Total Cut to Mkt Perform at Bernstein; Sees More Value Elsewhere
2015-05-01 07:45:33.35 GMT
By Benjamin Dow
(Bloomberg) --Total cut to mkt perform by Bernstein, PT
EU52 left intact, as “underdog crosses the valuation finish
line” after 1Q results.
* Says co.’s resilience to low prices evidenced in 1Q results
as cash flow from ops fell 19% vs 53% drop in avg liquids
realized prices; says sees “same if not more qualities in
the new Shell”
* Broker raises PT on Eni (outperform) by 11% to EU20
* Broker raises PT on Eni (outperform) by 11% to EU20</li></ul>
* JPMorgan says in separate note that Total, OMV have some
valuation risk from investments made during times of peak
oil price, costs that may depress project returns for years
* Says costs defined by sunk capital for integrated oil
cos. “very hard to dislodge from P&Ls and balance
sheets”
* Before oil price drop, “work in progress” capital was
cited by some for having attractive upside once projects
commissioned, assuming that projects would sell into
$100/bbl environment
* Total’s upstream assets bear above-average cost
inflation risk; notes that co. took another $1.1b in
impairments after $6.5b taken in 4Q
* OMV is at risk of value decline after strong YTD
performance, given co.’s “relatively aggressive”
upstream spend pattern at top of cost, price cycle
* OMV is at risk of value decline after strong YTD
performance, given co.’s “relatively aggressive”
upstream spend pattern at top of cost, price cycle</li></ul>
* NOTE Earnings: Eni 1Q Adj. Net EU648m vs Est. EU446.2m;
Total 1Q Adj. Net Beats Est.; Div. Matches Forecast
Shell 1Q CCS Net $3.2b vs Est. $2.48b; Div. 47C/Share
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
James Ludden
2015-05-01 07:45:33.35 GMT
By Benjamin Dow
(Bloomberg) --Total cut to mkt perform by Bernstein, PT
EU52 left intact, as “underdog crosses the valuation finish
line” after 1Q results.
* Says co.’s resilience to low prices evidenced in 1Q results
as cash flow from ops fell 19% vs 53% drop in avg liquids
realized prices; says sees “same if not more qualities in
the new Shell”
* Broker raises PT on Eni (outperform) by 11% to EU20
* Broker raises PT on Eni (outperform) by 11% to EU20</li></ul>
* JPMorgan says in separate note that Total, OMV have some
valuation risk from investments made during times of peak
oil price, costs that may depress project returns for years
* Says costs defined by sunk capital for integrated oil
cos. “very hard to dislodge from P&Ls and balance
sheets”
* Before oil price drop, “work in progress” capital was
cited by some for having attractive upside once projects
commissioned, assuming that projects would sell into
$100/bbl environment
* Total’s upstream assets bear above-average cost
inflation risk; notes that co. took another $1.1b in
impairments after $6.5b taken in 4Q
* OMV is at risk of value decline after strong YTD
performance, given co.’s “relatively aggressive”
upstream spend pattern at top of cost, price cycle
* OMV is at risk of value decline after strong YTD
performance, given co.’s “relatively aggressive”
upstream spend pattern at top of cost, price cycle</li></ul>
* NOTE Earnings: Eni 1Q Adj. Net EU648m vs Est. EU446.2m;
Total 1Q Adj. Net Beats Est.; Div. Matches Forecast
Shell 1Q CCS Net $3.2b vs Est. $2.48b; Div. 47C/Share
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
James Ludden