Upstream Share Discussion Threads

[master rsi] 11/4/2024 12:25

How the UPS are performing during last month

[master rsi] 11/4/2024 12:09

How the UPS are performing today

[master rsi] 11/4/2024 09:51

RBG 1.45p +0.25p / Revolution Bars proposes restructuring, eyes £12.5m equity raise
(Sharecast News) - Bar and gastro pub operator Revolution Bars has proposed a restructuring of the group, which would involve the shuttering of several sites, rent reductions, and an equity raise of up to £12.5m featuring new and existing investors.

Revolution Bars said its restructuring plan would affect Revolution Bars Ltd and would see it exit the leases of 18 loss-making sites and impose a rent reduction on a further 14 sites, which the company said would enable it to return to profitability at a sustainable level.

To fund its planned restructuring efforts and provide additional working capital, Revolution proposed a fundraising to raise up to £12.5m - including £3.0m from Luke Johnson, who will take over as chairman if the restructuring gets sanctioned. Additionally, Revolution also launched a formal sale process to explore whether a sale of the shares in the company would provide a more beneficial outcome than the restructuring.

In terms of earnings, Revolution achieved year-on-year sales growth of 8.3% in the six months ended 30 December and a pre-tax profit of £3.1m, after an exceptional gain on disposal of £3.9m relating to the exit from certain leasehold properties.

Group like-for-like sales for the four weeks to 31 December were up 9.0%, the company's best festive period since 2019. Like-for-like sales for the first half, including New Year's Eve, were down 2.8%.

"Following an ongoing period of softer trade post-Christmas, coupled with significant cost pressures on the group and industry, today we have announced that the board has concluded that it is in the best interests of the group for Revolution Bars Limited to propose a restructuring plan, alongside a number of additional measures to be implemented across the Group to re-shape the business, as well as exploring, in parallel, a formal sale process in order to deliver the best outcome for stakeholders," said Revolution.

"In order to fund a potential restructuring plan and provide working capital for the group, the board has concluded that the group needs to raise additional equity capital from new and existing investors through a fundraising."
------------------------------
Ex-entitlement Date for the Open Offer
11 April

Publication and despatch of the Circular, the form of proxy and, to Qualifying Non-CREST Shareholders, the Application Form
15 April

Basic Entitlements and Excess CREST Open Offer Entitlements credited to CREST stock accounts of Qualifying CREST Shareholders
8.00 a.m. on 16 April

Latest time for depositing Basic Entitlements and Excess CREST Open Offer Entitlements into CREST
3.00 p.m. on 25 April

Latest time and date for splitting Application Forms (to satisfy bona fide market claims only)
3.00 p.m. on 26 April

Latest time and date for receipt of completed Application Forms and payment in full under the Open Offer or settlement of relevant CREST instructions (as appropriate
11.00 a.m. on 30 Apri

[master rsi] 11/4/2024 09:35

MARKET REPORT
LONDON MARKET OPEN: European markets mixed ahead of ECB decision

(Alliance News) - European equities lacked direction early Thursday morning, ahead of an interest rate decision from the European Central Bank this afternoon.

The FTSE 100 index opened up 2.10 points at 7,963.31. The FTSE 250 was down 4.02 points at 19,797.73, and the AIM All-Share was up 1.13 points, 0.2%, at 756.32.

The Cboe UK 100 was up 0.1% at 796.00, the Cboe UK 250 was up 0.1% at 17,216.17, and the Cboe Small Companies wasdown 0.2% at 14,720.34.

In European equities on Thursday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was down slightly.

Thursday's economic calendar has an interest rate decision from the European Central Bank. It is due out at 1315 BST and markets are widely expecting the central bank to keep rates unchanged.

Investors will be eyeing the press conference which will follow, in hopes of some hints on the ECB's expected timing of rate cuts.

Across the Atlantic, hopes of a June rate cut were almost crushed on Wednesday, sending stocks in New York lower.

In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average down 1.1%, the S&P 500 down 1.0% and the Nasdaq Composite down 0.8%.

