Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Liberum cuts targets on wide swathe of oil sector firms

Tue, 02nd Feb 2016 12:33

(ShareCast News) - Analysts at Liberum cut their share price targets for a wide swathe of the London-listed oil sector after taking into account the sharp shift lower in futures prices over the last four months.Worries about demand conditions in China and Europe, together with the threat of growing supplies from Iraq, Iran and Libya, had seen the so-called [price] futures strip fall between $15 to $20, the broker said in a research note sent to clients.The near-end of the strip had fallen from a trading range above $100 per barrel in 2014 to within touching distance of $35.Futures prices for further out had dropped to just above $50 per barrel."The oil market appears concerned that, in the short term, supplies from OPEC and the US could outstrip demand but recognises that long-term oil prices above are required to bring forth the investment to replace natural decline."However, while Liberum incorporated then current futures´ prices into its equity valuation models, from 2020 it forecast that a barrel of Brent would trade at an average price of $60, about $10 above market prices.Despite all of the above, Liberum´s Andrew Whittock said he retained a 'neutral' stance on Big Oil.Nonetheless, he was concerned that firms´ estimated free cash flows might not cover their dividend policies even if capital expenditures were reduced.Exploration&production companies should offer more "obvious" value, but positive catalysts remained elusive, he said.His enthusiasm for Tullow, Ithaca and Ophir Energy had thus dimmed, with Premier Oil and Genel being his preferred picks.Although investors may have been put off from Premier Oil due to its levels of debt, the stock offered material appraisal upside and growth opportunities in the UK and Falklands, Whittock wrote in a research note sent to clients.Genel, on the other hand, had volume potential and still held out the prospect of "proper distributions", Andrew Whittock said.From among the majors, BG Group´s target was lowered from 1,185p to 1,008p, BP´s from 405p to 382p and that for Royal Dutch Shell from 1,850p to 1,758p.Liberum also took down its 12-month price targets on Premier Oil (from 90p to 69p) and Genel (from 286p to 226p). The price target on Tullow Oil was lowered from 251p to 170p, on Ophir Energy from 102p to 80p and on Ithaca Energy from 45p to 19p.Whittock also bumped down his view of BP shares to a 'hold' from a 'buy' and on BG Group to a 'sell' from a 'buy'.His recommendation on Royal Dutch Shell on the other hand was upgraded to a 'buy' from a 'hold'. (Sharecast News)
More News
30 Nov 2021 17:33

UPDATE 4-U.S. security review stalls sale of Shell Texas refinery to Mexico's Pemex

(Adds comment from Pemex source)By Erwin SebaHOUSTON, Nov 30 (Reuters) - A U.S. national security review has delayed the sale of Royal Dutch Shell's controlling interest in a Texas refinery to Mexico's national oil company, Petroleos Mexicanos (Pe...

Read more
30 Nov 2021 17:33

UPDATE 1-Shell Deer Park, Texas, refinery sale delayed pending regulator's approval

(Adds details, background)HOUSTON, Nov 30 (Reuters) - The sale of Royal Dutch Shell's controlling interest in the joint-venture Deer Park, Texas, refinery to partner Petroleos Mexicanos (Pemex) has been delayed pending approval by the Committee on...

Read more
30 Nov 2021 17:33

UPDATE 2-National security review stalls sale of Shell U.S. refinery to Mexican state oil firm

(Changes headline, recasts lead, adds no Pemex immediate comment, CFIUS declined to comment, remarks by U.S. representative)By Erwin SebaHOUSTON, Nov 30 (Reuters) - A national security review has delayed the sale of Royal Dutch Shell's controlling...

Read more
30 Nov 2021 16:51

Shell Deer Park Texas refinery saie delayed pending CFIUS approval -company

HOUSTON, Nov 30 (Reuters) - Royal Dutch Shell Plc said on Tuesday a delay in approval from the federal Committee on Foreign Investment in the United States (CFIUS) has delayed the sale of its controlling interest in a joint-venture refinery in De...

Read more
30 Nov 2021 16:03

Date for sale of Shell Deer Park, Texas refinery to Pemex pushed back -source

HOUSTON, Nov 30 (Reuters) - The date for closing the sale of Royal Dutch Shell Plc's controlling interest in the joint-venture Deer Park, Texas, refinery to partner Petroleos Mexicanos (Pemex) has been pushed back until the deal receives federal ...

Read more
30 Nov 2021 11:52

Oil firms face workforce crunch as renewables beckon -survey

By Ron BoussoLONDON, Nov 30 (Reuters) - The oil and gas industry risks a huge workforce shortage as more than half of workers in the sector seek to move into the renewable energy industry, a survey published on Tuesday showed.The survey conducted ...

Read more
30 Nov 2021 09:35

Kremlin: new gas transit deal talks with Ukraine hinge on gas demand in Europe

MOSCOW, Nov 30 (Reuters) - Talks on new gas transit deal with Ukraine depend on demand for the Russian gas in Europe and availability of buyers, Dmitry Peskov, Kremlin spokesman, told reporters on Tuesday.The current transit deal expires after 202...

Read more
30 Nov 2021 09:01

LONDON MARKET OPEN: Stocks resume slide as Omicron optimism flounders

LONDON MARKET OPEN: Stocks resume slide as Omicron optimism flounders

Read more
29 Nov 2021 17:03

LONDON MARKET CLOSE: Stocks attempt to rebound from Omicron rout

LONDON MARKET CLOSE: Stocks attempt to rebound from Omicron rout

Read more
29 Nov 2021 12:18

LONDON MARKET MIDDAY: FTSE 100 bounces 80 points as Omicron fears ease

LONDON MARKET MIDDAY: FTSE 100 bounces 80 points as Omicron fears ease

Read more
29 Nov 2021 09:53

UPDATE 2-FTSE 100 rises after Friday's rout, BT Group jumps on M&A report

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)* Carnival, Wizz Air regain ground* Amigo slumps on plans for equity raise* FTSE 100 up 0.9%, FTSE 250 adds 1.0% (Updates to close)By Bansar...

Read more
29 Nov 2021 08:51

LONDON MARKET OPEN: FTSE 100 rebounds but Omicron uncertainty lingers

LONDON MARKET OPEN: FTSE 100 rebounds but Omicron uncertainty lingers

Read more
26 Nov 2021 17:05

LONDON MARKET CLOSE: Dark mood on Black Friday as variant fears bite

LONDON MARKET CLOSE: Dark mood on Black Friday as variant fears bite

Read more
26 Nov 2021 12:11

LONDON MARKET MIDDAY: Red Friday amid fear of new Covid strain

LONDON MARKET MIDDAY: Red Friday amid fear of new Covid strain

Read more
26 Nov 2021 10:09

ISS recommends shareholders support Shell move to UK

LONDON, Nov 26 (Reuters) - Proxy advisory firm Institutional Shareholder Service (ISS) recommended shareholders support Royal Dutch Shell's plan to move its head office from the Netherlands to Britain, according to a document seen by Reuters.Shell...

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.