Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on Eni. We currently have 68 research reports from 3 professional analysts.
The Q4 results were below consensus but the focus is on the long-term strategy update. 2020 has brought a lot of updates in the ESG segment and each company is outbidding each other. Eni is now taking a serious commitment by announcing that oil production will decline after 2025. While the expansion into green assets will bring stability to the group, it also means that Eni’s exploration pedigree is becoming less relevant for the long-term valuation.
Busy quarter for the Italian producer, which closed the ADNOC transaction as well as the acquisition of Exxon’s assets in Norway. The 5% qoq decline in adjusted operating profit was only slightly better than the consensus estimate though, as Q2 was rather weak, and was mainly due to production increasing above expectations in Egypt.
Coro Energy (CORO LN) (not covered) & Empyrean Energy (EME LN) (not covered): Operational update in Indonesia | Eni (ENI IM) (not covered): 3Q19 results | SDX Energy (SDX LN)1,6; BUY, £0.65: Operating update in Morocco
Companies: CORO ENI SDX
Jadestone Energy (JSE LN): HOLD, £0.60; Dividend Policy | Eni (ENI IM) (not covered): Will acquire ExxonMobil’s (XOM US) (not covered) upstream assets in Norway | Lekoil (LEK LN) (not covered): 1H19 results
Companies: JSE ENI LEK
President Energy (PPC LN) (not covered): Argentina update | Gulf Keystone (GKP LN) (not covered): KRG Payment | ENI (ENI IM (not covered): Discovery in Nigeria
Companies: PPC GKP ENI
GeoPark (GPRK US); BUY, US$26.00: Initiating coverage: Not only about Block 34 | Eni (ENI IM) (not covered): Sale of 20% stake offshore Indonesia | Victoria Oil & Gas (VOG LN)1,6; Speculative Buy, £0.35: Major new gas to power deal
Companies: GPRK ENI VOG
Range Resources (RRL LN/RRS AU) (not covered): China transaction update | Eni (ENI IM) (not covered): 2Q19 results | Equinor (EQNR NO) (not covered) & Lundin Petroleum (LUPE SS) (not covered): Small oil discovery at the Utsira High | Independent Oil & Gas (IOG LN)1 ; BUY, £0.50: Game changing farm out of assets to a company of Warren Buffet | Block Energy (BLOE LN) (not covered): Production resumption in Georgia | Orca Exploration (ORC.A/B CN) (not covered): Review of strategic alternatives
Companies: RRL ENI IOG BLOE ORC.B
The operating cash flow is down 6% qoq (excluding working capital changes), as the group is impacted by the low gas prices in Europe and Asia (LNG) as well as seasonal effects. Good progress has been made on the exploration front with the group expecting to exceed its 600mmboe target for FY19.
Petrobras (PETR3 BZ) (not covered): To sell shallow water assets, in Brazil, for US$1.5 bn | ENI (ENI IM) (not covered): Discovery in Vietnam | Equinor (EQNR NO) (not covered): 2Q19 results | Total (FP FP) (not covered): 2Q19 results | Orca Exploration (ORC.A/B CN) (not covered): Operational update in Tanzania
Companies: Eni ORCA EXPLORATION GROUP-B
GeoPark (GPRK US) (not covered): Operating update | PetroTal (PTAL LN/TAL CN)1; BUY, £0.45: Cashed-up to deliver up to 20 mbbl/d | i3 Energy (I3E LN)1; Speculative Buy, £1.80: Fully funded for very high impact drilling | Royal Dutch Shell (RDSA/B LN) (not covered): Strategy update | Caspian Sunrise (CASP LN) (not covered): Operational update in Kazakhstan | Volga Gas (VGAS LN) (not covered): Drilling update & May production in Russia | BP (BP LN) (not covered): BP to divest mature oil assets in Egypt to ENOC | ENI (ENI IM) (not covered): Discovery in Angola | Wells to watch over the summer
Companies: GPRK GPRK PTAL I3E RDSA CASP VGAS BP/ ENI
Cabot Energy (CAB LN); Under Review: 1Q19 results | Energean Oil & Gas (ENOG LN) (not covered): 1Q19 update | ENI (ENI IM) (not covered): Discovery in Angola | Wentworth Resources (WEN LN) (not covered): Operational update in Tanzania |
Companies: CAB ENOG ENI WRL
Parex Resources (PXT CN)8 ; BUY, C$31.00: 1Q19 results in line, testing of up to four pay zones has commenced on Andina Norte-1 | Africa Oil (AOI CN/SS): BUY, C$2.60; 1Q19 results | ENI (ENI IM) (not covered): Discovery in Ghana
Companies: PXT AOI ENI
The Q1 results are slightly below consensus (c.8%), with E&P down 20% qoq to €2,308m, against a Brent down 7% qoq at $63/bbl. The miss is partly explained by production being down 2% qoq at 1,832kbpd. Note that the performance from E&P remains solid, being up 11% yoy with prices down 6% yoy and production down 2% yoy.