Inflation data from the US on Wednesday came in stronger than expected, forcing the market to reassess the timing of an easing in monetary policy.

According to the Bureau of Labor Statistics, the year-on-year rate of US consumer price inflation picked up to 3.5% last month, from 3.2% in February, taking it further above the Fed's 2% inflation target.

The rate of consumer price inflation had been expected to pick up to just 3.4%, according to FXStreet cited consensus.

There were also minutes from the US Federal Reserve to digest on Wednesday.

Federal Reserve officials said they required more confidence that inflation was moving towards its 2% target before cuts to interest rates could be considered, minutes from the March Federal Open Market Committee meeting showed.

"Wednesday's inflation report dealt a significant blow to the Federal Reserve's aspirations for a soft landing as, once again, inflation outpaced expectations," said SPI Asset Management's Stephen Innes.

"Hotter-than-expected prices force Fed officials back into a cautious stance, where they must await further clarity on inflation dynamics and tangible signs of economic deceleration before even entertaining a rate cut before Q4."

Still to come on Thursday, there is a producer price reading from the US. It is expected to deliver more data which will dampen hopes of interest rate cuts.

According to FXStreet, the US producer price index is expected to come in at 2.2% in March, picking up from 1.6% in February.

The pound was quoted at USD1.2539 early on Thursday in London, down compared to USD1.2546 at the equities close on Wednesday. The euro stood at USD1.0737, lower against USD1.0743. Against the yen, the dollar was trading at JPY153.10, up compared to JPY152.88.

In the FTSE 100, AstraZeneca rose 1.0%.

The pharmaceutical company said it plans to increase its dividend for 2024 by 7% to USD3.10 per share, from USD2.90 a year prior.

Chair Michel Demare said: "This uplift is in line with our progressive dividend policy, which remains unchanged, and reflects the continuing strength of AstraZeneca's investment proposition for shareholders."

Kingfisher jumped 3.8%, after HSBC raised the retailers broker rating to 'buy'.

The bank also raised Smiths Group's rating to 'buy'. The engineering company's stock rose by 2.1%.

In the FTSE 250, Darktrace rose by 8.3%, thanks to a jump in its annual guidance.

The Cambridge, England-based cybersecurity company said at constant currency rates, annualised recurring revenue at March 31 was USD731.1 million, representing growth of 24% from USD583.6 million a year ago. Revenue in its third quarter jumped 24% to USD176.1 million from USD139.2 million a year prior.

Looking ahead, Darktrace narrowed its guidance range for constant currency ARR, and now expects growth of between 22.3% and 23.0%, from 21.5% to 23.0% previously.

The firm also raised its expectations for year-on-revenue growth and adjusted Ebitda margin, and now expects revenue growth of at least 25.5%, up from its previous 23.5% and 25.0% range.

On London's AIM, Lok'n Store shares rose by 16%.

Brussels-based Shurgard, the largest developer, owner and operator of self-storage facilities in Europe, said it has reached an agreement to buy the self storage provider for GBP378 million.

Under the agreement, Lok'n Store shareholders will receive 1,110 pence in cash per share. This represents a 6% premium to the closing price of 958p on Wednesday.

Chair Andrew Jacobs said: "Lok'nStore's board believes the offer represents significant value for Lok'nStore's shareholders, recognising the quality of Lok'nStore's real estate portfolio and operational strength. Over the years Lok'nStore has built a unique portfolio of purpose-built self-storage assets. We believe that integrating Lok'nStore's assets and operations into Shurgard is highly complementary considering Lok'nStore's asset locations and positioning in its markets.

In Asia on Thursday, the Nikkei 225 index in Tokyo was down 0.4%. In China, the Shanghai Composite was up 0.2%, while the Hang Seng index in Hong Kong was down 0.2%. The S&P/ASX 200 in Sydney closed down 0.4%

Brent oil was quoted at USD90.47 a barrel early in London on Thursday, up from USD89.31 late Wednesday. Gold was quoted at USD2,338.60 an ounce, higher against USD2,334.91.

