Oilexco Share Discussion Threads

[grupo] 03/11/2018 19:38

November 03 2018 10:10 PM
Business
RELATED STORIES
Oil
Oil
Text Size: A A A

Bloomberg/London

Oil companies saw soaring profits during the third quarter as they emerge worst-in-a-generation crude slump. The main takeaway is that while results are mostly above or in line with expectations, it’s getting harder to impress investors, even with large buybacks.
Here are five key themes from third quarter earnings season:


1. It’s all about the cash
There may be no number more important to Big Oil bosses right now than cash flow. Royal Dutch Shell Plc in particular has made it a priority to turn itself into a well-oiled cash machine. It’s focused on getting the highest-margin barrels out of the ground, and churning money out of its liquefied natural gas trading business.
In the third quarter, the Anglo-Dutch oil major brought in its biggest cash haul in a decade, excluding working capital movements. That obliterated analyst estimates for what the company could produce. “We like the direction of travel,” said Alasdair McKinnon, lead fund manager at Shell investor Scottish Investment Trust.


2. Show me the money
The big question from shareholders: Are companies going to use all that money to pay us? The answer is yes. Most companies accelerated or continued share repurchase programmes, signalling confidence the dark days of the crude slump are gone. There were contrasts, though – Shell is going faster than anyone, while Exxon Mobil Corp has yet to discuss resuming buybacks.


3. Saving for a rainy day
While oil companies may be enjoying surging cash – and handing some of it back to investors – almost no one has any interest in boosting capital spending, at least for now. Every major company except for Exxon pledged to keep capital expenditure at a near-decade low for the foreseeable future.
They see this as important to winning back the confidence of shareholders. The value of the companies eroded from 2014, after they found themselves locked into expensive mega-projects during a major crude price collapse.


4. Debt dilemma
The other big question from shareholders: what about debt? Having low debt means having more firepower and flexibility to do deals as well as ride out the next market downturn. Yet debt hasn’t really declined that much from a year ago, reflecting the fact that these companies have only recently started generating enough cash to cover shareholder distributions and their capital budgets again.


5. Crisis of confidence
Even after all their hard work, investors are still uncertain of the industry’s commitment to financial discipline. Shares of oil companies in both Europe and the US have lagged the gains in the crude price throughout 2018. Shell’s monster cash numbers posted on Thursday didn’t prevent a sell-off. Investors were more enthusiastic about Exxon and Chevron - both rose in New York after reporting earnings.
Even for Shell, most analysts think the discipline is real, and it will just take more quarters of consistently good delivery to see the stock price catch up.
“While quarterly volatility may be off-putting for some, even when to the upside, we think Q3 provides good evidence that Shell’s financial framework can work,” said Biraj Borkhataria, at RBC Capital Markets, in a note. “In our view the shares are materially undervalued at these levels.”

[grupo] 03/11/2018 19:37

November 03 2018 10:10 PM
Business
RELATED STORIES
Oil
Oil
Text Size: A A A

Bloomberg/London

Oil companies saw soaring profits during the third quarter as they emerge worst-in-a-generation crude slump. The main takeaway is that while results are mostly above or in line with expectations, it’s getting harder to impress investors, even with large buybacks.
Here are five key themes from third quarter earnings season:


1. It’s all about the cash
There may be no number more important to Big Oil bosses right now than cash flow. Royal Dutch Shell Plc in particular has made it a priority to turn itself into a well-oiled cash machine. It’s focused on getting the highest-margin barrels out of the ground, and churning money out of its liquefied natural gas trading business.
In the third quarter, the Anglo-Dutch oil major brought in its biggest cash haul in a decade, excluding working capital movements. That obliterated analyst estimates for what the company could produce. “We like the direction of travel,” said Alasdair McKinnon, lead fund manager at Shell investor Scottish Investment Trust.


2. Show me the money
The big question from shareholders: Are companies going to use all that money to pay us? The answer is yes. Most companies accelerated or continued share repurchase programmes, signalling confidence the dark days of the crude slump are gone. There were contrasts, though – Shell is going faster than anyone, while Exxon Mobil Corp has yet to discuss resuming buybacks.


3. Saving for a rainy day
While oil companies may be enjoying surging cash – and handing some of it back to investors – almost no one has any interest in boosting capital spending, at least for now. Every major company except for Exxon pledged to keep capital expenditure at a near-decade low for the foreseeable future.
They see this as important to winning back the confidence of shareholders. The value of the companies eroded from 2014, after they found themselves locked into expensive mega-projects during a major crude price collapse.


