See page 9 fpr top performers in 2013
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Tullow Reverses Gains; Barclays Cuts 2014 EPS Est. 20% to 45c 2014-01-15 09:20:05.90 GMT
By Benjamin Dow Jan. 15 (Bloomberg) -- Tullow (-2.2%) reverses gains of as much as 2.3% earlier after operations update, expansion of Kenya resource ests; vol. ~79% of 3-mo. daily avg. * House broker Barclays (overweight, PT 1,500p) “materially” cuts 2013 EPS est. to 13c vs 61c earlier * FirstEnergy (outperform) values Kenya wells at 15p-shr unrisked for Amosing-1, 11p/share unrisked for Ewoi-1 * Bernstein (outperform, PT 1,600p) notes lack of updates on Mauritania, “farming-down TEN” development * Block 10BB onshore Kenya partner Africa Oil (+5.7%) pares earlier gains of as much as 8.4%
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
--Editor: Gaurav Panchal
To contact the reporter on this story: Benjamin Dow in Moscow at +7-495-771-7735 or bdow2@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net
Royal Dutch Shell to sell USD 15bn of assets, including North Sea oil fields
Royal Dutch Shell will dispose of USD 15bn of assets, including some North Sea oil fields, in the next two years, the Financial Times reported.
The Dutch oil giant will sell mature oil fields in the North Sea and other locations, a portion of its refining operations and some early stage projects, according to a person with intimate company knowledge.
As oil prices plunge and costs pile up, investors have been clamoring for oil giants to clamp down on spending. The company's new Chief Executive Officer, Ben van Beurden, who assumed the helm two weeks ago, is expected to adopt more investor-friendly measures.
In October, Shell said it would increase sales of assets over the next two years to increase cash flow. It started a strategic review of its Nigerian assets and U.S. shale properties and recently said it would not move forward with a multi-billion dollar gas to liquids plant in Louisiana.
Source Financial Times
BSkyB climbs amid deal speculation - market reports
Shares in BSkyB, the UK-based listed satellite TV broadcaster, rose on 14 January amid chatter about potential M&A deals, the Daily Mail reported. UBS, an adviser to BSkyB, suggested a number of possible takeover transactions, thus increasing speculation, the report said.
UBS suggested Sky’s 39% shareholder 21st Century Fox Group - owned by Rupert Murdoch - might try and merge the business with its existing Sky Italia and Sky Deutschland pay-TV operations, the Daily Telegraph said. It added that the analysts said, alternatively, BSkyB might tie up with a mobile-phone company such as O2 or Vodafone to increase its financial strength against competitors.
The Financial Times, which also noted the deal speculation, said that UBS is one of Vodafone’s joint house brokers and formerly advised Murdoch-owned News Corp on a 2011 bid to buy out Sky.
The listed British telecoms group BT has also recently been tipped as a potential buyer of BSkyB, the Mail report said.
Source Daily Mail, Daily Telegraph, Financial Times
A2A looks to buy other utilities
A2A, the listed Italian utility, is looking to become an aggregating force in the utilities sector, Italian language daily Il Sole 24 Ore reported. The report cited documentation produced by A2A management that still needs to be approved by shareholders.
The report said that A2A is looking to target small utilities in its immediate geographic area.
The report said that A2A has ruled out any capital increase to fund any M&A and has also said that any transactions will not put at risk the control of the group by the Milan and Brescia city councils.
A2A has a market cap of EUR 2.636bn.
Source Il Sole 24 Ore
Tullow Oil plc (“Tullow”) today announces oil discoveries at the Amosing-1 and Ewoi-1 exploration wells in Block 10BB onshore northern Kenya. As a result of these latest successes and recently reported discoveries at Ekales-1 and Agete-1, Tullow has updated its estimate of discovered resources in this basin to over 600 mmbo. Tullow believes that the overall potential for the basin, which will be fully assessed over the next two years through a significant programme of exploration and appraisal wells, is in excess of one billion barrels of oil.
Exploration well results
The Amosing-1 and Ewoi-1 discoveries in Block 10BB continue Tullow’s 100% success record in the basin with seven out of seven discoveries to date. Based on results of drilling, wireline logs and samples of reservoir fluid, the Amosing-1 well has intersected net oil pay of between 160 and 200 metres, significantly exceeding Tullow’s pre-drill expectations. The Ewoi-1 well has encountered net pay of 20 to 80 metres and has continued to de-risk the basin flank play opened up by the Etuko-1 well in 2013. Following completion of logging operations the wells will be suspended for future flow testing to confirm the net pay counts. The rigs will then move to drill the Emong-1 well, adjacent to the Ngamia field, and the Twiga South-2 appraisal well, both in Block 13T. The partnership has elected not to continue into the next exploration phase in Block 10A in Kenya.
