|Bid||50.72 x 0|
|Ask||50.84 x 0|
|Day's Range||50.22 - 51.94|
|52 Week Range||38.05 - 254.60|
|Beta (5Y Monthly)||1.05|
|PE Ratio (TTM)||5.45|
|Earnings Date||Mar 12, 2020|
|Forward Dividend & Yield||0.04 (7.08%)|
|Ex-Dividend Date||Aug 29, 2019|
|1y Target Est||3.24|
(Bloomberg) -- Oil slid to an eight-week low on concern that China’s coronavirus outbreak may dent demand. But the drop was tempered by an unexpected decline in U.S. crude inventories and as the World Health Organization opted against declaring the virus a global health emergency.Futures sank 2% in New York on Thursday, paring an earlier 3.5% drop. The Energy Information Administration reported a 405,000-barrel decrease in crude stockpiles last week, in contrast to expectations for a build by analysts and the industry-funded American Petroleum Institute. A committee of experts convened by the United Nations health agency opted to continue monitoring the outbreak, which has killed more than a dozen people and sickened hundreds.“The crude market is partly responding to that decision, somewhat of a muted move compared to the S&P,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Management. “Regardless of what WHO says, the fact we may see demand be hurt is what the markets are really focused on.”The EIA also showed a 1.75-million-barrel gain in gasoline stocks, the smallest since September. Distillate stocks fell 1.19 million barrels, after gaining over 20 million barrels over the previous three weeks.“The EIA data was constructive and favorable,” particularly since a crude stock draw was reported when the market was expecting an increase, said Brian Kessens, portfolio manager at Tortoise, a Kansas firm that oversees more than $21 billion in assets.China, the world’s biggest oil importer, effectively quarantined a major city to contain the SARS-like virus, banning travel from Wuhan, a city of 11 million. The alert has overshadowed concern over the halt of exports from Libya, and suspension of Nigerian Bonny crude shipments.Oil is bearing the brunt of the anxiety due to the potential hit to travel, especially ahead of the Lunar New Year holidays, the biggest human migration in the world. Goldman Sachs Group Inc. predicts the virus may crimp global demand by 260,000 barrels a day this year -- with jet fuel accounting for around two-thirds of the loss -- if the SARS epidemic in 2003 is any guide.West Texas Intermediate futures for March delivery slid $1.15 to settle at $55.59 a barrel on the New York Mercantile Exchange, the lowest close since Nov 29.Brent futures for March settlement declined $1.17 to $62.04 a barrel. The global benchmark traded at a $6.45 premium to WTI for the same month.“Once there is evidence that the outbreak is contained and thus the economic disruption is coming to an end, sentiment on oil should improve, bringing prices back up,” said Pavel Molchanov, energy research analyst at Raymond James & Associates Inc.Libya’s eastern strongman kept virtually all of the nation’s oil fields shut, in a show of defiance after world leaders failed to persuade him to sign a peace deal ending the OPEC country’s civil war. Libya’s oil output plunged to the lowest level since August 2011, according to data compiled by Bloomberg.\--With assistance from James Thornhill, Dan Murtaugh, Saket Sundria, Grant Smith and Sheela Tobben.To contact the reporter on this story: Jackie Davalos in New York at email@example.comTo contact the editors responsible for this story: David Marino at firstname.lastname@example.org, Joe RichterFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Exxon Mobil's oil contract with Guyana would be exempt from a review of the South American nation's deals if the opposition wins the March 2 election, the party's top candidate said. While his People's Progressive Party (PPP) has criticized President David Granger's 2016 deal with Exxon as too generous, Irfaan Ali called the company - whose 1 million barrel cargo of Guyana's first-ever crude production set sail on Monday - a "pioneer" in an interview over the weekend. The PPP's platform pledged to "immediately engage the oil and gas companies in better contract administration/re-negotiation." Other companies exploring off Guyana's coast include Britain's Tullow Oil, Spain's Repsol SA and France's Total.