Still to come on Thursday's economic calendar, there is a producer price reading from the US, as well as the weekly initial jobless claims.

[master rsi] 11/4/2024 09:18

Lok'n Store agrees GBP378 million takeover from Belgium's Shurgard

(Alliance News) - Lok'n Store Group PLC on Thursday accepted a takeover approach from Shurgard Self Storage Ltd that values the business at GBP378 million.

The cash bid is worth 1,110 pence per Lok'n Store share, a 16% premium to the closing price of 958p on Wednesday, and 2.3% above its all-time closing high of 1,085p in January 2022.

Shares in Lok'n Store, a London-headquartered self-storage provider, were up 17% to 1,125.00p in early exchanges in London on Thursday for a GBP370.1 million market capitalisation.

Brussels-based Shurgard, the largest developer, owner and operator of self-storage facilities in Europe, said the deal represented an "attractive opportunity" to accelerate its growth strategy and create value for shareholders.

Lok'n Store said it considered the terms of the offer "fair and reasonable", and recommended shareholders accept the bid. Shurgard said that, as of Wednesday, it has received irrevocable undertakings to vote in favour of the deal for about 19% of Lok'nStore's shares.

The deal is expected to be effected by means of a court-sanctioned scheme of arrangement and is likely to complete in July.

Lok'n Store Chair Andrew Jacobs said: "Lok'nStore's board believes the offer represents significant value for Lok'nStore's shareholders, recognising the quality of Lok'nStore's real estate portfolio and operational strength."

[master rsi] 11/4/2024 09:02

Alpha Financial expects annual earnings to fall despite better trading

(Alliance News) - Alpha Financial Markets Consulting PLC on Thursday said trading improved through the fourth quarter of its financial year despite a slower than planned January.

Shares in Alpha Financial were up 6.6% to 332.50 pence each in London on Thursday morning.

For its financial year ended March 31, the Paris-based asset and wealth management and insurance consultancy said it continues to expect to deliver net fee income growth of around 3% against the prior year.

It also expects adjusted earnings before interest, tax, depreciation and amortisation of GBP42 million to GBP43 million, down from GBP46.6 million in financial 2023, but at a slightly improved margin on the first half.

As previously reported, it said the global consulting market has experienced a "more competitive environment" during the current financial year and the supply and demand dynamics continue to rebalance.

Chief Executive Officer Luc Baque said: "As noted last in February, challenging market conditions remain, and the market environment continues to rebalance supply & demand. However, it is encouraging to see some improvement in market conditions and increased sales wins in recent months and going into [financial 2025]".

Alpha Financial will publish its full-year results on June 20.

[master rsi] 11/4/2024 08:46

BTC- Bitcoin

Continues with its volatility and is moving toward $71,000

[master rsi] 11/4/2024 08:20

FTSE

It shows up 2 but the reading is down 1

[master rsi] 10/4/2024 23:36

British Bulls has joined the list tonight with a BUY

KEFI 0.575 +0.009
Signal Update
Our system’s recommendation today is to BUY. The BULLISH ONE WHITE SOLDIER pattern finally received a confirmation because the prices crossed above the confirmation level which was at 0.566.

Market Outlook
The bulls have strong evidence on their side and this evidence prompts us to make a bullish bet. Today’s candlestick has a white body and its close is above the confirmation level. The bullish pattern that was previously identified is finally confirmed and a BUY signal is generated. It is probably the right time to be part of this boost and bullish market sentiment. The market is telling you about a new profit. Do not miss this chance.

[master rsi] 10/4/2024 22:03

MARKET REPORT
LONDON MARKET CLOSE: New York stocks tumble as US data dashes cut hope

(Alliance News) - European stocks closed off session highs on Wednesday, while equities in New York struggled, after a robust US inflation reading which potentially pushed the first Federal Reserve rate cut of the cycle further into the future.

The FTSE 100 index ended up 26.42 points, 0.3%, at 7,961.21. It had traded a touch below the 8,000 point mark shortly before the US inflation reading, however.

