The Oil Man: Oil price, Petrofac
21st June 2016 12:01
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WTI $49.37 +$1.39, Brent $50.65 +$1.48, Diff -$1.28 +9c, NG $2.75 +12c
Oil continued to rally yesterday as potential disruption from Brexit was priced down by equity markets - although with only two days to go it seems all is still to play for in the UK.
July WTI expires tonight and, although crude is off around 30 cents this morning, the August contract remains quite well bid.
Watch natural gas creeping up towards three bucks; spies, including the partners, have all been saying that upwards momentum will hold…
Petrofac
I'm off to the Oil & Gas Council Africa Assembly today; I will listen to the conference call and add more later following trading statement this morning.
At first blush it seems to be pretty much in line: net profit guidance hasn't changed and is still looking at consensus of around $445 million (£302 million), before IES and Laggan-Tormore charges, and will be evenly split between first and second half.
The backlog is a creditable $18.9 billion, showing "excellent revenue visibility", although order intake in the first half is less than expected, as the market remains "challenging".
The debt figure is higher than I was expecting at $1.1 billion thanks to the divi, GSA costs and spending on the JSD 6000, which I can already hear people complaining about...
As I said, more after the conference call.
And finally…
So, Wales win the group after a fine three-nil win over Russia last night and England B could only draw with Slovakia after Woy went with some of his unfit mates because he felt sorry for them not having a game so far.
The bloke who set up the JustGiving page to fund a flight home for Raheem Sterling should start one for Wilshere.
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