Serica Energy Share Discussion Threads

[ashkv] 27/6/2024 16:59

I should have averaged down at low 140s prior to ex-div!!!

Agree SQZ is undervalued!!

Also Net Payout Yield Including GBP 15mn recently concluding buyback is 20% including 17% Dividend (24p) plus Buyback

Net Payout Yield = Dividend + Special Dividend + Buyback!!!

Perhaps SQZ will buy Jadestone Energy -> 23,000 boe/d of Asian/Australian low tax high profit production going forward and a measly Enterprise Value of US$282million - also has a compelling mega gas project in Vietnam in the hopper.

Around 600mn decom costs but long dated / and easily managed!!!

[mariopeter] 27/6/2024 16:16

I do like the Chairman's statement. Ireland too has turned it's back on indigenous gas but hoping that will change after their oncoming general election. Utter madness. Mercuria will want to change things around if Labour persist.

Longboat's share price reacted very well after they ditched high tax Norwegian assets for Asia.

[ct8637] 27/6/2024 16:16

It'll go back up, eventually. Generating large sums of cash and profit. New CEO in a few days and potential M&A activity. Short term though there is a large seller that's adding downward pressure so it'll drop more. Average down. Unless you're already retired and living off your SIPP I'd say this is a fairly safe bet long term. It's in my SIPP too, but I don't need it for another 30 odd years ha

[kenmitch] 27/6/2024 15:59

SQZ looks a stunning bargain after the relentless share price fall. There’s even a good chance they can maintain the dividend and the yield is 17% at the current price. Even if they have to halve the dividend, 8.5% is still a good yield.

Current Labour North Sea policy is nonsensical as the Chairman made very clear in his AGM statement. New Governments soon have to face reality and that often means manifesto and pre election plans getting ditched. And it’s not impossible that Ed Milliband will get ditched too. It’s the same with the ludicrous huge fines for car Companies failing to reach electric car sale targets. They too can move production overseas to Countries less stupid.

I averaged down today (down 20% excluding dividends) because SQZ can and will if necessary change tactics as Harbour (I hold) has and look elsewhere instead of UK IF Labour are stupid enough to decimate our North Sea oil industry with all the job losses that would mean, on top of the huge loss of oil and tax revenues.

Note the very last sentence from this section of the Chairman’s comment today:-

“Over just a few years Serica has been transformed from a small international exploration focussed company into one of the top 10 producers in the UK North Sea, safely and responsibly operating complex facilities offshore and growing its 2P reserves some 35 times since the beginning of 2015. To deliver these achievements we have navigated operational challenges, oil and gas prices hitting historic lows - remember gas prices of 10 pence a therm in May 2020 - and pulled off multiple good acquisitions. With the assets, financial strength, staff and leadership now in place, we have a very solid platform for entering the next phase of growth."

"We are rightly proud of our track record of growth and value creation, and we aim to repeat the same in the future. Unfortunately, recent and potential future increases in UK oil and gas taxes make that increasingly difficult. Consequently, while we remain watchful for opportunities in the UK that might be attractive despite this increasingly challenging context, we are also looking very actively overseas."

[davethehorse] 27/6/2024 15:57

What an absolute sh*t show here

[nemesis6] 27/6/2024 13:06

Just hoping it will go back up it's in my sipp you see

[spawny100] 27/6/2024 12:56

I don't know why people buy in the day before exdiv. The pre exdiv rise (if any) will have already happened and share will usually drop at least div amount the following day. Doesn't make sense to me.

[cat33] 27/6/2024 12:55

Interesting write up by Jimhttps://oilman.beehiiv.com/p/oilman-jims-letter-june-27-2024Worth reading

[swanvesta] 27/6/2024 12:22

Why do so many people apparently hang on for a 14p dividend, and then willingly sell for a 20p discount?

[farrugia] 27/6/2024 11:28

its all about populism and taxes

look at the electric revolution. USA and EU is slapping Chinese electric car producers with hefty taxes to protect their industries. So much for helping the environment.

The UK is short-sighted and will come to haunt them.

[brucie5] 27/6/2024 10:49

What's consensus here on dividend being sustained? All things being equal the chart points the share price back down to £1 support, not far off where it was in 2020 sut down.

[officerdigby] 27/6/2024 09:11

"Pity the politicians don't comprehend."They do comprehend. It politics. It suits to keep the narrative of fat cat O&G.Shell earns that, BP profit was this. They making money out your misery. We'll hit them hard... And remove emissions Reality. The 'fat cat's OG left UK years ago.And produce in jurisdictions with less regulation.And more CO2 transporting etc.Russia and US et al. Just laugh at the EU/UK politics on this. Even Norway get it.

[slicethepie] 27/6/2024 08:56

Ed rubberband still thinks the world is flat !

[squibno1] 27/6/2024 08:35

Chairman comment -
"As was stated in the Supreme Court decision, emissions respect no borders. The oil and gas we do not produce, we still import and consume. Global emissions will be no less because the oil or gas is not produced in the UK."

Pity the politicians don't comprehend.

[plasybryn] 27/6/2024 08:25

Great statement by the Chairman. Hope it is well read and circulated.

[yasx] 27/6/2024 08:15

Perhaps the Board should have considered the risk before agreeing the acquisition rather than complaining after the event. The stance of both pokitical parties has been pretty clear to everyone for the past few years.

Fortunately SQZ can still acquire their way out of this mess but it has been a costly mistake

[slicethepie] 27/6/2024 07:26

Ed rubberband views are terrifying, we will be a green island with no money surrounded by a world coping with climate change

[arlington chetwynd talbott] 27/6/2024 07:25

A 19p dividend? There seems to be 5p of disappointment in there.

[sawney] 27/6/2024 07:18

The chairman's statement pretty much sums up the Labour Loony Energy Plan...
The effect on the NS will be catastrophic...
Prediction...Shell to announce they're off to the Nasdaq by the end of the year...and BP are sure to follow....

[arlington chetwynd talbott] 27/6/2024 07:09

So much for the Auctus note.

[wallywoo] 27/6/2024 06:55

Big day today. Xd (14p), and the trading update. Where will it finish!!

[waterloo01] 27/6/2024 06:34

That's a lot of maintenance work and downtime. Thankfully they maintain guidance. Getting all the spend out the way for a stonking 2025?