17 jul: Test
24 jul: Bobler fra dybet fik hammerslag på rekordpriser ved nyligt afhold..
19-07-2012 09:22:00

EARNINGS PREVIEW: LNG To Boost UK Oil Companies' Second Quarter

Relateret indhold

By Alexis Flynn

TAKING THE PULSE: Weaker crude prices and slack consumer demand should translate into lower second-quarter earnings for two of the U.K.'s three major oil and gas companies. Divestments and oil field shutdowns are likely to put a further drag on profits, analysts said.

However, unlike larger peers Royal Dutch Shell and BP, fast-growing BG Group should buck the trend.

Most sector analysts have already cut their expectations to reflect Brent crude prices, which were 7% lower year-on-year in the second quarter. Attention will now turn to how companies are managing the costs of their major projects in this more challenging price environment.

Royal Dutch Shell remains the safe bet for many analysts, with its giant projects in Qatar and Canada continuing to provide the kind of stable, profitable output many of its peers envy. Like Shell, BG Group has a significant liquefied natural gas business, which somewhat insulates both firms from fluctuating oil prices. In contrast, BP's fortunes are more closely linked to the price of crude.

COMPANIES TO WATCH:

BP PLC (BP) (July 31 at 0600 GMT)

MARKET EXPECTATIONS: Analysts expect BP's adjusted profit to be significantly lower year-on-year, citing a heavy maintenance schedule that crimped output from key oil fields in the Gulf of Mexico and the North Sea. Despite lackluster expectations, many analysts still see BP in a transitional phase and will instead focus their attention on signs of future recovery. For example, evidence that BP is generating more cash, as the massive liabilities from the 2010 Deepwater Horizon disaster recede, will be worth paying attention to, RBC Capital analyst Peter Hutton said. Refining and marketing earnings are likely to hold up a bit better, due to a lack of significant outages.

MAIN FOCUS: Investors are still keenly awaiting news of a possible settlement of BP's Gulf of Mexico oil spill liabilities, which are likely to be in the billions of dollars. Many BP-watchers are broadly resigned to the idea that the company will stay in an operational holding pattern until it gets final clarity on this cost. Attention will instead turn to the firm's Russian strategy and plans to sell its stake in TNK-BP. BP and its Russian partners entered formal talks over the sale Wednesday, but it is unclear if other potential buyers are still interested.

Royal Dutch Shell PLC (RDSB.LN) (July 26 at 0600 GMT)

MARKET EXPECTATIONS: Shell is unlikely to escape the effects of lower quarterly crude prices and analysts expect the company to post marginally lower adjusted profit, compared to the second quarter of 2011. However, healthy margins will be locked in to Shell's long-term LNG contracts and the continuing ramp-up of its high-value Pearl gas-to-liquids plant in Qatar will also help, said Credit Suisse. Overall oil and gas production is expected to be higher year-on-year. In its refining and marketing division, weaker crude prices are expected to help improve margins and profitability.

MAIN FOCUS: Analysts broadly agree that while Shell has done a good job delivering the kind of big-ticket projects needed to turn around declining production. However, they are starting to ask questions about the costs, and risks, of delivering the next phase of growth. Any revisions to previous cost estimates, particularly in its Australian LNG developments, will be keenly watched. There may also be questions about Shell's strategy for East Africa, after the company abandoned its takeover bid for Mozambique-focused Cove Energy this week.

BG Group PLC (BG.LN) (July 26 at 0600 GMT)

MARKET EXPECTATIONS: Unlike its larger peers, profits at the U.K.'s third-largest energy company are expected to rise, thanks to its superior production growth. JPMorgan Cazenove analyst Fred Lucas said BG is still on track to post a 4% increase in quarterly hydrocarbon output, despite a major outage at Total SA's (TOT) Elgin-Franklin field, where BG is a partner. It is as yet unclear whether BG's gas hedging strategy will shield profits at its key LNG division from fluctuations in the relationship between U.S. benchmark gas prices and international Brent crude prices. These two markers can have profound effects on how much money BG can make from LNG sales into different regions. Analysts estimate LNG earnings to be in line, or marginally higher, than a year ago.

MAIN FOCUS: Progress at BG's ripest oil-producing assets, offshore Brazil, will absorb much investor interest. Petroleo Brasileiro SA (PBR), BG's operating partner in Brazil, recently slashed its own production targets, decrying them as unrealistic and over-ambitious. Clarification on how this affects BG's production outlook for 2012 will be sought. Analysts will also be looking for detail on how BG is pushing back against creeping cost inflation in its Australian LNG project.