Development and pipeline studies
Given the significant volumes discovered and the extensive exploration and appraisal programme planned to fully assess the upside potential of the basin, Tullow and partners have agreed with the Government of Kenya to commence development studies. In addition, the partnership is involved in a comprehensive pre-FEED study of the export pipeline. The current ambition of the Government of Kenya and the joint venture partnership is to reach project sanction for development, including an export pipeline, in the period 2015/2016.
Tullow operates both the Amosing-1 and Ewoi-1 wells with a 50% interest and Africa Oil has a 50% non-operated interest.
ANGUS McCOSS, EXPLORATION DIRECTOR, TULLOW OIL PLC, COMMENTED TODAY,
“Exploration results to date from the first basin, amongst a chain of basins, have proven that Tullow's onshore acreage in northern Kenya has the potential to become a significant new hydrocarbon province. The programme of over 20 wells we have planned across our licences over the next twenty four months should materially add to the 600 mmbo discovered to date through a combination of exploration and appraisal. With up to five other analogous basins being tested during this programme, Tullow has the opportunity to increase Kenya’s resources significantly beyond today’s estimates.”
PAUL McDADE, CHIEF OPERATING OFFICER, TULLOW OIL PLC, COMMENTED TODAY,
“The results to date are extremely positive for achieving a commercial development from the discoveries made in this basin. We will now be working with the National and County Governments with the aim of progressing both the upstream development and the associated export pipeline to project sanction in the period 2015/2016. There is clearly scope for the development to be expanded if there is further exploration success in other basins.”
>>> Trading Statement
Tullow Oil plc (Tullow) issues this statement to summarise recent operational activities and to provide trading guidance in respect of the financial year to 31 December 2013. This is in advance of the Group’s Full Year Results, which are scheduled for release on Wednesday 12 February 2014. The information contained herein has not been audited and may be subject to further review. In addition, Tullow has today separately announced a Kenya Operational Update.
Operational Update
Tullow’s 2013 financial results are expected to deliver strong revenue and gross profit growth and operating cash flow of $1.9bn reflecting growth in production and stable oil and gas prices. Following a successful $650m debut bond issue in November 2013, Tullow’s balance sheet is well-funded and the Group has unutilised debt capacity of $2.4bn.
Tullow’s exploration programme added over 200 mmboe to contingent resources in 2013 through important wells in Kenya and Norway from an exploration expenditure of $1 billion. In line with Tullow’s strategy, the exploration campaigns have now added an average of 200 mmboe per year to the Group’s Contingent Resources over the past seven years. However, not all wells were successful and Tullow expects a net write off of approximately $405 million in relation to 2013 exploration and $325 million in relation to prior years’ exploration expenditure.
In West Africa, Jubilee field production averaged approximately 100,000 bopd for 2013. The field exited 2013 with a production rate of approximately 100,000 bopd following recent issues with the FPSO’s water injection system which have now been resolved. As previously disclosed, the Ghana National Gas Company’s onshore gas processing plant will not be ready to receive Jubilee gas until 2H 2014. The completion of a third gas injection well in Q4 2013 brought only limited relief and further gas disposal options are being discussed with the authorities in Ghana. With resolution of these issues, Tullow estimates that Jubilee field production will average 100,000 bopd for 2014. These delays, which are not within Tullow’s control, do not affect the recoverable reserves of the field. Furthermore, Tullow is confident that, once the gas processing facilities onshore are completed, the Jubilee field will be able to produce to its full potential given the field's well capacity and the strong performance of both the reservoir and the FPSO to date. In Mauritania, the Frégate-1 well is expected to reach total depth of approximately 5,800 metres by the end of January 2014.
In East Africa, Tullow has today separately announced oil discoveries at Amosing-1 and Ewoi-1 onshore Kenya and increased discovered resources for the basin to over 600mmbo. The announcement also outlines the current ambition of the Government of Kenya and partners to reach project sanction in the period 2015/16. There have been a number of positive announcements from the Governments of Uganda and Kenya regarding joint initiatives for a crude oil pipeline to the Indian Ocean. Progress is also being made with the Government of Uganda on approval for field development plans. In Kenya and Ethiopia, Tullow will continue exploration, appraisal and testing activities in three of the ten frontier basins with some 20 exploration and appraisal wells and multiple flow tests planned over the coming 18 months.
