Serica Energy Share Discussion Threads

[stemis] 24/4/2024 10:53

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 10:53

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

[undervaluedassets] 24/4/2024 10:09

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 10:00

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

[dcarn] 24/4/2024 09:50

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 09:46

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

[captainfatcat] 24/4/2024 09:38

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 09:37

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

[orchestralis] 24/4/2024 09:33

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

[bountyhunter] 24/4/2024 09:24

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 09:02

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 08:46

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 07:29

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 07:17

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

[mickinvest] 24/4/2024 07:10

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.

[oilinvestoral] 24/4/2024 07:10

Excellent results ! A lot better than I expected

[nigelpm] 23/4/2024 20:43

Agree the ability to make use of the tax losses will be important but not the be-all and end-all.

Be nice to have a few surprises tomorrow such as a large buyback or enhanced dividend.

[mickinvest] 23/4/2024 20:18

Results will be poor based on 30k bopd in 2nd half unless accountants can show Tailwind tax losses are more than useful.

[waterloo01] 23/4/2024 15:51

Looking forward to the results and update

[bountyhunter] 23/4/2024 14:02

Results Date/Investor Presentation/Date of CEO Change

London, 16 April 2024 - Serica Energy plc (AIM: SQZ) today confirms that it will announce its results for the year ended 31 December 2023 on 24 April 2024.

Roll on tomorrow.

[bountyhunter] 22/4/2024 10:39

post 6000, I'll take that :)

[bountyhunter] 22/4/2024 08:31

Yas, I agree that Tailwind was a poor acquisition and said so at the time. If the cash pile at that time had been returned to shareholders instead we would now hold the shares for free given the current price and that's excluding dividends.
Having said that I also think SQZ will deliver from here and agree that the date of publication of results is not a concern as it's always around this time in April.
OAl thanks for replying to my question.
Mick yes those tax losses were mentioned a lot at the time but we have not heard much since.

[oilinvestoral] 22/4/2024 08:29

Thanks Yas ! Critical thinking is a lost skill specially amongst bean counters !

[oilinvestoral] 22/4/2024 08:28

Who lifted Thaaaaaaaaargs rock! First post in 4 years! Long Covid? Lmao