Write to Alexis Flynn at alexis.flynn@dowjones.com

Order free Annual Report for Petróleo Brasileiro SA

Visit http://djnweurope.ar.wilink.com/?ticker=BRPETRACNPR6 or call +44 (0)208 391 6028

Order free Annual Report for Total SA

Visit http://djnweurope.ar.wilink.com/?ticker=FR0000120271 or call +44 (0)208 391 6028

Order free Annual Report for BG Group Plc

Visit http://djnweurope.ar.wilink.com/?ticker=GB0008762899 or call +44 (0)208 391 6028

Order free Annual Report for Royal Dutch Shell Plc

Visit http://djnweurope.ar.wilink.com/?ticker=GB00B03MLX29 or call +44 (0)208 391 6028

Order free Annual Report for BP plc

Visit http://djnweurope.ar.wilink.com/?ticker=US0556221044 or call +44 (0)208 391 6028

Order free Annual Report for Total SA

Visit http://djnweurope.ar.wilink.com/?ticker=US89151E1091 or call +44 (0)208 391 6028

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

July 19, 2012 03:22 ET (07:22 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
Ingen indlæg

Fondsbørsmeddelelser

Vestas får ordre på 51 MW i Kina

15-12-2017 15:38:40
Vindmølleproducenten Vestas har hentet en ordre på 51 megawatt (MW) i Kina, fortæller selskabet i en meddelelse fredag eftermiddag.Der er tale om en bestilling af 23 V110-2,0 MW-møller, der er optimeret til en kapacitet på 2,2 MW hver.Møllerne skal opstilles i Liaoning-provinsen i det nordøstlige Kina.Ordren indeholder også en serviceaftale, fremgår det, men længden af den samt kundens og projekte..

Novo: Lægemiddelkomité anbefaler godkendelse af Ozempic i Europa - NY2

15-12-2017 13:19:21
Novo Nordisk har fået en vigtig anbefaling fra en lægemiddelkomité under de europæiske sundhedsmyndigheder, EMA, der anbefaler GLP-1-håbet Semaglutid godkendt på det europæiske marked.Semaglutid, der skal markedsføres under navnet Ozempic, skal først officielt godkendes af EMA og EU-Kommissionen, før midlet kan ryge på markedet, men en positiv anbefaling fra lægemiddelkomitéen er som oftest også l..

Aktier/middag: H+H til tops mens C20 går i rødt

15-12-2017 11:41:22
Humøret er vrissent på børserne i Europa fredag, og ved middagstid er det danske C20 Cap-indeks ingen undtagelse, da det falder 0,9 pct. til 1121,34 - især trukket ned af Novo Nordisk.Uden for eliteindekset belønnes H+H International dog pænt for et virksomhedsopkøb til 800 mio. kr., der vil løfte selskabets omsætning med en halv milliard.USA SPREDER DÅRLIG STEMNINGDen generelle nedturen følger i ..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge

Relaterede aktiekurser

Total S.A. 54,48 0,0% Aktiekurs uændret
BP PLC $0.25 505,20 0,0% Aktiekurs uændret
BP p.l.c. 40,28 0,0% Aktiekurs uændret
Petroleo Brasileiro S.A... 9,43 0,0% Aktiekurs uændret
Total 46,51 0,0% Aktiekurs uændret
Royal Dutch Shell PLC 'A.. 2.428,50 0,0% Aktiekurs uændret
Royal Dutch Shell PLC 'B.. 2.452,50 0,0% Aktiekurs uændret
Royal Dutch Shell PLC Ro.. 66,23 0,0% Aktiekurs uændret
Royal Dutch Shell PLC Ro.. 64,70 0,0% Aktiekurs uændret
Total S.A. Total ORD SHS 46,42 0,0% Aktiekurs uændret
Royal Dutch Shella 27,68 0,0% Aktiekurs uændret
Royal Dutch Shellb 28,10 0,0% Aktiekurs uændret

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2017  Disclaimer Privatlivspolitik
Aktieinformation leveres af Morningstar.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
17. december 2017 12:43:15
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20171124.1 - EUROWEB1 - 2017-12-17 12:43:15 - 2017-12-17 12:43:15 - 1 - Website: OKAY