|Bid||338.65 x 0|
|Ask||339.55 x 0|
|Day's range||334.20 - 353.40|
|52-week range||4.69 - 583.40|
|Beta (5Y monthly)||0.70|
|PE ratio (TTM)||17.31|
|Earnings date||28 Apr 2020|
|Forward dividend & yield||0.33 (9.71%)|
|Ex-dividend date||13 Feb 2020|
|1y target est||7.99|
The notice is the latest force majeure claim issued in the LNG sector that is struggling with a seasonal plunge in demand as well as the spread of the coronavirus outbreak, which has further hammered the consumption of the super-chilled fuel globally.
(Bloomberg) -- About $25 billion of oil and gas deals are hanging in the balance following crude’s historic collapse, potentially doing further harm to the finances of companies already battered by the slump.Companies including Occidental Petroleum Corp., BP Plc and Exxon Mobil Corp. are relying on asset sales started last year to bolster their finances. But many deals look less attractive now with oil near $30 a barrel and a bleak outlook for the global economy, according to consultant Wood Mackenzie Ltd.As oil companies around the world scramble to protect their finances by boosting credit lines, slashing spending and suspending buybacks, those leaning too heavily on asset sales may need to find other measures.“I think they’re going to be extremely difficult to execute in the near term,” said Greig Aitken, director of M&A research at WoodMac. “It’s borderline impossible for the next few months.”Valuations have been hit hard by the slump. Infections and deaths from the coronavirus pandemic are still climbing, and large parts of the world are likely heading toward a recession. While OPEC and other major producers are planning talks this week to help steady the market, immense output cuts would be required to compensate for a demand destruction that some traders estimate has risen to as high as 35 million barrels a day.Failed asset sales would only make matters worse for the companies, Aitken said. Oil majors have an additional $27 billion of planned disposals beyond what has been announced.Occidental may have the most to lose from a freeze in the market. The U.S. shale producer has a pile of debt due over the next two years and is depending on asset sales to pay it.A key pillar of its purchase of Anadarko Petroleum Corp. last year was selling off its African assets to Total SA for $8.8 billion. But the disposal of operations in Ghana and Algeria, valued at almost $5 billion, is yet to be signed off.Total can walk away from both transactions should Algeria not give approval by Sept. 30, according to Morgan Stanley. The government there has suggested it may seek to preempt the purchase of the asset, adding further uncertainty to an already stressed market. Ghana meanwhile is claiming $500 million in taxes, complicating the deal.Total declined to comment on the status of the agreements. The French major is pushing ahead with its own $5 billion divestment plan, and on Tuesday closed the sale of more than $400 million of assets in Brunei and West Africa.Occidental referred Bloomberg to remarks from Chief Executive Officer Vicki Hollub in February that there’s “increased risk” associated with the Algeria and Ghana sales. But she pledged to reach her target of raising $15 billion from selling assets, with or without the Africa deals.Wyoming SaleOccidental also wanted to sell land in Wyoming, which state authorities had expressed interest in buying. However, the outbreak of the virus may complicate the state’s efforts to get that deal done, according to Devin McDermott, a New York-based analyst at Morgan Stanley.“There are a lot more pressing issues that every state including Wyoming has to focus on right now,” he said.Even so, Wyoming Governor Mark Gordon said he will “continue to find ways to take steps to explore this opportunity” despite the coronavirus and legislative hurdles in a letter dated March 26. Hollub said the bidding was a “competitive process,” indicating the interest of other bidders.BP to ExxonOthers oil companies including BP, Exxon and smaller players in the North Sea have also been looking to sell.In early February, BP said it would boost its divestment program from $10 billion to $15 billion by the middle of next year. It said last week it’s still on track to hit that target. The company had agreed more than $9 billion of deals by the end of last year, about $5.6 billion of which will come from the pending sale of its Alaskan business to Hilcorp Energy Co.Some deal completions may be revised, “particularly while volatile market conditions persist,” BP said last week, adding that it expects the Hilcorp transaction to go through. Hilcorp didn’t respond to a request for comment.Exxon, already paying its dividend with borrowed money, has been relying on asset sales to bolster its financial position as it attempts to build a series of mega-projects in one of the worst oil markets in decades. Announcing a pullback in its ambitions on Tuesday, the company said it would reduce spending this year by 30% to $23 billion. Exxon is targeting about $10 billion of disposals by the end of next year with assets in the Gulf of Mexico, Azerbaijan and Malaysia on offer. But Senior Vice President Neil Chapman sought to temper expectations for successful sales at Exxon’s analyst day in March.“We don’t expect success on every asset that we put in the market,” he said. “If the value is not there, we’re not going to transact.”Bleak OutlookThe grim macroeconomic outlook is making it “doubly important” that any announced deals close, WoodMac’s Aitken said. But that’s difficult to do since potential buyers are focusing on existing portfolios and looking to conserve cash rather than seeking new opportunities.“Asset sales are extremely challenging right now,” said Morgan Stanley’s McDermott. “In the low oil-price environment we’re in right now, the universe of buyers just dries up.”(Updates with Total’s asset sales in Brunei in 10th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
These two FTSE 100 (INDEXFTSE:UKX) shares offer good value for money in my opinion.The post Have £2k to invest? I’d buy these 2 FTSE 100 stocks in this market crash appeared first on The Motley Fool UK.
