Serica Energy Share Discussion Threads

[melton john] 14/5/2024 08:56

Hello dave, remember your name from POLR, that took a while to correct but happy to collect the divi's while we waited. Same here, a good return on my initial investment divi wise and waiting to buy more when the trend goes up. I'm a patient man. Good luck hope the politics don't screw us.

[bountyhunter] 14/5/2024 08:20

14 May 2024 - Serica Energy plc (AIM: SQZ), a British independent upstream oil and gas company, announces the appointment of Chris Cox as Chief Executive Officer ("CEO"). This will take effect on 1 July 2024[1], with David Latin (Chairman of Serica) ceasing his temporary role as Interim CEO at the same time.

Chris Cox has over forty years experience in oil and gas in a wide range of roles with Majors and Independents. For the last two decades he has been leading complex multi-asset and multi-country businesses including as CEO of Spirit Energy, Interim CEO at Capricorn Energy and Chairman of Kellas Midstream. Chris has experience as a non-executive director of both private equity and publicly listed companies, most recently with Nostrum Oil and Gas. Chris holds a BSc in Petroleum Engineering from Imperial College, London.

[davethehorse] 13/5/2024 08:40

Have bought in this morning at 181p ish, gl holders from here...

[theinquisitiveone] 10/5/2024 16:38

Hi

Can anyone tell me if SQZ qualify for Business Property Relief(BPR) against Inheritance Tax because of their AIM listing?

Thanks

[undervaluedassets] 09/5/2024 16:23

Yup.. Investors are pretty stupid really aren't they.. Especlally on AIM,

Valuations roughly match operating profits on the FTSE 100 by rank ... Roughly that is.

[weemonkey] 09/5/2024 16:19

Here is something interesting to chew on

SQZ is the 2nd most profitable company (proper profits that is ..operating profits) on the AIM100.

JET2 is at number 1

And even after the outlandish 75% tax take SQZ is in 4th position by profitability on the AIM 100 table

yet it ranks 22nd by valuation on the AIM100.

You could not make it up really could you..

[wallywoo] 09/5/2024 15:50

Highest daily volume for 2 years so far today. Should spark some interest here, imho

[nigelpm] 09/5/2024 15:21

I still think there will be consolidation in the sector - tie up ITH, ENQ, SQZ and then HBR swallows the lot up. Combine all the tax losses and someone makes a fortune.

[hunter154] 09/5/2024 14:46

EBITDA multiple below 2 for 2023. Fy24 forecast £514m on sharepad. Todays mcap £694m.
Yes tax is high but fcf for 2024 is £125m.

If you cant see the value here then go and buy NVIDIA.

[steelwatch] 09/5/2024 13:36

Don't follow Serica much these days, but, just checking on wherabouts of a jack-up rig expected Q2/Q3 for a Southern North Sea exploration well I'm interested in and find it is currently working at Erskine. Probably a workover of some sort.



edit: extract from the operator's Annual Report 30/04/24 - "Production efficiency from the Erskine field averaged 76%, (excluding planned TAR losses), as a result of an extended shutdown on the host Lomond platform which provides fluid processing and an export route. A MODU-based intervention is scheduled for 2024 to reinstate production from the W1 well in 2024".

[stemis] 09/5/2024 12:55

Also ignoring tailwind tax losses etc.

Why would you ignore tax losses?

[swanvesta] 09/5/2024 12:38

And surely decom will be paid from pre-tax cash flow, not from post-tax income?

[mickinvest] 09/5/2024 12:17

"IF they can get around £300m pre-tax profit..."


Serious answers only please seeing Labour have not suggested lowering the offset to zero!

[loglorry1] 09/5/2024 11:58

"IF they can get around £300m pre-tax profit..."

Let's assume they can and they pay a full 78% tax rate on it after labour changes and they can't offset investment. Also ignoring tailwind tax losses etc.

That's 66m post tax which seems pretty rubbish given the market cap and the decomm remaining to pay for.

If the UK Gov has decided to wind up the North Sea and focus on renewables as it seems then I don't see much future here. And yes I am a shareholder.

[croasdalelfc] 09/5/2024 11:23

3m transfer or sell?

[undervaluedassets] 09/5/2024 11:22

Well they like the Harbour results.. which is kind of in the same boat as us...

You would think that we would see a read across as we are ploughing the same furrow as twere.

Their directors have been buying (as have ours of course).

Meanwhile.. It is the private investor who - it seems to me - has his tail between his legs about north sea gas.. especially on this board.

[nigelpm] 09/5/2024 08:09

Looks like it Croas - that's exactly why you have a buyback in place.

[croasdalelfc] 09/5/2024 07:07

Is someone offloading into the buyback - 381000 bought yesterday in one transaction . There have been several at 100k over the last few days

[mickinvest] 08/5/2024 16:14

IF they can get around £300m pre-tax profit, the question is what tax they will pay on that taking into account an estimated capex of £180m and Tailwind tax losses?

They'll probably need gas price to bump into at least 80p average and oil $80+ before hedges but I'd guess EPS will be far higher than the 29p in recent results. It would also see net cash increasing again with the lower taxation. You then have the bogeyman of Sir Keir threatening to reduce the capex tax deduction going forward so difficult to make forward projections but would be good to see someone give it a go?

[return_of_the_apeman] 08/5/2024 14:59

What are these "lots of investors" reasons for thinking this is a value trap?

SQZ paid out 23p in dividends during 2023 which were covered 3.27 times, what do you think the coverage is forecast to be this year?

Tia

[wallywoo] 08/5/2024 11:35

With such a high dividend (14p around 7% of the share price), it makes sense to buy as many shares as possible before these go XD on the 27th June. A £15m buyback and a average share price of 190p, works out about right at an average 200k shares a day. It's interesting to guess what the share price will be once this goes XD. Lots in investors currently thinking this is a value trap.

[bountyhunter] 08/5/2024 07:39

on 7 May 2024, it purchased 381,119 ordinary shares

not so small with shares being repurchased daily

I guess there are some parameters being applied to the repurchased shares behind the varying amounts.

[sawney] 08/5/2024 07:21

So looking at today's RNS...why are they buying in such small random amounts...?

[mrscruff] 07/5/2024 20:57

The answer is to cut the dividend to provide a buffer for M&A and buybacks. The windfall TAX is forever and we and the company need to adjust to this environment.