A group of high-end hedge funds is hoping to turn to the North Sea offshore oil and gas firm, which they have built large as energy prices rise.
Taconic Capital, CQS և Kite Lake Capital are owned by the Norwegian Energy Company (Noreco), Denmark’s second largest oil and gas producer, whose shares have collapsed by more than 99% since the height of their pre-financial crisis. ,
The Taconic և Kite Lake between them is owned by more than 50% of the company. CQS, one of London’s largest funds, revealed a stake of less than 13 percent in March, and some of the fund’s holdings were held by billionaire founder Michael Hinze.
Also holding positions are Caius Capital and Astaris Capital, a hedge fund launched last year by former Sothic Capital co-founder Martin Beck, while York Capital was also a shareholder.
Noreco has a market capitalization of only 3.14 billion Norwegian kroner (0 270 million), which is unusual for such a high concentration of hedge funds in the register of shareholders.
Last week, the funds further tightened their grip on the company as Peter Coleman of Taconic and Ian Lernut of Kite Lake voted on board members at the company’s annual meeting.
Noreco was the second largest oil and gas company in terms of production, but suffered from falling oil prices during the financial crisis. The company also suffered after cracks were found in one of its oil rigs in 2009. In 2018, he lost a lawsuit against about 470 million US dollars, which he brought against 20 insurance companies that hoped to pay the cracks.
But that year, Taconic, Kite Lake, CQS, and York helped fund Noreco Shell’s acquisition of the reverse current, making it the second largest oil and gas company in Denmark.
Hedge funds are now pinning their hopes on the company predicting that production will almost double in the second half of 2023, helping to upgrade one of those areas to buy assets from Shell. ,
The move to the Noreco board was intended to support the government in increasing gas production, according to one of the foundations.
The price of Brent oil fell from $ 66 at the end of 2019, but fell below $ 20 in April last year, as the coronavirus epidemic forced economies into a deadlock. However, prices recovered this week to $ 70, the highest level in two months as traders bet on higher demand as economies open up and international travel slowly resumes.
The funds also hope they can take advantage of the energy M & A, which includes Chrysaor reverse capture late last year Premier Oil և Waldorf Production purchase North Sea Assets from Cairn Energy in March.