Tullow has completed the sale of its Bangladesh assets and is awaiting Government consent to complete the sale of its Pakistan assets. As previously announced, the sale of our UK and Dutch assets is being restructured. The process for reducing Tullow’s stake and capital commitments in the TEN Project is ongoing with proposals being evaluated. The TEN development project remains on track for first oil in mid-2016.
Group working interest production for 2013 averaged 84,200 boepd and production guidance for 2014 is 79,000 to 85,000 boepd. This forecast accounts for the sale of the Bangladesh assets.
COMMENTING TODAY, AIDAN HEAVEY, CHIEF EXECUTIVE SAID:
“Tullow is a stronger company at the beginning of 2014 than in January 2013. We made good progress across the business over the past year despite facing challenges within the oil and gas sector. Our operating cash flow is $1.9 billion which funds our value creating exploration campaigns. Our exploration successes in Kenya and Norway mean that Tullow is meeting its resource addition targets and expects to deliver in excess of 200 mmboe in 2014. We have an exceptional exploration portfolio and will drill over 40 wells in the next 18 months in a wide-ranging campaign. We continue to advance a pipeline of high quality development projects in West and East Africa. 2014 is full of opportunities for our business and the Board is confident that Tullow will have another strong and successful year.”
* Tullow Makes Discoveries at Kenya Wells Amosing-1, Ewoi-1
US Market Closed Higher, After weakness on Monday, retailers helped to yesterday recovery, Big Tech names outperformed yesterday, volume were on the light side @ 636mil shares...VIX @12.28 -7.53%...SKEW @ 133.43 +2.17%...Philadelphia Fed President Plosser and Dallas Fed President Fisher both gave speeches today in which they left an impression that they remain in favor of continued tapering efforts...World Bank raises Global Growth Forecast (from 3% to 3.2%) on Strength in developed economies (China cut from 8% to 7.7%, Brazil lowered by 1.6pts to 2.4%)...Nikkei rebound today +2.5%...China new loan misses estimates to hit 1year low...Shanghai -0.25%...
Eur$1.3640 S&P Fut -0.01% European Fut +0.29%
Keep an eye on :
- ABG LN : African Barrick Gold Sees Positive Results From Kenya Drilling
- AIR FP : Boeing Aware of 787 Battery Incident at Narita Jan. 14
- AIR FP : Airbus CEO Open to Space Merger, Ready to Bid for Missile Maker
- AKZA NA : Akzo Nobel CFO Keith Nichols to Step Down at the End of June
- ATLN VX : Actelion Is ‘Actively Looking’ for M&A Opportunities
- BARN SW : Barry Callebaut 1Q Sales Meet Estimates; Confirms Targets
- BMPS IM : Monte Paschi Needs Financial Investors, Profumo Tells Repubblica
- BRBY LN : Burberry 3Q Retail Sales Beat Ests.
- EN FP : Bouygues to Study Extending Monaco Into the Sea: Le Figaro
- CDR SM : Codere Says It Will Miss Euro Bond Coupon Payment Due Tomorrow
- CDR SM : CNMV Investigates Codere's Hedge Fund Creditors, Expansion Says
- CHR DC : Chr. Hansen 1Q Net Misses Ests., Starts Share Buy-Back Program
- CO FP : Casino 2013 Sales Below Ests., Hypermarket Vols. Improved
- CSR LN : Samsung Electronics Selling Stake in CSR, Citi is doing it (9.9m shares-646/674p -4.96% discount mid range)
- DAI GY : Daimler May Build Smaller Models in U.S., Renschler Tells Welt
- DELB BB : Maverick Capital Trims Delhaize Short Position to 1.24%
- COL SM : Villar Mir Says It Buys 19.3% of Inmobiliaria Colonial From RBS
- GENL LN : Genel 2013 Net Working Interest Oil Production 44kbbl/d
- GSK LN : GSK 4Q China Sales Trend ‘Bit More Positive’ vs 3Q: CFO
- HMB SS : H&M CEO Wants More Stores in Africa Eventually, DI Reports
- HMB SS : H&M Dec. Total Sales Rise 10%; SME Est. Up 9.1%
- JUP LN : Jupiter Says Assets Under Management Rise 5.9% Q/q
- SDF GY : Potash names higher in the US on China buyers should settle prices before Chinese new year
