2015 E&P Capex Cut May Exceed 15% With No 2016 Rebound: JPMorgan
2015-01-19 09:43:45.199 GMT
By Benjamin Dow
(Bloomberg) -- Global oil & gas capex cuts trending to
exceed 15% y/y drop seen in 2009, only this time “without a
rebound” in 2016, JPMorgan says in note.
* U-shaped rather than V-shaped oil price recovery may lead to
multi-year down-cycle
* Raises Gulf Marine Services to overweight, PT cut 27% to
120p; says co. has high 2015 rev. coverage, high exposure to
resilience of Mideast NOC opex spend
* Cape cut to neutral, PT cut 42% to 203p; has risk of work
deferral in U.K. offshore, low (50%-60%) rev. coverage
* CGG cut to underweight, PT down 47% to EU3.80, sees seismic
co.’s “asset heavy” Acquisition & Equipment businesses to
fare poorly
* Tecnicas Reunidas cut to underweight, PT cut 38% to EU29;
sees shrinking bid pipeline, premium valuation difficult to
justify
* Consensus ratings for select U.K.-listed oil svcs names led
by Gulf Marine with 4.7 rating on 5-point scale, followed by
AMFW 4.05, Cape 4, Lamprell 3.8, Petrofac 3.6, Weir 3.5:
Bloomberg data
Link to Company News:CIU LN <Equity> CN <GO>
Link to Company News:GMS LN <Equity> CN <GO>
Link to Company News:CGG FP <Equity> CN <GO>
Link to Company News:TGS NO <Equity> CN <GO>
Link to Company News:PGS NO <Equity> CN <GO>
Link to Company News:FUR NA <Equity> CN <GO>
Link to Company News:SUBC NO <Equity> CN <GO>
Link to Company News:PFC LN <Equity> CN <GO>
Link to Company News:AMFW LN <Equity> CN <GO>
Link to Company News:WEIR LN <Equity> CN <GO>
Link to Company News:SPM IM <Equity> CN <GO>
Link to Company News:TEC FP <Equity> CN <GO>
Link to Company News:HTG LN <Equity> CN <GO>
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First Word newswire: NH BFW<GO>
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 +44-20-3525-2645 or
jludden@bloomberg.net
2015-01-19 09:43:45.199 GMT
By Benjamin Dow
(Bloomberg) -- Global oil & gas capex cuts trending to
exceed 15% y/y drop seen in 2009, only this time “without a
rebound” in 2016, JPMorgan says in note.
* U-shaped rather than V-shaped oil price recovery may lead to
multi-year down-cycle
* Raises Gulf Marine Services to overweight, PT cut 27% to
120p; says co. has high 2015 rev. coverage, high exposure to
resilience of Mideast NOC opex spend
* Cape cut to neutral, PT cut 42% to 203p; has risk of work
deferral in U.K. offshore, low (50%-60%) rev. coverage
* CGG cut to underweight, PT down 47% to EU3.80, sees seismic
co.’s “asset heavy” Acquisition & Equipment businesses to
fare poorly
* Tecnicas Reunidas cut to underweight, PT cut 38% to EU29;
sees shrinking bid pipeline, premium valuation difficult to
justify
* Consensus ratings for select U.K.-listed oil svcs names led
by Gulf Marine with 4.7 rating on 5-point scale, followed by
AMFW 4.05, Cape 4, Lamprell 3.8, Petrofac 3.6, Weir 3.5:
Bloomberg data
Link to Company News:CIU LN <Equity> CN <GO>
Link to Company News:GMS LN <Equity> CN <GO>
Link to Company News:CGG FP <Equity> CN <GO>
Link to Company News:TGS NO <Equity> CN <GO>
Link to Company News:PGS NO <Equity> CN <GO>
Link to Company News:FUR NA <Equity> CN <GO>
Link to Company News:SUBC NO <Equity> CN <GO>
Link to Company News:PFC LN <Equity> CN <GO>
Link to Company News:AMFW LN <Equity> CN <GO>
Link to Company News:WEIR LN <Equity> CN <GO>
Link to Company News:SPM IM <Equity> CN <GO>
Link to Company News:TEC FP <Equity> CN <GO>
Link to Company News:HTG LN <Equity> CN <GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
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 +44-20-3525-2645 or
jludden@bloomberg.net