WTI $94.99 -1.05; Brent $102.31 -1.05; Natural Gas $3.93 +2c
Good morning
Another v short blog I’m afraid as we have a lot of things going on….
No great surprise to see the subject of Irish tax rates being discussed, in a recent meeting with Tony O’Reilly of Providence we discussed it at length and he was very much expecting some changes.
Oil Price
Boring and that’s if you believe them (oil prices that is!)
BG Group
Much more to come over the next few days but I am still feeling very happy with BG looking over my notes from yesterday again. The main strategy of portfolio management with resultant concentration on capex reduction gives an opportunity to transform the balance sheet without having to scrimp or even abandon any key projects. I like the focus on good, regular guidance and the company’s objectives are very sound. In LNG, a Malcy favourite there is nothing but good news, profits and margins are set fair for many years and with Sabine Pass makes for a very sound cornerstone to the business.
As I said, much more during the week as I am on the move again but I can hear the sharpening of the pencils in the CFO’s office at Exxon from here…. Target price still 1800p.
BP/Shell/Etc From Daily Flow Test – DY
European regulators have raided the London Offices of BP and RD Shell as part of the investigations in oil price fixing. The regulators are of the view that collusion has been going on since 2002. This investigation has been known about for some time, but this is a major move by the regulators which could suggest that process could be escalating which could ultimately lead to significant fines as occurred in the LIBOR fixing scandal.
Whilst we do not have a view on the outcome of the investigation, the prospect of significant fines could be a realistic outcome if the allegations are found to be true. We therefore expect, both companies share prices to be negatively impacted today.
Wood Group
IMS and AGM statement today but with so many updates this is pretty much a non-event. As expected performance is in line with expectations and Wood Group Engineering and PSN is ahead of the game and GTS is behind but this will be made up in the rest of the year.
Cape
The same goes for Cape as it doesn’t seem long since the last update although we have had a one-to-one with the company since then. Trading has been in line with expectations and costs are again being attacked particularly in the petroleum and LNG markets. Region wise for the full year, Asia Pacific and Australia is ‘challenging’ and overall the board remain confident that the business overall is on track to deliver in line with expectations for the year.
Cape plc 1 Year chart
Chariot Oil and Gas – From Daily Flow Test – DY
European regulators have raided the London Offices of BP and RD Shell as part of the investigations in oil price fixing. The regulators are of the view that collusion has been going on since 2002. This investigation has been known about for some time, but this is a major move by the regulators which could suggest that process could be escalating which could ultimately lead to significant fines as occurred in the LIBOR fixing scandal.
Whilst we do not have a view on the outcome of the investigation, the prospect of significant fines could be a realistic outcome if the allegations are found to be true. We therefore expect, both companies share prices to be negatively impacted today.
Lots more tomorrow as there is a backlog building up!
And finally…
Chelsea are in the final of the Boropa cup tonight and are expected to win, good for them
Wigan finally run out of whatever it was that kept them up at the last minute in the last few years.
Rio Ferdinand retires from international football, why is that on the news page?
Weather over here freezing and wet, first test starts tomorrow then!
Kind regards
Malcolm
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