Occidental Petroleum (OXY US) (not covered) Hostile bid for Anadarko Petroleum (APC US) (not covered) | PetroTal (PTAL LN/TAL CN)1 ; BUY, £0.40: FY18 results | ENI (ENI IM) (not covered): 1Q19 results | Royal Dutch Shell (RDSA/B LN) (not covered) in talks with BP (BP LN) (not covered) | Predator Oil & Gas Holdings (PRD LN) (not covered): Guercif Permit CPR | Tullow Oil (TLW LN); REDUCE, £2.00: 1Q19 trading update | Wentworth Resources (WEN LN) (not covered): FY18 results
Companies: OXY PTAL ENI RDSA PRD TLW WRL
Research Tree provides access to ongoing research coverage, media content and regulatory news on Eni. We currently have 68 research reports from 3 professional analysts.
Sylvania's share price has fallen 53% since its peaked on the 21st Feb, as the global economy hit the brakes. The short term demand outlook for PGMs is miserable, with supply chains breaking down as both luxury goods and car sales sales collapse.
Companies: Sylvania Platinum
Oil declined for a fifth straight week amid a one-two punch from collapsing demand due to the coronavirus crisis and ballooning supply from producers vying for market share. Futures in New York slumped 4.8% on Friday and are poised for the biggest quarterly drop on record as weak demand and an onslaught of supply roil markets. Refineries across the globe are curbing consumption as fuel use declines with people staying home. Meanwhile, major trader Trafigura Group expects as much as 1 billion barrels to be sent into storage tanks. More oil is headed into stockpiles as the Russia-Saudi war for market share that exacerbated crude's crash this month shows no sign of abating. The kingdom held firm on Friday, saying it hasn't had any contacts with Moscow about output cuts or on enlarging the OPEC+ alliance of producers. Russia also doubled down, with Deputy Energy Minister Pavel Sorokin saying oil at $25 a barrel is unpleasant, but not a catastrophe for Moscow. US crude has tumbled about 65% so far this quarter. The crash has crippled domestic producers who are forced to cut production for the first time in 35 years. The International Energy Agency this week warned that global demand was in “free fall” amid coronavirus lockdowns. Meanwhile, Iraq -- OPEC's second-biggest producer -- will allow national oil companies to boost their output and export without imposing any ceiling. Algeria has asked for an emergency OPEC board meeting to discuss the cuts. It comes as one of the world's largest supertanker owners said that ships are being filled with crude at a record pace, as land storage rapidly diminishes. Prices: West Texas Intermediate fell $1.09 to settle at $21.51 a barrel in New York on Friday. Prices dropped 4.1% this week. Brent crude lost $1.41 to settle at $24.93 a barrel. Swaps markets show that physical crude is selling several dollars below benchmark prices. The signs of storage starting to fill are growing, too. Inland tanks for heating oil in Germany are now full, while Pakistan banned oil imports on Thursday because its stockpiles are now sufficiently built up. Rigzone.
