Opinion

Oil price, Plexus, Bowleven, Genel, And finally…


Oil price

The Russian Energy Minister has this morning in an interview on CNBC said that they are fully behind the Opec initiative to cut production. He said that Russia ‘is reducing production in stages' and that by the end of April would have reached their target of 300/- b/d and that the cut is up to 200/- b/d at the moment. Overall the picture looks good too, Reuters claim that Opec production is down to 32.01m b/d which shows a 93% degree of ‘adhesion' and getting better. If these are your yardsticks for the oil price then, at least in the short term it is time to close off those bearish bets, they are exposed.

Yesterday's inventory stats were a mixed bag but for choice better than market expectations. Crude stocks built but not by as much as expected, 867/- vs f/c of 1m barrels was certainly tolerable for the market. Products drew big time again, gasoline was down 3.7m barrels against expectations of 1.9m and distillates fell 2.48m b's, twice the guess. With April on the doorstep and time for refiners to step up to the plate it would be a reasonable guess that throughput will rise and increased runs will draw more crude.

Plexus Holdings

A not unsurprising loss from POS after such a hard time in its core markets but after all the cost cutting and industry turmoil it might have been worse. Revenue was almost halved and led to a pre-tax loss of £2.5m but cash flow, as you would expect, is strong. The company strengthened its already debt free balance sheet with a raise and now has £10m of cash to be able to use as the market turns round. This may not happen immediately, in his usual extremely long but, worth reading statement, Ben van Bilderbeek says he is ‘looking forward to an upturn in conditions in the next financial year', which I am taking to mean 2H of this year at the earliest.

Unlike other oilfield service companies the POS share price has behaved badly in recent months, having peaked at 125p in January it is now 72.5p which I suggest doesnt take into account adequately its prospects. With a state of the art product range and blue chip client list, recently added to by yet more new wins I predict better times ahead for POS.

Bowleven

It's game over at Bowleven as Chairman Billy Allan leaves the building, swiftly followed by Kevin Hart and Kerry Crawford as COC wield the axe. One assumes that now the asset sale will move ahead speedily with calls into messrs Foo and Lowden and then the return of cash to shareholders.

Genel

The loss of $1.3bn was down to the telegraphed Taq Taq impairment charge and the production fell sharply with no longer any forward guidance offered. 2P reserves are 161 mmbbls  from 242m following the Taq Taq annihilation. Going forward the outlook is on Tawke and the gas developments at Miran and Bina Bawi but that's quite a long wait….

And finally…

Arsene Wenger has told his morning news conference that no final decision has yet been made about his future but those in the know suggest that he is about to sign a new, two year contract with the club. That may change of course if they get stuffed by City on Sunday… It may not please a large contingent of fans who are getting more and more restless as the likelihood of their normal run to the last 16 of the Champions League stops altogether next year…

And it's Konta v Venus in the semi-final in Miami…


Visit source site

malcysblog.com/2017/03/oil-price-plexus-bowleven-g...

Malcy's BlogPlexusBowLevenGenel Energy

More items from malcy


President Energy, Range Resources

President Energy PPC has announced record results in January with each of their concessions making good returns and contributing profits. In the month the Argentine assets generated $1.3m after opex, G&A and finance costs. Positive cash generation was higher at $1.8m due to continued utilisation ...

Malcolm Graham-Wood - Malcy's Blog


Posted 3 days agoOpinion > MalcyMalcy'sMalcy's Blog +2

SDX, ECO Atlantic, IOG

SDX Energy A slight disappointment today for SDX as the KSS-2 well has come in as ‘not a commercial success'. With the well attempting a step out location with directional drilling targeting the upthrown side of the main bounding fault it showed that the fault has isolated the source rock. CEO P ...

Malcolm Graham-Wood - Malcy's Blog


Posted 4 days agoOpinion > SDX EnergyIOGIndependent Oil & Gas +1

Oil Price, Frontera Resources And Finally…

WTI $62.39 +84c, Brent $65.67 +83c, Diff -$3.48 +32c, NG $2.64 +8c Oil Price IP Week started more with a whimper than a bang, what with the US shut for GW's birthday it seemed that traders were focused more on the cocktail circuit than the oil price. That combined with WTI for March expiring ...

Malcolm Graham-Wood - Malcy's Blog


Posted 5 days agoOpinion > oil pricefrontera resourcesMalcy +2

Oil Price, Zenith Energy, EnQuest, Sundry-RockRose-Baron Oil, and Finally…

WTI $61.68 +34c, Brent $64.84 +51c, Diff -$3.16 +17c, NG $2.56 -2c Oil Price Last week WTI was up $2.48 and Brent +$2.05, it didnt feel that good but the heavyweights came in from Opec and Non-Opec and lifted the gloom. The final piece in the jigsaw was the Saudi Energy Minister stating that ...

Malcolm Graham-Wood - Malcy's Blog


Posted 5 days agoOpinion > MalcyMalcy'sMalcy's Blog +7

Oil Price, Saffron/Coro, Victoria Oil & Gas, Zenith, Link and Finally…

WTI $61.34 +74c, Brent $64.33 -3c, Diff -$2.99 -77c, NG $2.58 -1c Oil Price Traders say it was a funny old day in the market yesterday, an early sell off was closed with a weak greenback helping out, but WTI gained most as it finished up on the day. The differential is now below $3 and means ...

Malcolm Graham-Wood - Malcy's Blog


Posted 8 days agoOpinion > MalcyMalcy'sMalcy's Blog +6
All posts from malcy