oil price forecast,” said Stifel analyst Chris Wheaton, not an advocate for Labour’s North Sea policies. On an operational basis, 2024 has been good for Serica thus far. Production guidance has recently been reiterated at around 43,500 barrels of oil equivalent per day (boepd), after successful well campaigns at the Bruce and Guillemot fields. The company also has net cash of £121mn, providing “significant firepower” for M&A alongside its free cash flow generation, argued Investec analyst Alex Smith. |
Posted at 15/7/2024 10:18 by ashkv From Surprised on the other forum ->Investors Chronicle Today No one knows a company quite as well as its directors, which is why it is worth keeping an eye on director buying and selling. New Ceo Chris Cox purchsed over £600k of SQZ shares. Despite the energy industry’s gloom about Labour’s plans to bring in higher taxes and block new developments in the North Sea, investors are far more optimistic. Serica Energy (SQZ), one of the hardest hit by the windfall tax, was in the top-10 additions to Fidelity ISAs in June, alongside BP (BP.). Serica itself has warned of the impact of the government’s plan to reduce tax relief for capital expenditure, which will “rapidly and terminally accelerate the decline in UK oil and gas production”, in the words of chair David Latin. But it’s not just retail shareholders who are optimistic. “We see the market as more than discounting the impact of windfall taxes, with c.95 per cent of the current market cap generated in free cash flow across 2024-2026 at our $70 (£55) a barrel oil price forecast,” said Stifel analyst Chris Wheaton, not an advocate for Labour’s North Sea policies. On an operational basis, 2024 has been good for Serica thus far. Production guidance has recently been reiterated at around 43,500 barrels of oil equivalent per day (boepd), after successful well campaigns at the Bruce and Guillemot fields. The company also has net cash of £121mn, providing “significant firepower” for M&A alongside its free cash flow generation, argued Investec analyst Alex Smith. |
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