The FTSE 250 closed up 38.40 points, 0.2%, at 19,801.75, and the AIM All-Share rose 4.21 points, 0.6%, at 755.19.

The Cboe UK 100 ended up 0.4% at 795.63, the Cboe UK 250 ended marginally lower at 17,201.76, and the Cboe Small Companies fell 0.1% to 14,745.87.

In European equities on Wednesday, the CAC 40 in Paris fell 0.1%, while the DAX 40 in Frankfurt edged up 0.1%.

The Dow Jones Industrial Average was 1.2% lower at the time of the European equities close. Both the S&P 500 and Nasdaq Composite slumped 1.1%.

The pound was quoted at USD1.2546 late Wednesday afternoon in London, down sharply from USD1.2672 at the equities close on Tuesday. The euro stood at USD1.0743, slumping from USD1.0856. Against the yen, the dollar was trading at JPY152.88, surging from JPY151.65.

According to the Bureau of Labor Statistics, the year-on-year rate of US consumer price inflation picked up to 3.5% last month, from 3.2% in February, taking it further above the Fed's 2% inflation target.

The rate of consumer price inflation had been expected to pick up to just 3.4%, according to FXStreet cited consensus.

The annual core rate of inflation, so excluding food and energy, was 3.8% in March, where it had stood in February. It had been expected to ease to 3.7%, according to FXStreet.

Kathleen Brooks, research director at XTB said the immediate aftermath of the CPI report "has been a bloodbath."

"The market has once again recalibrated to US rate cut expectations, and the verdict is that that first rate cut may not come until November. The market is now pricing in less than 2 rate cuts from the Fed for this year. What a turn around, only a few months ago the market was expecting 6 cuts."

At 1900 BST on Wednesday, minutes from the Fed's last meeting are released. The US central bank late last month maintained interest rates at between 5.25% and 5.50%.

During that meeting, its summary of economic projections were released. The dot-plot chart still suggested three rate cuts could be in the offing this year.

However, confidence in three rate cuts from the Fed, beginning in June, is being tested.

According to the CME FedWatch Tool, there is a 79% chance the Fed leaves rates unmoved in June. This time last week, there was more than a 60% chance that it would cut at that meeting.

Its next decision is on May 1.

In London, Tesco shares rose 3.3%, ending the best large-cap performer.

The Hertfordshire-based supermarket chain said pretax profit surged to GBP2.29 billion in the financial year ended February 24, from GBP882 million a year prior.

Revenue climbed 4.4% to GBP68.19 billion from GBP65.32 billion.

The company announced a final dividend of 8.25 pence per share, bringing the total to 12.10p, up 11% from 10.90p paid for financial 2023.

On the back of the results, Tesco announced a new GBP1.0 billion share buyback programme to be conducted over the next 12 months, including GBP250 million funded by the special dividend paid to the group by Tesco Bank in August 2023.

Ocado had spent most of the day higher in a positive read across, before sinking as the red-hot US data hurt sentiment. Ocado shares fell 1.9% on Wednesday.

Stocks in the rate sensitive property and housebuilding sectors also fell. Barratt Developments fell 1.2% and Segro gave back 1.4%.

Elsewhere in London, XP Power surged 8.0%. The maker of power control systems maintained its yearly expectations and said it expects trading to improve as demand in its semiconductor equipment unit starts to pick up.

XP Power said revenue in the first-quarter to March 31 fell 17% on-year to GBP64.6 million. It declined 15% at constant currency. Order intake was 29% lower at GBP43.7 million.

The company said on Wednesday: "As expected, revenue in Q2 is likely to be slightly lower than Q1 due to ongoing customer destocking, and we continue to expect trading to improve during 2024 as channel stock levels reach equilibrium and as demand for Semiconductor Manufacturing Equipment begins to increase. Order intake in Q2 will provide greater clarity on the timing and trajectory of this improvement.

"We are confident that our market positions remain strong and that the group is well positioned to prosper as our key markets resume their trajectory of healthy long-term growth."

Chamberlin tumbled 17%, after results in its most recent quarter came in below expectations.

