Don't over-react to the prospects of sector-wide O&G recovery
AHEAD of the Year of the Rooster, some analysts have urged investors to wake up to the promise that resurgent oil prices may augur for listed counters in the oil and gas-driven sectors.
OCBC's head of research Carmen Lee predicted "more upside than downside" on "an oil price uptrend" now that oil stocks are trading at less than half their book values, with "all negatives (almost) priced in".
A Jan 4 Deutsche Bank (DB) Markets Research note said that for beleaguered offshore and marine (O&M) players, 2017 will offer "more sanctioned offshore projects" and "higher oil prices". Citing Wood Mackenzie, the DB note said that up to 25 pre-FID (final investment decision) projects were slated to be sanctioned in 2017, compared with eight in 2016.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Porsche posts Q1 profit drop on ramp-up costs
IBM plots US$730 million expansion of Canadian semiconductor site
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Yeo Guat Kwang, John Chen retiring from corporate boards
US: Wall St opens higher
Air China orders homegrown C919s in challenge to jet duopoly