Serica Energy Share Discussion Threads

[bountyhunter] 24/4/2024 11:17

SERICA ENERGY PLC will shortly be holding the meeting Investor Presentation at 2:00pm.

Can't make to to prior commitment but hopefully someone here can.

investormeetcompany.com

[stemis] 24/4/2024 11:15

Labours potential tax plans :



Labour have subsquently confirmed that they would not backdate the tax changes they are planning

[nigelpm] 24/4/2024 11:05

Yes, I agree bounty - I looked into it a while back. Retrospective is highly unlikely.

[bountyhunter] 24/4/2024 10:52

I've not read your link but my understanding is that it's just the development tax reduction that's potentially affected going forwards if/when Labour win not historical tax losses. Retrospective legislation would be highly unusual so I wouldn't expect carried forward historical tax losses to be affected.

[oilinvestoral] 24/4/2024 10:46

Labours potential tax plans :https://assets.publishing.service.gov.uk/media/65c66cbf9c5b7f000c951c82/Opposition_costing_-_Oil_and_Gas_Levy__003__final.pdfNothing confirmed but would be cautious as using tax losses to justify egregious acquisition cost until Labour show their true colours When someone tells you who they are, believe them !

[nigelpm] 24/4/2024 10:07

The tax losses have little value until Labour confirm their plans.

That's fundamentally incorrect. They made use of them in 2023 and will make use of them in 2024 also. Unless you are implying that they will retrospectively claw the tax back?

[oilinvestoral] 24/4/2024 09:59

Disappointed to see the stock market doesn't seem as enamoured as I was at 7am this morning with the results. Will have to re-read in the evening to make sure I haven't missed anything...

[orchestralis] 24/4/2024 09:53

11% Divi reinvested means original stake covered in 7 years with compounding.

[stemis] 24/4/2024 09:53

So all the 'worries' turned out to be unfounded. Dividend held and no 'write offs'. Interesting to see, in the analysis of the acquisition of Tailwind, the valuation placed on the deferred asset acquired; £264.914m (actually I think the value of the losses are £331.277m and that there must be other timing differences going the other way). That equates to around £6/bbl 2P.

To me that puts the net cost of Tailwind at £5.2/bbl 2P although I imagine some on here would argue for £8.4/bbl 2P. Bargain...

With 2P reserves now of 140.3m bbl and an EV (at 200p) of £688m SQZ is now valued at £4.9/bbl or 1.8 x EBITDAX, with a yield of 11.5%.

2024 will see a further 82 days production from Tailwind, an increase in production (guidance is 41-46,000 compared to 40,121 in 2023), probably a higher oil price (compared to $71 in 2023) as hedges are replaced offset by a slight increase in operating costs ($20/boe target compared to $19/boe 2023). What's not to like?

Personally however I think the buy back is a waste of money, small though it is...

[bountyhunter] 24/4/2024 09:53

The dividend info is now at the end of the header for future reference.

[undervaluedassets] 24/4/2024 09:09

As was said.. The "it is better to travel than arrive" brigade have sold a few.

And I have bought a few off them.

Extremely cheap and a strategic asset in the UK's energy inventory.

Happy to hold here and count my divis

[ntv] 24/4/2024 09:00

Why is the share price dying FFS
Yield is 11%?

[dcarn] 24/4/2024 08:50

As per RNS

Subject to shareholder approval at the AGM, a final 2023 dividend of 14p per share
will be payable on 24 July 2024 to shareholders registered on 28 June 2024 with an
ex-dividend date of 27 June 2024.

[melton john] 24/4/2024 08:46

I believe it is yet to be confirmed but 29jun last year xdiv 27jul paid.

[captainfatcat] 24/4/2024 08:38

Pleased with todays news considering the operational challenges current tax regime etc. Buybacks confirmed and divi maintained.mean I'm considering adding a few more to the pot.

[creditcrunchies] 24/4/2024 08:37

27th June in the RNS I think 24th July payment

[orchestralis] 24/4/2024 08:33

When is Xd and payment date please? I couldn't see it in the results.

[bountyhunter] 24/4/2024 08:24

9 months for 2023 and ongoing deferred tax losses from the acquisition compensate for the reduction in net cash primarily resulting from the consideration paid on completion of the Tailwind acquisition. Significantly we have the substantial production and reserves increases to accompany this and rebalancing of the portfolio.

[undervaluedassets] 24/4/2024 08:02

These results are a miracle aren't they .. considering the taxman still has his foot on Serica's neck.

Bought a few more.

[bountyhunter] 24/4/2024 07:46

I nearly sold a while ago but in the end didn't as I decided that the results would most likely be fine with the 14p final dividend maintained, as posted previously. Full year for 2023 up to 23p from 22p, by 4.5%. The £15m buyback is a bonus.

[dcarn] 24/4/2024 06:29

There's not much not to like about that. Delighted the divi's retained with the bonus of a buyback.
Onwards and upwards.

[nigelpm] 24/4/2024 06:17

Yes. Buyback as hoped for and decent usage of tailwind tax losses. Pretty much all as I expected.

[mickinvest] 24/4/2024 06:10

I've got to say I like it, 14p dividend held and £15m share buyback starting today, you'll be happy with that Nigel?

Next year should look a lot better with the tax kickbacks from the large capex this year so will be buying few more at this price today if available.