Investing.com’s Commodities Week Ahead typically looks at the prospects for oil and gold prices in the upcoming trading week. In the first of this two-part series, we examine the Trump administration's attempts to save the U.S. oil industry amid the collapse in demand for crude from the coronavirus crisis and the production-and-price war between market titans Saudi Arabia and Russia. Read part 2 here.
Short on time and ideas for the ISA deadline? Jonathan Smith looks at some of the most in-demand shares at the moment.The post Looking for ISA ideas? I like last week's 4 most-bought FTSE 100 stocks appeared first on The Motley Fool UK.
UK's FTSE 100 fell on Friday as oil stocks retreated after a strong showing in the previous session, while insurers tumbled after their European Union counterparts were asked to suspend dividend payments to weather the economic hit from the coronavirus crisis. Shares in BP and Royal Dutch Shell fell about 3%, with oil prices flat amid doubts over whether a deal to call off the Saudi-Russian price war would go ahead if the U.S. does not scale back output. After Thursday's numbers showed another record surge in U.S. weekly jobless claims, investors are now waiting for data on European services sector activity for March.
The world's top oil and gas companies are rushing to raise tens of billion of dollars in debt to help them weather one of the worst downturns in the sector's history while faced with high fixed costs and looming dividend payments. Royal Dutch Shell, BP, France's Total , Norway's Equinor and Austria's OMV have all tapped bond markets this week, raising more than $10 billion according to Reuters calculations. Oil prices sank 65% in the first three months of the year to lows of $22 a barrel as strict movement restrictions imposed around the world to limit the spread of the coronavirus led to a collapse in demand for transportation fuels, while a fight for market share between top producers Saudi Arabia and Russia accelerated price falls.
On the brighter side, although the business scenario is unfavorable, BP says that it is not planning job cuts in the coming three months.
World stocks were mixed on Thursday, as the death toll from coronavirus rose and economic pain deepened, with another record week of jobless claims expected in the United States. Oil futures surged after U.S. President Donald Trump said he expected Saudi Arabia and Russia to reach a deal soon to end their oil price war.
BP said Wednesday that several workers who had been on one of its oil platforms in the U.S. Gulf of Mexico tested positive for the coronavirus. A company spokesman declined to identify which platform the cases were associated with.
BP says it is facing the "most brutal environment" for the industry in decades as it counts the cost of the slump in the oil price amid the coronavirus crisis. Oil prices fell by 65% in the first quarter of the year as a result of a sharp drop in demand following restrictions on movement imposed to try to restrict the spread of the virus. A price war between top oil producers Saudi Arabia and Russia further weakened the sector as the two nations increase supplies to try to win market share.
BP on Wednesday cut its 2020 spending plans by 25% and will reduce output from its U.S. shale oil and gas business in the face of the collapse in oil prices triggered by the corononavirus outbreak. BP and other big oil and gas companies are having to rein in spending sharply following the collapse in oil prices driven by a slump in demand because of the coronavirus crisis and a price war between top exporters Saudi Arabia and Russia. "This may be the most brutal environment for oil and gas businesses in decades," CEO Bernard Looney said in a statement.
This week we saw the BP p.l.c. (LON:BP.) share price climb by 10%. But in truth the last year hasn't been good for the...
US crude oil prices fell close to their lowest in 18 years on Monday! Is this bad news for the FTSE 100 oil companies?The post Oil prices crash! Should you invest in BP or Royal Dutch Shell shares in this market crash? appeared first on The Motley Fool UK.