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Profit from the energy bill shock with Serica

North Sea gas producer's soaring profits could offer some solace as home energy costs spike
January 13, 2022

Putting on a Martin Lewis-esque Money-Saving-Expert hat, it’s clear UK residents need to find a way to hedge against hefty energy price increases. The Resolution Foundation think tank forecasts each household will have to cover £1,000 or more as a result of higher energy costs and National Insurance contributions in 2022.

Tip style
Value
Risk rating
High
Timescale
Medium Term
Bull points
  • Earnings boosted by gas prices
  • 100 per cent of cash flow from keyfields now going to Serica
  • New fields just come on stream
  • Net cash position
Bear points
  • Fast-rising gas prices
  • Unpopular industry

For investors, options include the traditional indirect hedges against inflation, such as gold and copper, or even the non-traditional and untested ones like of cryptocurrency or non-fungible tokens (NFTs). But these unconventional options involve taking on lots of risk and joining an ecosystem that is divorced from the macroeconomic dynamics. 

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