- NYR BB : Citadel Europe Raises Short Position in Nyrstar to 1.23%
- ORA FP : Moody’s Cuts Orange Ratings to Baa1 from A3; Outlook Stable
- UG FP : Hollande: Possible Purchase of Peugeot Stake Won’t Lift Deficit, if asked will be done with fund from disposals
- RNO FP : Nissan's Infiniti Says It's Working With Daimler on Car Platform
- ROG VX : Roche’s Tamiflu Oral Suspension Faces ‘Brief Shortage,’ FDA Says
- RWE GY : RWE Gets German Grid Approval to Idle Unprofitable Power Plants
- SAB SM : Sabadell Cut to Ba2 From Ba1 by Moody’s; Outlook Is Negative
- SAN FP : Sanofi Sees FDA Filing for Lyxumia in 2015, CEO Says
- TLW LN : Tullow Sees 2014 Group Working Interest Output 79kboe/d-85kboe/d
- TW/ LN : Taylor Wimpey Sees FY Objectives In Line With Expectations
- UBIS LN : United Biscuits Said to Draw Interest From China’s Hony Capital
- VIV FP : Canal+ Gets Exclusive French League Rugby Rights for Five Years
See attached SG Premium List Note - lot of changes
>>> Up
*ALLIANZ SE RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*ALSTRIA RAISED TO OVERWEIGHT VS UNDERWEIGHT AT JPMORGAN
*ANGLO AMERICAN RAISED TO BUY VS NEUTRAL AT UBS
*ASTRAZENECA RAISED TO EQUAL WEIGHT AT MORGAN STANLEY
*DEUTSCHE EUROSHOP RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
*ESPIRITO SANTO RAISED TO BUY VS NEUTRAL AT GOLDMAN
*SCANIA RAISED TO HOLD VS SELL AT DNB
*SHAFTESBURY RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN
*STANDARD LIFE RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*STATOIL RAISED TO NEUTRAL AT NOMURA
*SWISS LIFE RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE
*TOPDANMARK RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE
>>> Down
*AUTOLIV CUT TO HOLD VS BUY AT DNB
*BRITISH LAND CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*CATLIN CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*CENTRICA CUT TO UNDERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*CONWERT CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*DANONE CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*DIRECT LINE CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE
*EASYJET CUT TO NEUTRAL VS BUY AT CITI
*ENI CUT TO REDUCE AT NOMURA
*FERREXPO CUT TO NEUTRAL VS BUY AT UBS
*GAGFAH CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*IGD CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN
*KOENIG & BAUER CUT TO HOLD VS BUY AT BANKHAUS LAMPE
*MAPFRE SA CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*QSC CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*RESOLUTION CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*SAS CUT TO SELL VS NEUTRAL AT CITI
*SONGBIRD CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*SSE CUT TO UNDERWEIGHT VS OVERWEIGHT AT BARCLAYS
*UNILEVER CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN
*UNITE CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*WERELDHAVE CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
>>> PT Change
>>> Initiation
*AUTOGRILL RATED NEW BUY AT JEFFERIES, PT EU7.75
*GTECH RATED NEW BUY AT SOCGEN; PT EU30
>>> Call
>> Stock
*ABB EXIT SOCGEN PREMIUM LIST
*ANTOFAGASTA ADDED TO UBS’S LEAST PREFERRED LIST
*BAE SYSTEMS ADDED TO UBS'S MOST PREFERRED LIST
*BP ADDED TO SCOGEN PREMIUM LIST
*CASINO SOCGEN PREMIUM LIST
*EDF SOCGEN PREMIUM LIST
*FERREXPO ADDED TO UBS’S LEAST PREFERRED LIST
*GLAXOSMITHKLINE ADDED TO SOCGEN PREMIUM LIST
*GLENCORE ADDED TO UBS’S MOST PREFERRED LIST
*HEINEKEN EXIT SOCGEN PREMIUM LIST
*INDITEX REMOVED FROM UBS'S LEAST PREFERRED LIST
*ING EXIT SOCGEN PREMIUM LIST
*KLOECKNER REMOVED FROM UBS’S LEAST PREFERRED LIST
*LINDE EXIT SOCGEN PREMIUM LIST
*N BROWN ADDED TO UBS'S LEAST PREFERRED LIST
*RAUTARUUKKI ADDED TO UBS’S LEAST PREFERRED LIST
*ROCHE ADDED TO SOCGEN PREMIUM LIST
*SAFRAN REMOVED FROM UBS'S MOST PREFERRED LIST
*SALZGITTER ADDED TO UBS’S MOST PREFERRED LIST
*SES EXIT SOCGEN PREMIUM LIST
*SKF ADDED TO SOCGEN PREMIUM LIST
*TCS CUT FROM GOLDMAN’S CEEMEA FOCUS LIST