Serica Energy Plc ('Serica') notes the announcement by EnQuest Plc ('EnQuest') confirming that EnQuest does not intend to make a firm offer for Serica. As a result of the announcement, EnQuest is bound by the restrictions contained in Rule 2.8 of the City Code on Takeovers and Mergers.
While there would have been strategic and financial benefits to the combination, in light of current market volatility an agreement on terms that would have been in the best interests of shareholders was not possible at this time.
The Board remains very confident in Serica's standalone ability to generate significant cash flow and deliver shareholder value and highly competitive shareholder returns from its balanced portfolio of oil and gas assets. Delivering sustainable operational improvement remains paramount. In parallel, the Company continues to pursue its clear growth strategy, as detailed in the 2024 full-year results, progressing numerous organic growth opportunities across the portfolio as well as actively screening a number of cash-generative and value accretive M&A opportunities in both the UK North Sea and other geographies.
Hi John, Perhaps we’ll see another sort of deal at some point. Enquest appears to be growing its SE Asia operation with its acquisition from HBR. Perhaps it will dispose of its UK assets to Serica.
This weekend’s local election result and the forthcoming cabinet reshuffle might also be reasons to feel positive for Serica sooner or later.
Seems to me slogans in the US election might get a 2nd life over the pond at some point….
Meanwhile there’s plenty for SQZ to go after in 2025 and beyond, it wasn’t as though it needed that deal.
This is very true. As you say SQZ can focus operationally on what they have rather than a big integration project.
UK macro trends are also interesting to see how it now plays out. Amazing to read in HBR report that 78% tax companies can throw out some serious cash. Does seem a waste to me that UK buys in LNG rather than use what is in the north sea first (or now on land with the big deposit found in Gainsborough!)
I will be building a SQZ stake in my dividend portfolio. DEC sp also showing signs of life...maybe the buy backs starting to have an effect. Can see now below 80m in issue.
The North Sea is currently offering an ocean of geopolitical stability between the Orange man baby and warlord Vlad. At least, I hope that’s how Europe sees it
The elephant in the room is for just how long the govt can keep up the net zero spending. Will the bond markets let them? They may be forced to conclude that home produced gas isn't such a bad thing after all and stop hammering N Sea O&G producers. True, this is a long shot.
Seems a shame!
Serica Energy Plc ('Serica') notes the announcement by EnQuest Plc ('EnQuest') confirming that EnQuest does not intend to make a firm offer for Serica. As a result of the announcement, EnQuest is bound by the restrictions contained in Rule 2.8 of the City Code on Takeovers and Mergers.
While there would have been strategic and financial benefits to the combination, in light of current market volatility an agreement on terms that would have been in the best interests of shareholders was not possible at this time.
The Board remains very confident in Serica's standalone ability to generate significant cash flow and deliver shareholder value and highly competitive shareholder returns from its balanced portfolio of oil and gas assets. Delivering sustainable operational improvement remains paramount. In parallel, the Company continues to pursue its clear growth strategy, as detailed in the 2024 full-year results, progressing numerous organic growth opportunities across the portfolio as well as actively screening a number of cash-generative and value accretive M&A opportunities in both the UK North Sea and other geographies.
Hi John, Perhaps we’ll see another sort of deal at some point. Enquest appears to be growing its SE Asia operation with its acquisition from HBR. Perhaps it will dispose of its UK assets to Serica.
This weekend’s local election result and the forthcoming cabinet reshuffle might also be reasons to feel positive for Serica sooner or later.
Seems to me slogans in the US election might get a 2nd life over the pond at some point….
Meanwhile there’s plenty for SQZ to go after in 2025 and beyond, it wasn’t as though it needed that deal.
OB
This is very true. As you say SQZ can focus operationally on what they have rather than a big integration project.
UK macro trends are also interesting to see how it now plays out. Amazing to read in HBR report that 78% tax companies can throw out some serious cash. Does seem a waste to me that UK buys in LNG rather than use what is in the north sea first (or now on land with the big deposit found in Gainsborough!)
I will be building a SQZ stake in my dividend portfolio. DEC sp also showing signs of life...maybe the buy backs starting to have an effect. Can see now below 80m in issue.
The North Sea is currently offering an ocean of geopolitical stability between the Orange man baby and warlord Vlad. At least, I hope that’s how Europe sees it
And who’d have predicted that!
Not Ed Milli.
OB
The elephant in the room is for just how long the govt can keep up the net zero spending. Will the bond markets let them? They may be forced to conclude that home produced gas isn't such a bad thing after all and stop hammering N Sea O&G producers. True, this is a long shot.
In the meantime, that yield is fantastic.