The share price of Northbridge declined sharply during Q4 2018, reflecting the fall in the price of oil and a belief that any recovery in rig count is likely to be delayed. Although the Group’s dependence on the oil & gas industry has lessened in recent years, a recovery to normality in the industry is important to Northbridge. Management strategy has, meanwhile, targeted additional growth areas, not least the fast-growing data centre and renewable energy sectors. That said, even at the current oil price, we still expect rig count to continue to expand during FY2019F and beyond.
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Operationally leveraged
- Published:
29 Jan 2019 -
Author:
David O’Brien -
Pages:
39
The share price of Northbridge declined sharply during Q4 2018, reflecting the fall in the price of oil and a belief that any recovery in rig count is likely to be delayed. Although the Group’s dependence on the oil & gas industry has lessened in recent years, a recovery to normality in the industry is important to Northbridge. Management strategy has, meanwhile, targeted additional growth areas, not least the fast-growing data centre and renewable energy sectors. That said, even at the current oil price, we still expect rig count to continue to expand during FY2019F and beyond.