• 4 minutes Tariffs to derail $83.7 Billion Chinese Investment in West Virginia
  • 9 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 17 minutes Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 3 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 14 hours Corruption On The Top: Netanyahu's Wife Charged With Misuse of Public Funds for Meals
  • 3 hours Saudi Arabia turns to solar
  • 1 min Why is permian oil "locked in" when refineries abound?
  • 1 hour Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 7 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 20 hours Gazprom Exports to EU Hit Record
  • 3 hours Teapots Cut U.S. Oil Shipments
  • 2 hours Oil prices going down
  • 20 hours OPEC Meeting Could End Without Decision - Irony Note Added from OPEC Children's Book
  • 3 hours Hot line, Macron: Phone Calls With Trump Are Like Sausages Best Not To Know What Is Inside
  • 16 hours U.S. Withdraws From U.N. Human Rights Council
  • 13 hours EU Confirms Trade Retaliation Measures vs. U.S. To Take Effect on June 22
  • 4 hours Putin Says 'Fierce' U.S. Politics Hindering Summit With Trump
  • 19 hours Could oil demand collapse rapidly? Yup, sure could.
  • 19 hours Sell out now or hold on?
Alt Text

Venezuela Forced To Shut Down Production As Operations Fall Apart

Venezuela’s economic, social and political…

Alt Text

The Last Oil Frontier In The Gulf Of Mexico

The potential of the U.S.…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Trending Discussions

Goldman Turns Bullish On European Oil Majors

GS

Goldman Sachs has raised its earnings per share (EPS) estimates for the European oil majors’ third-quarter results, and believes that the stocks will start reversing their underwhelming year-to-date performance when companies report higher Q3 cash flows from a year earlier, thanks to higher oil prices and increased production.

The weak dollar against the euro and the reduction of the oil price estimates since the beginning of this year had prompted oil analysts to reduce their earnings estimates on Europe’s Big Oil by 24 percent.

“Both these negative drivers [the dollar and oil prices] are coming to an end, with stable FX since the beginning of September and 2018 oil price expectations in line with the forward curve for the first time in over 12 months,” according to a Goldman Sachs note dated Thursday, as reported by The Street.

“Our EPS estimates are currently 4% above... consensus expectations for 2018, having been 12% below in February,” Goldman Sachs analysts wrote in the note.

According to the investment bank, European oil majors are expected to report 22-percent yearly growth in cash flows for Q3, on the back of higher production and higher oil prices. This should boost the companies’ stocks that have been underperforming the broader market by 12 percent year to date.

The Q3 figures by Europe’s largest oil companies are also expected to show increased refining margins, due to Hurricane Harvey shutting down U.S. refining capacity. BP is likely to benefit from those higher margins, because it operates large refineries in the U.S. that have not been affected by the storm. Related: How Mexico’s Energy Reform Will Impact The U.S.

France’s Total and Italy’s Eni are Goldman Sachs’ top picks among the European companies, with Shell also rated “buy”. Norway’s Statoil, on the other hand, is a “sell” for Goldman—the only “sell” among the European oil majors—on the back of its exposure to European gas prices under pressure, and possible appreciation of the Norwegian currency, the krone. 

Although oil prices are now half what they used to be three years ago, Big Oil is better positioned now than it was when oil prices were sky high, Michele Della Vigna, co-head of European equity research at Goldman Sachs, said earlier this month.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News