The specialist castings and engineering group based in Walsall, West Midlands issued a trading update on the three-month period ended February 29. The company's financial year runs to May 31.

Underlying demand across Chamberlin during its financial third quarter was below management's expectations.

"Schedules over the period were lower than previously forecast by our customers and were further impacted by delays with the startup of certain new programs," the company said.

It noted that lower sales during the third quarter of financial 2024 have hurt profit and working capital.

Brent oil was quoted at USD89.31 a barrel late in London on Wednesday, down from USD89.82 late Tuesday. Gold was quoted at USD2,334.91 an ounce, down against USD2,347.44.

Thursday's economic calendar has an inflation reading from China overnight, before the Europe Central Bank interest rate decision at 1315 BST.

In the local corporate diary, kitchen and bathroom products seller Norcos releases a trading statement.

[master rsi] 10/4/2024 21:41

Revolution Bars looks to raise funds as reviews future options
(Alliance News) - Revolution Bars Group PLC on Wednesday announced a GBP12.5 million fund raise amid a restructuring plan that could see the business sold.

The Manchester-based bar group, which operates the brands Revolution and Revolucion de Cuba plans to raise GBP10.5 million via a firm placing and subscription at 1 pence per share and GBP2.0 million via a placing & open offer at the same price.

Without the additional funding, and cost savings delivered through a proposed restructuring plan, Revolution Bars said it would face liquidity pressures from the first quarter of 2025 onwards.

In addition, the company said it had launched a formal sale process to see whether a sale of the company would provide a more beneficial outcome for stakeholders than the restructuring.

Revolution Bars said it was also looking at a sale of one or more subsidiaries.

Revolution Bars also announced cornerstone investments of GBP9.5 million: GBP3.0 million from Luke Johnson, GBP3.0 million from Robus and GBP3.5 million from three key existing shareholders.

Proceeds from the fundraising will be used to fund the implementation of the restructuring, which will primarily impact the Revolution branded sites, provide additional working capital and is expected to enable the company to recommence a site refurbishment programme from 2026.

The proposed restructuring is expected to enable significant adjusted earnings before interest, tax, depreciation and amortisation improvement, put at GBP3.8 million in the first year, through site rationalisation, rent reductions and other central cost savings.

In addition to the central cost savings identified, which equate to GBP900,000 in 2025, the company intends to identify up to a further GBP2.0 million of annual cost savings.

Luke Johnson is expected to join the board as a non-executive director with a view to him being proposed to take the role of chair at the company's annual general meeting in 2024.

Further, Revolution Bars said its lender has indicated its willingness to provide around GBP6.9 million of support prior to and as part of the restructuring.

This includes writing off GBP4.0 million of existing debt, deferral of interest payments for 12 months, worth GBP2.2 million, and providing GBP0.7 million of additional working capital.

In addition, Revolution Bars reported results for the 26 weeks to December 30.

The firm reported a pretax profit of GBP3.1 million, swinging from a pretax loss of GBP0.1 million the year prior. Sales climbed to GBP82.3 million from GBP76.0 million.

The profit included a GBP3.9 million exceptional gain on the disposal of a property.

"Despite a strong festive trading period, the macroeconomic trading environment continued to provide a challenging trading environment," Revolution Bars said.

Chief Executive Officer Rob Pitcher said: "The first half of FY24 has seen continued challenges with the cost-of-living crisis disproportionately impacting particularly the discretionary expenditure of our young Revolution brand guests. Revolucion de Cuba and Peach have been less impacted as the guest profile is more affluent, and both brands enjoyed very strong festive trading, and Revolución de Cuba, in particular, has shown excellent trading when compared against the wider Bars market."

Shares in Revolution Bars are suspended at 1.15p each in London.

[master rsi] 10/4/2024 21:24

DOW

Finishing 422 points down

[master rsi] 10/4/2024 17:10

By BEVIS YEO - STOCKHEAD - 8:14AM APRIL 10, 2024

Helium is a famously scarce yet highly valued commodity that is irreplaceable for many high tech applications.