Companies: FOG PVR 88E DGOC EME POS TRIN UOG
Oil posted a record weekly jump on hopes that global producers will decide to make historic output cuts next week, though optimism was tempered by concern that the curbs will not avert a glut. The OPEC+ coalition including Saudi Arabia will hold a meeting of its members by video conference on Monday, with the gathering open to even producers outside the group. While it's unclear who will attend, market watchers are predicting that stockpiles are likely to swell even if global supplies are cut by 10 million barrels a day. Investors will be closely watching the guest list of the meeting -- especially names outside the Organisation of Petroleum Exporting Countries and its allies -- after Saudi Arabia made clear it will only cut production if others, including the US, shoulder some of the burden. US West Texas Intermediate futures ended the week up 32%, while Brent crude jumped 37%. Still, prices are less than half the levels at the start of the year, with the coronavirus crisis crushing demand. One delegate from the producer group said a global cut of 10 million barrels a day is a realistic goal. Russian President Vladimir Putin told the country's top oil executives that producing countries should join together to slash output to reverse the collapse in prices, adding that worldwide curbs of a little above or below 10 million barrels a day are possible. Meanwhile, US President Donald Trump is convening an extraordinary gathering of the nation's biggest refiners and producers at the White House on Friday. They are expected to discuss possible relief efforts from the administration, including potential American output cuts. Prices: West Texas Intermediate for May delivery rose $3.02 to settle at $28.34 a barrel Friday. Global benchmark Brent crude for June settlement jumped 14% to $34.11 a barrel. Gasoline futures rose 2.88 cents to 69.16 cents a gallon Friday. Getting countries from all over the world to agree would be a tough task. Even if that's successful, an output reduction of the size that's being discussed will be just a fraction of the 35 million barrels of daily demand destruction some traders now see
Companies: FOG PVR 88E DGOC EME UKOG TRIN UOG
Shearwater sells resilience and today's trading update shows us how resilient demand has been for its products and services. The Group has swung to EBITDA profitability and cash flow is well ahead of expectations. The macro themes of cyber security and remote working are supportive of robust demand levels going forward. We are maintaining our forecasts. Buy.
Companies: Shearwater Group
Strategic Production Acquisition and TSX Listing i3 Energy announced today that is has entered an option agreement to acquire all of the outstanding shares of TSX listed Toscana Energy Income Corporation. Toscana produced on average 1,065 boe/d in 2019 and has 2P reserves of 4.65 mmboe of which 55% consists of oil (and natural gas liquids) and 45% consists of natural gas. Toscana's low-decline production is located in Western Canada. Toscana's lands include a very large holding over one of Western Canada's leading new oil plays targeting the Clearwater formation. i3 Energy has acquired the entirety of Toscana's $C28.2M of senior and junior secured debt for $C3.4M representing a price of $C0.12 per dollar of outstanding debt. i3 is now Toscana's secured lender. The debt purchase was funded with i3 Energy's existing cash resources. i3 Energy has agreed to issue up to 4,399,224 of its shares, representing circa 4% of i3 Energy's existing share capital to acquire the entirety of Toscana's shares, representing a market value of circa $C0.55M based on the market values of 27 March 2020. We believe the announcement represents a positive and transformational change for i3 Energy.
Companies: I3 Energy
Caledonia today announces that it has taken the prudent decision to defer its approval for the payment of the second quarterly dividend (7.5c/sh - $0.9m - 7% of declared Caledonia cash). The Blanket mine in Zimbabwe remains in operation (at a slightly reduced capacity to secure Covid-19 social distancing) and the mine site remains well-stocked with supplies, so despite the current difficulties getting supplies from South Africa production at the mine can continue for some time to come; 2-3 months in our opinion, if the supply chain from South Africa ceased altogether. Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning, the group has released an update in light of COVID-19. The Board reports that it has taken swift action to re-engineer processes to adhere to government guidelines, whilst maintaining client service levels. Q1 2020 trading is reported to have been ‘broadly' in line, with revenue growth of 40% from continuing operations and outstanding orders to ship to customers in the coming months. Q1 was cash neutral, which follows on from the RNS on 5 February, of a net cash position of £849k as at 31 December 2019.