(Bloomberg) -- Sign up to our Next Africa newsletter and follow Bloomberg Africa on TwitterUganda expects the planned development of two oil fields to cost at least $5 billion, as the government seeks to resolve a tax dispute with the companies that own the sites and pave the way for increased infrastructure spending.That amount is part of the $15 billion to $20 billion that the East African nation anticipates will flow within three to five years to its nascent oil industry, including a refinery and crude pipeline, Energy Ministry Permanent Secretary Robert Kasande said Tuesday in an interview in the capital, Kampala.The government is in talks with Total SA, Cnooc Ltd. and Tullow Oil Plc, which jointly own the Kingfisher and Tilega fields, over the British explorer’s plan to reduce its interest in the assets and allow final investment decisions to be inked. A fallout over how much tax Tullow’s share sale attracted, led the company to abandon a deal in August and for Total to suspend plans to build a $3.5 billion crude export pipeline from Uganda to Tanzania.Uganda was on course to see a final investment decision last year to develop the fields when the tax disagreements emerged. Former energy minister, Irene Muloni, said last month that the government offered a “package” to the companies that could end “pending hindrances.” In November, Muloni said final investment decisions were expected by end-March.There is no update on the negotiations yet, Kasande said.The country is struggling to fund this fiscal year’s budget of 40.5 trillion-shilling ($11 billion) after revenue from sources including pre-oil-development activities declined. Uganda has been hampered by repeated delays in starting production, and the government has depleted as much as $121 million from a crude fund to shore up the shortfall.President Yoweri Museveni’s administration now plans to borrow 600 million euros ($668 million) from the Trade & Development Bank and Standard Bank Group’s local unit to help plug this fiscal year’s budget deficit that’s estimated at 8.4% of gross domestic product, excluding grants.Kasande said the $5 billion funding for the fields would be used “to drill over 500 wells” and build two central processing facilities and a water plant.Uganda also plans to pick explorers in five blocks by the end of this year, with a March 31 deadline to express interest, he said.(Adds details on investment decisions in fourth paragaph)To contact the reporter on this story: Fred Ojambo in Kampala at email@example.comTo contact the editors responsible for this story: David Malingha at firstname.lastname@example.org, Chris KayFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
A booming tech industry could in time help revitalise subdued IPO markets in both the UK and Europe. Fintechs such as Revolut, Monzo and TransferWise have attracted plenty of funds in the private market. Tullow Oil piled disappointment on disappointment when it slashed production forecasts, axed its chief executive and scrapped its dividend in December.
Tullow Oil warned of a $1.5bn writedown after the struggling FTSE 250 oil and gas explorer downgraded its crude price assumptions and cut its reserves estimate. when it revealed it had slashed its production outlook and parted ways with its chief executive and head of exploration. Dorothy Thompson, executive chair, said Tullow had been “working hard on a major review” since the December tumult.
“Climate change is different,” wrote Larry Fink this week. “Companies, investors . . . must prepare for a significant reallocation of capital,” said the chief executive of $7tn investor BlackRock. He ...
Apache saw its stock surge 27% in a single day earlier this week, and the secret behind this massive stock increase may well transform the way companies report on new oil discoveries
European stocks started the New Year with a rally on Thursday as trade optimism continued and China’s central bank gave markets a boost.
British stocks began the new year with a bang on Thursday but the pound slipped as 2020 started with the same old Brexit fears.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Tullow Oil Plc discovered light oil at its Carapa-1 well in Guyana, but the reservoir was smaller than the troubled company had expected prior to drilling. Shares fell as much as 20%.The independent oil producer’s first discovery of the new year comes after a calamitous 2019 in which its stock declined 64% and the chief executive officer and exploration chief stepped down. The commercial viability of Tullow’s previous offshore discoveries in Guyana remains in doubt after the reservoirs were found to contain heavy oil.“The Carapa-1 result is an important exploration outcome with positive implications” for both blocks the company has in the South American country, Mark MacFarlane, Tullow’s chief operating officer, said in a statement on Thursday. “While net pay and reservoir development at this location are below our pre-drill estimates, we are encouraged to find good quality oil.”About four meters of net oil pay were encountered. That was lower than pre-drill forecasts, but Tullow highlighted positive aspects of the well that “suggests the extension of the Cretaceous oil play from the Stabroek license southwards into the Kanuku license.”High Expectations“Expectations were high going into this,” said David Round, an analyst at BMO Capital Markets. “There will be a level of disappointment about the size.”Tullow shares were 4.5% lower at 61.14 pence as of 9:55 a.m. in London trading. That’s down about 95% from the company’s 2012 peak.Rig site testing indicated that the oil is 27 degrees API with a sulfur content of less than 1%, according to Tullow. The well will be plugged and abandoned and a detailed laboratory analysis of the oil quality will follow. Tullow has a 37.5% stake in the Kanuku block. Repsol SA is the operator with 37.5% and Total SA has 25%.