It is used in semiconductor manufacturing, nuclear energy production, solar panels, optic fibre and the cooling of superconducting magnets in MRI scanning machines.

Demand is also growing with the market expected to grow from an estimated $US5 billion in 2023 to more than $US8 billion in 2030.

Speaking to Stockhead, Noble Helium (ASX:NHE) managing director Shuan Scott said the helium market was dynamic at the moment, with important structural changes under way.

[master rsi] 10/4/2024 16:57

HOUSE builders have been on the way down lately but for the last couple of days are falling faster as their support has been broken

Barrat Dev. - BDEV

Taylor Wimpey -TW.

[master rsi] 10/4/2024 16:47

CAU 51.50p (11.50 / 28.75%%) - Centaur Media soars on takeover approach from Dutch PE firm

(Sharecast News) - Shares in Centaur Media soared on Wednesday afternoon after the publishing, events and marketing company confirmed speculation about a takeover approach from a Dutch private equity firm.

Centaur, which runs B2B print magazines such as Marketing Week and digital platforms like Econsultancy, announced in a regulatory filing that it had received a "highly preliminary expression of interest" from Waterland Private Equity Investments for the entire issued share capital of the company.

No financial details were disclosed in the statement.

"Shareholders are advised that there can be no certainty that any offer will be made, nor as to the terms of any offer," Centaur said.

"The board remains confident in the company's growth strategy and its ability to maintain a competitive edge within the markets it operates."

Waterland, which is based in Bussum, North Holland, now has until the end of play on 8 May to give a firm intention to make an offer, under UK takeover rules.

[master rsi] 10/4/2024 16:35

How the UPS are performing during last month

[master rsi] 10/4/2024 16:16

How the UPS are performing today

[master rsi] 10/4/2024 15:27

Sector movers: Miners hit by U.S. dollar strength after 'hot' CPI
(Sharecast News) - A stronger-than-expected reading on the U.S. Consumer Price Index for March propelled the Greenback higher, as traders priced out the possibility of an interest rate cut at the Federal Reserve's June policy meeting.

According to the U.S. Department of Labor, headline and core consumer prices in the States both rose by 0.4% month-on-month in March.

Economists had penciled-in increases of 0.3% for both measures.

Dollar strength hit metals' prices, in turn taking miners' shares down with them.

As of 1457 BST, the U.S. dollar index was up by 0.85% to 105.04 and at its session highs.

In parallel, the yield on the policy-sensitive two-year U.S. Treasury note had leapt 21 basis points higher to 4.962%.

Gold futures on COMEX headed in the opposite direction, erasing 0.61% to $2,348.0/oz., while copper was down by 0.63% to $4.2585/ib..

Interest rate sensitive REITS were also unloved.

Aerospace and Defence names were again seen profit-taking.

Shares of HSBC on the other hand appeared to be taking the prospect of higher rates in the States in their stride, as they were so often wont to do.

That was keeping the sector gauge in the black.

Boosting the lender's shares too, analysts at Citi had reiterated their 'buy' recommendation and 810p target price.

Top performing sectors so far today

Medical Equipment and Services 11,167.32 +1.51%

Leisure Goods 25,031.84 +1.11%

Personal Care, Drug and Grocery Stores 3,783.19 +1.05%

Banks 3,963.34 +0.92%

Automobiles & Parts 1,252.73 +0.83%

Bottom performing sectors so far today

Precious Metals and Mining 10,297.37 -2.22%

Industrial Metals & Mining 6,602.27 -2.10%

Real Estate Investment Trusts 2,222.44 -1.55%

Aerospace and Defence 10,404.10 -1.23%

Life Insurance 5,879.04 -1.11%

[master rsi] 10/4/2024 14:54

Biggest North Sea oil find in decades to be drilled for first time - The Telegraph 10 Apr '24
AUK energy company is to start drilling at the biggest oil field discovered in the North Sea in at least 20 years in spite of a net zero crackdown on the industry.