Companies: Caledonia Mining Corporation Plc Com Shs Npv Touchstar
We are reinstating coverage with a Buy rating and price target of 50p following the recent £15m share placing to fund production scale-up for micro-batteries. Our TP reflects a DCF of the micro-battery business which has sufficient customer interest to achieve over £12m annual sales by FY23 and £25m later this decade we believe, generating EBITDA of £1.7m and £7m respectively.
Despite the severe effect of Covid-19 in the United States, normal operations continue for Diversified Gas & Oil (DGO), with little or no impact as a result of the virus. DGO's low decline production, low operating costs and proactive hedging programme, mitigate the impact of the low commodity prices, locking in cash flows and protecting the dividend. With rigs, capital and companies abandoning US oil shale, production is expected to plateau in May 2020 before declining. The decline in US oil shale production will also translate into lower associated gas production. Whilst existing stockpiles may be large enough to prevent a rally in gas prices this year, it sets the stage for a tighter market in 2021 as gas production continues to fall as demand rebounds. Whilst many of its North American and London listed peers have reduced, suspended or cancelled their dividend, DGO remains committed to maintaining its dividend to its shareholders. We reiterate our BUY recommendation and our 148p/share price target.
Companies: Diversified Gas & Oil
Much of the UK’s privatisation programme took place between the early 1980s and the mid-1990s: subsequent sales have been few. Undoubtedly, privatisation attracted many private investors to the market, many for the first time.
Companies: AVO AGY ARBB ARIX BUR CLIG DNL FLTA GDR NSF PCA PIN PXC PHP RE/ RECI RMDL STX SCE SIXH TRX SHED VTA
Caledonia today provides an update on its Blanket mine in Zimbabwe in the light of the full lockdown other than “for essential services” from today as ordered by President Mnangagwa. The mine is still operating as the authorities will grant exemptions for businesses which demonstrate they can operate in a manner that contributes to the management of the spread of Covid-19 infections. Caledonia has applied for this exemption.
Companies: Caledonia Mining Corporation Plc Com Shs Npv
PowerHouse has signed an option for an exclusivity agreement for the UK with Peel Environmental. This potentially makes Peel the lead developer of DMG waste-to-energy projects, both on its own extensive land bank and on sites belonging to councils and waste management companies and other industrial partners across the UK. The agreement provides a mechanism for PowerHouse to monetise its IP through licensing and means PowerHouse will not need to raise finance for individual projects.
Companies: Powerhouse Energy Group
Quadrise’s business development activity has intensified in the last nine months, with progress on opportunities in Morocco, South America, Saudi Arabia (KSA) and the marine sector. COVID-19 will potentially extend the length of time taken to complete trials. However, management notes that the current low oil prices are not likely to have a material impact on interest in using its innovative MSAR fuel as a heavy fuel oil substitute.
Companies: Quadrise Fuels International
Ironveld has signed a range of conditional financing agreements with Inclusive Investment Group (IIG) that mark a step change in its ability to advance its iron, vanadium and titanium project in the prolific Bushveld Complex of South Africa. The agreements will see IIG provide Ironveld with $3.2m in both debt and equity with IIG to take a stake of up to 46.8% in the company subject to certain shareholder approvals. This locks IIG in as a meaningful strategic partner and should allow Ironveld to progress Phase I of its project while it seeks the broader financing required to bring it in to development
Oil posted the biggest weekly plunge since 2008, capping its most dramatic week in recent memory as major producers prepare to drench the market with supply just as the coronavirus crushes demand. But prices jumped following the close, after President Donald Trump said the U.S. would fill the nation's strategic reserve. Losses for the week totalled 23% after the collapse of talks between members of the OPEC+ group triggered the biggest crash in a generation. Instead of reaching a deal to cut output to mitigate the fallout from the virus, producers led by Saudi Arabia and Russia embarked on a war for market share and pledged to pump more.
Companies: TGL TXP VLU EGY GTE CNE DGOC ENQ SQZ UKOG TRIN TLW PHAR