WTI $38.69 -71c, Brent $43.14 -7c, Diff $4.54 +64c, NG $2.69 +1c
Another flash blog this morning as there are so many results and meetings that I will have to revert after most, herewith a very quick summary with more to follow after meetings.
The oil price stayed relatively subdued after the EIA inventory stats all but confirmed the API numbers with a draw of 5.5m barrels against consensus of a build of 1m barrels. Yesterday I gave an interview to IGTV in which I reiterated the negative fundamentals for the oil price but made a possible left field case for what just might turn out to be a change in policy for Opec, you can watch it here.
Results this morning from Hunting were in line with expectations after previous reports and in what was the worst quarter for oilfield service companies particularly in the US. Revenue is of course down and the company reported a loss from operations of $63m, EPS being a loss of 35.5c. Accordingly the dividend was cut from 8.1 cents to 4 cents which came as a bit of a surprise but maybe quite a wise move under the circumstances. I say that as Hunting is coming towards the end of a series of capital investments in projects which remain under way and will consolidate the company’s operations and ‘position the business for the future’ which includes a substantial expansion project in Singapore which should complete in early 2017. Even with this expansion debt has only risen to $166m and gearing is only 12% so the finances are in pretty good nick and the divvi move probably signals part of the cost cutting which so far has amounted to $41m and a reduction of 25% of the labour force, sharing the pain, so to speak. More after the meeting but not unhappy…
Elsewhere Amec Foster Wheeler are reiterating the mantra of lower revenues, reduced trading margins but with a$50m currency gain due to the strong dollar, again more later.
And Gulf Keystone also say that operationally things couldnt be going much better but they are still owed a significant amount in back revenues, today’s statement from the MNR should help. Meeting same time as Hunting which doesnt help so might have more later.
And I will go to the Lamprell meeting at lunchtime in order to find out if the ‘review of strategy’ under the current ‘challenging conditions’ is going to affect my bull story, much to glean although word is that the Executive Chairman will not be in attendance…
All in one line, Rooney back from the dead with a hat-trick against Club Brugge, England’s women stay in Ashes hunt with a T20 win last night, Usain Bolt v double doper in the 200m later and Stuart Lancaster is to announce the RWC squad at lunchtime.