Please can you add Kistos PLC, they have recently IPO’d on the LSE and shown steady growth since inception
Has there been any update on this being added? Bought in at IPO on a different broker but hoped to transfer to Freetrade once available. Raised a request a couple of months ago also via the form.
This company aims to create value for its investors by acquiring and managing businesses in the energy sector.
Looks cheap down here. Decent write up by Malcy.
The gas storage they bought from EDF also … wow… up to 11% of the UK’s flexible capacity …
Malcy comments;
Kistos is looking in good shape right now given the deck it has been given by the UK Government and its fiscal policy that is driving away investors and killing off the domestic oil & gas industry. But as this update shows, Kistos is bearing up and with ongoing production sitting at around 8/- b/d and looking likely to be on a decent long term rising trend, particularly with Balder coming on stream later this year.
The company has made the debt, cash and near cash very clear and it’s very positive. As seen above in the RNS Kistos has $144m of cash after receipts of $84m in December for the tax rebate and will receive another of $65m in December 2025 so pro forma net debt of $45m with undrawn cash facilities of a further $20m in place leaving the balance sheet ‘simple and strong’.
With the Balder hybrid debt leaving the picture we know that production from the development will commence later this year and it leaves the company well placed, Balder Future leads to Phase V and there is more exploration behind that for significant potential upside.
Elsewhere the substantial amount of growth opportunities are not limited to Norway, the GLA is a good gas development and with the arrival of Prax, Glendronach should move up the pecking order. I remain very optimistic about the potential for the UK gas storage business and of course Kistos is always assessing acquisition opportunities for ‘value accretive expansion’ and so I remain as confident as ever in the high quality management team to deliver for shareholders who we must remember the Chairman and the Board are significant stakeholders…
Strategic Value of the Gas Storage Business
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The acquisition adds flexibility to Kistos’ portfolio, allowing them to store gas when prices drop and sell when profitable.
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The asset is outside the ring-fence for taxation, meaning it’s taxed at corporation tax rates, offering financial advantages.
“Kistos said Hill Top accounts for 3.1% of the UK’s total available onshore storage capacity and up to 11% of the UK’s flexible daily capacity if called upon.”