4. Debt dilemma
The other big question from shareholders: what about debt? Having low debt means having more firepower and flexibility to do deals as well as ride out the next market downturn. Yet debt hasn’t really declined that much from a year ago, reflecting the fact that these companies have only recently started generating enough cash to cover shareholder distributions and their capital budgets again.


5. Crisis of confidence
Even after all their hard work, investors are still uncertain of the industry’s commitment to financial discipline. Shares of oil companies in both Europe and the US have lagged the gains in the crude price throughout 2018. Shell’s monster cash numbers posted on Thursday didn’t prevent a sell-off. Investors were more enthusiastic about Exxon and Chevron - both rose in New York after reporting earnings.
Even for Shell, most analysts think the discipline is real, and it will just take more quarters of consistently good delivery to see the stock price catch up.
“While quarterly volatility may be off-putting for some, even when to the upside, we think Q3 provides good evidence that Shell’s financial framework can work,” said Biraj Borkhataria, at RBC Capital Markets, in a note. “In our view the shares are materially undervalued at these levels.”

[grupo] 03/11/2018 19:37

November 03 2018 10:10 PM
Business
RELATED STORIES
Oil
Oil
Text Size: A A A

Bloomberg/London

Oil companies saw soaring profits during the third quarter as they emerge worst-in-a-generation crude slump. The main takeaway is that while results are mostly above or in line with expectations, it’s getting harder to impress investors, even with large buybacks.
Here are five key themes from third quarter earnings season:


1. It’s all about the cash
There may be no number more important to Big Oil bosses right now than cash flow. Royal Dutch Shell Plc in particular has made it a priority to turn itself into a well-oiled cash machine. It’s focused on getting the highest-margin barrels out of the ground, and churning money out of its liquefied natural gas trading business.
In the third quarter, the Anglo-Dutch oil major brought in its biggest cash haul in a decade, excluding working capital movements. That obliterated analyst estimates for what the company could produce. “We like the direction of travel,” said Alasdair McKinnon, lead fund manager at Shell investor Scottish Investment Trust.


2. Show me the money
The big question from shareholders: Are companies going to use all that money to pay us? The answer is yes. Most companies accelerated or continued share repurchase programmes, signalling confidence the dark days of the crude slump are gone. There were contrasts, though – Shell is going faster than anyone, while Exxon Mobil Corp has yet to discuss resuming buybacks.


3. Saving for a rainy day
While oil companies may be enjoying surging cash – and handing some of it back to investors – almost no one has any interest in boosting capital spending, at least for now. Every major company except for Exxon pledged to keep capital expenditure at a near-decade low for the foreseeable future.
They see this as important to winning back the confidence of shareholders. The value of the companies eroded from 2014, after they found themselves locked into expensive mega-projects during a major crude price collapse.


4. Debt dilemma
The other big question from shareholders: what about debt? Having low debt means having more firepower and flexibility to do deals as well as ride out the next market downturn. Yet debt hasn’t really declined that much from a year ago, reflecting the fact that these companies have only recently started generating enough cash to cover shareholder distributions and their capital budgets again.


5. Crisis of confidence
Even after all their hard work, investors are still uncertain of the industry’s commitment to financial discipline. Shares of oil companies in both Europe and the US have lagged the gains in the crude price throughout 2018. Shell’s monster cash numbers posted on Thursday didn’t prevent a sell-off. Investors were more enthusiastic about Exxon and Chevron - both rose in New York after reporting earnings.
Even for Shell, most analysts think the discipline is real, and it will just take more quarters of consistently good delivery to see the stock price catch up.
“While quarterly volatility may be off-putting for some, even when to the upside, we think Q3 provides good evidence that Shell’s financial framework can work,” said Biraj Borkhataria, at RBC Capital Markets, in a note. “In our view the shares are materially undervalued at these levels.”

[grupo] 03/11/2018 19:36

November 03 2018 10:10 PM
Business
RELATED STORIES
Oil
Oil
Text Size: A A A

Bloomberg/London

Oil companies saw soaring profits during the third quarter as they emerge worst-in-a-generation crude slump. The main takeaway is that while results are mostly above or in line with expectations, it’s getting harder to impress investors, even with large buybacks.
Here are five key themes from third quarter earnings season:


1. It’s all about the cash
There may be no number more important to Big Oil bosses right now than cash flow. Royal Dutch Shell Plc in particular has made it a priority to turn itself into a well-oiled cash machine. It’s focused on getting the highest-margin barrels out of the ground, and churning money out of its liquefied natural gas trading business.
In the third quarter, the Anglo-Dutch oil major brought in its biggest cash haul in a decade, excluding working capital movements. That obliterated analyst estimates for what the company could produce. “We like the direction of travel,” said Alasdair McKinnon, lead fund manager at Shell investor Scottish Investment Trust.


