WTI $37.16 -35c, Brent $40.11 -15c, Diff $2.95 +20c, NG $2.06 -1c
More pressure on the oil price with lows tested during the day, the fact that Brent finished above 40 bucks is more luck than judgement. The EIA inventory stats looked like they were going to help with crude drawing by 3.6m barrels against forecasts of a build of 730/- barrels but just when you thought it was safe to go back in the water distillates built by 5m barrels much higher than the whisper of 2.3m. The Opec monthly report is unlikely to add much although expect a bigger reduction in US production as per the EIA.
Despite a ‘long period of challenging market conditions’, Wood continues to remain pretty upbeat and with a strong balance sheet and robust cash flow it remains the poster boy of the sector. Announcing that its EBITA guidance of around $465m is still intact, and that the company will continue to make strategic acquisitions where appropriate it even managed to maintain forecasts of a double digit dividend increase this year. The only words of caution came in upstream and subsea where visibility is slightly less than the usual 6-9 months of backlog. Wood is weathering the storm better than most and will emerge strongly in due course.
Independent Oil & Gas
I got a cuff round the ears the other day for suggesting that the news from IOG that the Skipper well had been funded was only ‘modestly good news’ which I suppose is fair, after all the trouble it has taken to get this one to being funded and drill ready the news was probably better than modest. Today IOG announce that they have a well management contract with AGR which will be paid for in cash or shares, only the rig contract to go now and spud date is still on for January/February next year. So, credit where its due and full marks for tenacity, if anyone deserves to succeed it is Mark, Peter and team…
The company announces that it is in breach of certain covenants in its RBL and has received a limited term waiver from CBA, I assume that this means another radical shake-up for Nighthawk which has already been downsizing pretty seriously lately.
The Gooners provided their fans with another get out of jail card last night by winning in Greece by one more than the required two goals. At least they, Chelski and the Noisy Neighbours will not be playing on too many Sundays in the Prem.
Tonight in the Boropa, soon to be joined by Man Who, Spurs and the HubCap Stealers are in action.
At the risk of overdoing an already over stretched joke, the headlines of MONK OUT will have come as less of a surprise in Swansea than in the City, unfortunately Garry Monk eventually succumbed to a long stretch of losses and paid the ultimate price.