Saturday , May 15 2021

Oslo Stock Exchange fell – oil price peeling



Oslo Borsa investors won Christmas on Tuesday. The main index fell by 2.8 percent to 841.26. This means that the stock exchange has reached 11.3 percent of the highest price in October 948.48.

The downturn arose after the sharp fall of the United States in Monday, as well as from cases that began on Tuesday. In the United States, the technology sector is down.

Oil prices are falling

Oil prices continue to decline. Brent's oil price has dropped by 4.8 percent to $ 63.68, which is about $ 2.5 lower than the stock market opening. US WTI oil crash is 5.7 percent to US $ 54.3.

Compared to the first day of the day, the North Sea Oil Barrel was sold to the Oslo Stock Exchange at a price of $ 65.52.

Market participants await TDN immediately, with increased oil reserves in the US before the Opec meeting in early December, where potential cuts in production will be discussed. US oil stocks are expected to increase by 2.8 million barrels last week, reaching around 445 million barrels.

According to TDN Direct data, BNP Paribas calculations show that Opec will agree to cut output at its next official meeting on December 6 and that the Brent Prize will increase by 80 USD per barrel before the end of the year. In 2019, the bank expects $ 69 a barrel on the WTI and Brent price of $ 76 per barrel.

On Monday, Russian Energy Minister Alexander Novaks announced that this country is planning to sign a partnership agreement with Opec and will be discussed at the next meeting.

Oil and offshore stocks

Indekstunge Equinor dropped by 2.0% to US $ 201.30, while Aker BP dropped 6.6% to NOK 226.60. DNO dropped by 5.0 percent to 13.31 kronor.

Several oil service shares hit the crisis. Among them we find PGS, which decreased by 6.3 percent to 18.65 kroons. Underwater 7 dropped by 7.0 percent to 91.66 kronor.

Revenue season

The third quarter of the season is heading towards the end, but some numbers are still highlighted.

Golden ocean

John Fredriksen, the largest company in Golden Ocean, could report better development in the third quarter than previously forecasted analysts. The share ended at 6.8 percent NOK 54.50.

"These figures were better than expected and the dividends are in line with the expectations of consensus. The adjusted EBITDA is 15 percent higher than the consensus estimate. Again, the company proves that they are good at chartering," said Marius Furuly, analyst at Carnegie to Hegnar.no.

"Without the company reporting its contributions, I suspect it's a Capesize segment that earns revenue in the third quarter. The fourth quarter was quite lower than forecast, so the stock has been so weak recently. In the future, we believe that rates Furuly will continue to grow.

The analyst has a buying recommendation for the Gold Ocean with a price target of 90 kronor.

– They accept unanimous expectations, but they are in line with our numbers. The edition of 15 cents is 3 cents better than what people were expecting, commenting on the analyst Espen L. Fjermestad Fearnley Securities against Hegnar.no.

"Based on the current location and moving from peers, the fourth quarter does not get so much worse," he continues.

He has a buying recommendation for the Golden Ocea with a price target of 100 crowns.

BW Offshore

BW Offshore quadrupled quarter-on-quarter, but declined slightly for the operation than expected. Stocks fell by 7.5 percent to 44.05 kroons.

"As usual with BWO and the company's steady cash flow, there were only a few differences between actual figures and expectations. Estimates of EBITDA of $ 125 million were strikingly positive, compared with estimates of 125, and a consensus of $ 120 million. This is due with a slightly higher Dussaf's contribution than expected, and this also reflects the modified Abo agreement outlined in Amendment 2, says Pareto analyst Fredrik Stene.

Pareto Securities acquired a share with a target of NOK 73 per share.


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