2. Show me the money
The big question from shareholders: Are companies going to use all that money to pay us? The answer is yes. Most companies accelerated or continued share repurchase programmes, signalling confidence the dark days of the crude slump are gone. There were contrasts, though – Shell is going faster than anyone, while Exxon Mobil Corp has yet to discuss resuming buybacks.


3. Saving for a rainy day
While oil companies may be enjoying surging cash – and handing some of it back to investors – almost no one has any interest in boosting capital spending, at least for now. Every major company except for Exxon pledged to keep capital expenditure at a near-decade low for the foreseeable future.
They see this as important to winning back the confidence of shareholders. The value of the companies eroded from 2014, after they found themselves locked into expensive mega-projects during a major crude price collapse.


4. Debt dilemma
The other big question from shareholders: what about debt? Having low debt means having more firepower and flexibility to do deals as well as ride out the next market downturn. Yet debt hasn’t really declined that much from a year ago, reflecting the fact that these companies have only recently started generating enough cash to cover shareholder distributions and their capital budgets again.


5. Crisis of confidence
Even after all their hard work, investors are still uncertain of the industry’s commitment to financial discipline. Shares of oil companies in both Europe and the US have lagged the gains in the crude price throughout 2018. Shell’s monster cash numbers posted on Thursday didn’t prevent a sell-off. Investors were more enthusiastic about Exxon and Chevron - both rose in New York after reporting earnings.
Even for Shell, most analysts think the discipline is real, and it will just take more quarters of consistently good delivery to see the stock price catch up.
“While quarterly volatility may be off-putting for some, even when to the upside, we think Q3 provides good evidence that Shell’s financial framework can work,” said Biraj Borkhataria, at RBC Capital Markets, in a note. “In our view the shares are materially undervalued at these levels.”

[ariane] 03/11/2018 09:53

PARIS (Agefi-Dow Jones) - Morgan Stanley on Friday lowered its price target on Total to 57 euros, instead of 64.9 euros previously, leaving however unchanged its recommendation "overweight" on the value. The bank notes that "Total has released third-quarter earnings modestly above the consensus", but with strong cash generation. "Free cash flow reached $ 4.5 billion, or 230% of the quarterly dividend, its highest level since at least 2006," said Morgan Stanley. The Total share yields 0.51% to 50.38 euros. ([e-mail]) ed: ECH


Agefi-Dow Jones The financial newswire


(END) Dow Jones Newswires


November 02, 2018 12:20 ET (16:20 GMT)

[ariane] 03/11/2018 09:53

PARIS (Agefi-Dow Jones) - Morgan Stanley on Friday lowered its price target on Total to 57 euros, instead of 64.9 euros previously, leaving however unchanged its recommendation "overweight" on the value. The bank notes that "Total has released third-quarter earnings modestly above the consensus", but with strong cash generation. "Free cash flow reached $ 4.5 billion, or 230% of the quarterly dividend, its highest level since at least 2006," said Morgan Stanley. The Total share yields 0.51% to 50.38 euros. ([e-mail]) ed: ECH


Agefi-Dow Jones The financial newswire


(END) Dow Jones Newswires


November 02, 2018 12:20 ET (16:20 GMT)

[ariane] 02/11/2018 10:47

Oil Prices Rebound On Trade Deal Optimism
Fri, 2nd Nov 2018 10:35


WASHINGTON (Alliance News) - Oil prices rose slightly on Friday to rebound from recent string of losses after US President Donald Trump and Chinese President Xi Jinping have expressed optimism about resolving their bitter trade disputes.

Global benchmark Brent crude for January delivery rose by 31 cents or 0.43 to USD73.20 a barrel, while US West Texas Intermediate (WTI) crude futures were up marginally at USD63.70 a barrel.

US President Donald Trump said he had a "long and very good" conversation with Chinese President Xi Jinping on trade and North Korea, and that the two planned to meet at the upcoming G-20 summit.

Xi said on CCTV state television that he hoped China and the US would be able to promote a steady and healthy relationship, and that he was willing to meet with Trump in Argentina on the trade issue.

The optimism for a potential trade deal between the US and China helped spur a global relief rally in equity markets.

Traders are also bracing for the imposition of US sanctions on Iran that will come into effect on November 5 at midnight.

Media reports suggest that the US has agreed to let eight countries - including Japan, India and South Korea - keep buying Iranian oil in exchange for continued import cuts.

RTT News/dpa-AFX
Alliance News