EnQuest plans to bring two fields onstream which have the potential to produce 500 million barrels of crude oil over coming decades.

The sites, which neighbour Kraken oil and gas field, 80 miles east of Shetland, will reignite the political battle over the North Sea’s future in which Labour has threatened to block new production citing environmental concerns.

Their planned intervention has prompted warnings from energy companies that the UK risks cutting off its own energy supplies before it has a replacement.

The resulting “Kraken cluster” will have combined reserves larger than either Rosebank or Cambo, the controversial fields west of Shetland which attracted a backlash from environmental campaigners. Cambo was discovered in 2002 with discovery drilling at Rosebank taking place two years after.

Rosebank, which is predicted to yield 350 million barrels of oil, won a production licence last September after months of political wrangling. Cambo, with 170 million barrels of oil, has been in limbo since 2021 when energy giant Shell pulled out of the project because of the green backlash.
Related video: Oil Market Is In An Escalatory Risk Environment (Bloomberg)
Contextualize this for me. We don't know how the proxies

It comes as Labour plots a £11bn raid on the UK’s oil and gas industry as part of proposals to increase and extend the windfall tax, with the funds invested in “clean power to cut bills for families”.

The party has also proposed to ban new oil and gas drilling licences.

Energy companies are under intense pressure to cut back on oil and gas production and boost investment in renewables as governments race to meet net zero targets.

Wael Sawan, the chief executive of Shell, warned last month that the world is at risk of energy shortages unless more money is invested in drilling for oil and gas.

EnQuest’s two new sites, Bressay and Bentley, are so close to Kraken that they can all be connected to the same production system, based around the giant ship already serving as a floating oil platform for the Kraken field.

EnQuest said Bressay was “one of the largest undeveloped oil fields in the UK continental shelf” with so-called oil-in-place estimated to be between 600 million and one billion barrels.

Oil-in-place measures the total oil in a reservoir but the amount extracted from Bressay is likely to be around 200-300 million barrels.

Bentley, the second nearby field, is thought to be even larger, capable of producing more than 300 million barrels, putting it on a par with Rosebank.

Those amounts are in addition to the 137 million barrels already being extracted from the original Kraken field. It means the cluster could produce more than 700 million barrels of oil.

A spokesman for Offshore Energies UK, the industry trade body, said: “Continued investment in UK energy opportunities, including oil projects, is necessary to ensure UK security of energy supply, support hundreds of thousands of jobs and contribute to the UK economy.”

However, it is thought that almost all that oil is likely to be exported, partly because the Kraken field is not linked to a pipeline meaning its oil is likely to be collected by ship and taken to whichever refineries buy it.

It means the main benefit for the UK will come from any taxes paid by EnQuest. The windfall taxes imposed by Jeremy Hunt, the Chancellor, currently stand at 75pc of profits.

Craig Baxter, of EnQuest, said: “EnQuest continues to explore ways to progress the respective development of the Bressay and Bentley fields.

“EnQuest is committed to supporting the energy transition in the UK and any future field development will be conducted in line with EnQuest’s commitment to reaching net zero scope 1 and 2 emissions by 2040.”

Mr Baxter added that the gas initially extracted from the Bressay field would be used to power the Kraken operations, replacing the diesel fuels currently used and so cutting emissions.

He said: “This would significantly reduce Kraken’s emissions, by displacing diesel that is currently being used to power field operations.”

A Department for Energy Security and Net Zero spokesman said: “As data from the independent Climate Change Committee shows, we’ll still need oil and gas for decades to come, even when we reach net zero in 2050.

“That’s why we’re backing the UK’s oil and gas industry with annual licensing rounds, supporting around 200,000 jobs, generating billions in tax revenues to fund public services and support with the cost of living and retaining the skills and expertise needed for the green transition.

“Even with new oil and gas licences, we have been clear there will be a managed decline in UK production, projected at 7pc per year, and they will not make us a net exporter or increase carbon emissions above our legally binding carbon budgets.”

[master rsi] 10/4/2024 14:34

DOW

Opening lower to 437 points in the red. after higher inflation