Profits, cash flow and dividend. What a great combination! |
Chances of both? |
According to investor call "Divi will be maintained as a priority over share buybacks".
So that's a yield of 14.8% |
Whilst there was some anxiety voiced around the possibility of a dividend cut I think drilling results put that in the rear view mirror. Sustained high gas and oil prices combined with better than expected drilling results the current dividend looks nailed on. |
Finals in April. |
Good set of results!
When does the divi get announced? |
I've always been of the opinion the divi would be retained. Cash distribution was how Tailwind operated and with Mercuria owning 25% of Serica, they'd want their income stream to remain. |
The share price is projected to rise to 190 by Zak Mir. |
Yes encouraging results, including
"The five-well drilling campaign at Triton is now half-way through and delivering excellent results, with the Gannet GE05 well performing ahead of expectations." |
Agreed those were the two bits that stood out to me, alongside the massive tax relief and use of such to strengthen reliability. Sound business logic. Was hoping the divi would be announced but assuming it will be 23p again but with some potential buybacks as well? |
Decent results.
· Material cash flows to support Serica's strategy and track record of delivering direct returns of capital to investors through a mixture of a material dividend and share buy backs remains unchanged
· Preparatory work is ongoing regarding a move from the AIM to the Main Market of the LSE in 2025, on which further updates will be provided in due course |
That's the thing about lithium batteries - once they catch fire it's pretty much impossible to extinguish. You just have to let them burn themselves out. |
Not to mention in the above documentary, California (very net zero) now has the highest electricity prices in the USA. And incidentally one of California's largest battery storage plants went up in smoke the other day and the fire fighting people could do nothing about it as they just had to let the entire plant of lithium batteries burn out (nothing to do with the LA fires). |
 I watched a Sky Australia documentary on youtube about them striving for net zero.
Amongst other things it explained how Aus pays for its electricity generation and how ALL of the generated electricity is charged at the most expensive tender.
The renewables start the process - BUT when they cannot meet all the demand the last part to tender for the last megawatts or whatever determines the price.
As that is the gas fired - not their ultra cheap coal because they have shut all but one power station and because they are off /on with added costs each time they charge a fortune - examples were something like 500x (if I remember correctly). In summary AUS electricity because on a good day 60% + could be renewable means they are now hostage to the gas on poor days so they are paying far more on average and always will.
Batteries , hydro-electric storage etc are all being investigated -but are not going to keep up with demand.
Worst of it is they refuse to use their own gas - I think they are importing , whilst exporting their own....
look up on youtube something like The True Cost of Net Zero |
Solar now 0%. Wind down to 6.1%. "Unreliable" gas on 65.6%.
The gov's policy is a complete shambles. According to NESO the governments plans (apparently) envisage having 100% gas back up of renewables for days like today. OTOH windfall taxes and fiscal instability are accelerating UKNS Gas production decline as companies operating here simply give up and invest elsewhere. The whole electrical grid may collapse at some point! What we really need to do (some say) is build about 6 new nuclear power stations (preferably from Korea, not EDF!) or build a lot of new Gas Fired Power Stations with the gas being imported from Norway, USA(LNG) and Qatar(LNG). Not good for the balance of payments! Hopefully this reality will sink into Millibrains head and the gov changes track. UK definitely needs to incentivise gas production! |
Just thinking, on a day when 61% of the country's electricity is being generated by gas and 9.3% is from renewables, how are Labour going to power Britain as an "AI Superpower" when it is their intention to remove fossil fuels from electricity generation entirely?
I have been looking at a few US energy stocks and Cheniere Energy's (worlds second largest LNG company) price is rocketing on the back of the AI hype, whilst Millband is desperately trying to snub out what little O&G we have here. All the associated chat around AI and Bitcoin is just how much power generation will be required to fuel them.
Companies like Serica should be incentivised to do what they have been doing well for the last few years, and get as much out of existing discoveries, rather than trying to drive them away.
And as for shipping gas from the US! |
Anyone listen to the call? (It's tomorrow!) |
I agree, suddenly when it's dawning on those short sighted politicians that domestic O&G production makes sense for all kinds of reasons there's not so many NS companies left, with SQZ being one of the main NS focussed producers remaining. The result will be less NS production to tax and a higher carbon footprint and cost to import the deficit. |
160p will do for Tuesday but hopefully 400p+ longer term. I think reality is dawning re oil and gas, and market sentiment is improving. In my view, SQZ is the UK NS E&P player with the most potential. |
I fancy a return to 400p+ myself, then I won't make the same mistake again! ;-) |
Is that all? |
I can only see good news coming on Tuesday
The share price I think will get to 160p
Here's hoping. |
Investor Meet Co on Tuesday 9o'clock |
Considering the positive news flow for gas and the strong price performance, on top of the dividend yield of Serica, this really should go higher |
Plus maybe talk of European Gas Storage depleting at a faster rate than usual may result in higher gas prices than usual for the summer months as Euro nations struggle to rebuild their gas stocks. |
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