The additional buy-back announcement has eclipsed the consensus miss, part of which is due to higher exploration costs this quarter. Facing low gas prices, the group is lowering its production forecast for 2020. We reckon this is needed as gas prices in North America might need more than a cold winter before bouncing back up. Lastly, the release did not elaborate further on the energy transition strategy, but will do so in May.
20 Feb 2020
Q4: adjusting production in a challenging environment
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Q4: adjusting production in a challenging environment
The additional buy-back announcement has eclipsed the consensus miss, part of which is due to higher exploration costs this quarter. Facing low gas prices, the group is lowering its production forecast for 2020. We reckon this is needed as gas prices in North America might need more than a cold winter before bouncing back up. Lastly, the release did not elaborate further on the energy transition strategy, but will do so in May.