“We will now integrate the results of the three exploration wells drilled in these adjacent licenses into our Guyana and Suriname geological and geophysical models before deciding the future work program,” MacFarlane said.The latest well concludes Tullow’s “high-impact exploration program in Guyana,” and while the company made three “technical discoveries,” none are expected to be commercially viable, Will Hares, a senior analyst for Bloomberg Intelligence, said in a note.The Guyana results come as Tullow searches for a new CEO after Paul McDade, and exploration director Angus McCoss, quit on Dec. 9. At the time the company forecast its total production this year will be 70,000 to 80,000 barrels a day -- lower than in 2019 -- because of weaker expectations from its main fields in Ghana. A process to reduce its stake in a Uganda project has been delayed for years.“The Guyana results emphasize Tullow’s increasingly challenged growth outlook amid its Ghana project issues and East Africa delays,” Hares said.(Updates with analyst comments in the 9th paragraph.)To contact the reporter on this story: Paul Burkhardt in Johannesburg at email@example.comTo contact the editors responsible for this story: James Herron at firstname.lastname@example.org, Rakteem KatakeyFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
(Bloomberg) -- It’s been a pretty good year for European stocks. The benchmark Stoxx Europe 600 Index is set for an annual gain of about 23%, more than recovering from a selloff in 2018, and the gauge will end the year near a record high.Among individual stocks, 12 companies in the index have seen their shares double in value, while the year’s worst performer -- Tullow Oil Plc -- fell about 64%.This year’s top performers included a meal-kit startup and a maker of industrial compressors, while a protein shake maker and banks have been among the laggards.And not all share-price moves were news-driven, notes Jeffrey Taylor, head of European equities at Invesco Ltd. “At a stock level, there are plenty of examples of outperformance being driven by re-rating rather than fundamentals alone,” he wrote in a note to clients.Taylor says he’ll remain focused on value rather than growth in 2020. “We see an interesting combination of still loose monetary policy and supportive fiscal trends,” he wrote, “To us, this sounds economic-growth-friendly and growth-stock-unfriendly.”Below we look back at a curated list of some of Europe’s most interesting winner and loser stock stories of 2019.The WinnersAltice Europe NV (+239%)Shares of billionaire Patrick Drahi’s company jumped in August after Altice raised full-year guidance while reporting twice the growth that analysts expected in the quarter. The Amsterdam-based company has also worked at cutting its debt load through asset sales. Lucerne Capital Management Founder Pieter Taselaar said in November that the shares may triple again to 15 euros.HelloFresh SE (+205%)The meal kit-maker’s popularity has surged, and so has its stock price. HelloFresh’s latest quarterly update last month delivered numbers “at the very top” of guided ranges, while marketing costs have fallen, Berenberg analyst Robert Berg said.ASM International NV (+178%)The maker of machines used to produce semiconductors trades around an all-time high following quarterly results in November described as “much better than expected” in a note from NIBC Bank NV’s Edwin de Jong. The numbers were a relief for investors following a rough spell for chip-makers.Galapagos NV (+132%)Gilead Sciences Inc.’s $5.1 billion investment propelled Galapagos shares higher in July, while an earnings update later in the year showed the Belgian-listed firm’s financial position is “as strong as ever,” Barclays analyst Emily Field wrote in an Oct. 25 note to clients.Zalando SE (+101%)The German online fashion retailer has issued upbeat profit guidance and accelerated its sales growth by convincing more brands to use its site to sell apparel, with companies able to build their own virtual stores on the platform.CD Projekt SA (+92%)The Polish video-game maker responsible for the medieval role-playing series, Witcher, has been unstoppable this year and is the best performing Stoxx 600 member of the decade, up 21,000%. But the real test is coming in 2020, as a fresh title, Cyberpunk 2077, featuring actor Keanu Reeves, hits shelves.London Stock Exchange Group Plc (+89%)LSE managed to swerve a 29.6 billion-pound ($38.3 billion) takeover bid from Hong Kong Exchanges & Clearing Ltd. earlier this year, allowing it to pursue its $27 billion takeover of Refinitiv, a move that will take the 300-year-old bourse operator further away from a traditional exchange model and deeper into big data.Greggs Plc (+83%)An unexpected boost to earnings guidance alleviated “peak Greggs” fears in November, and it’s not just baked goods like vegan sausage rolls that are helping the company, according to Shore Capital. Analyst Darren Shirley said in a recent note that coffee has been a standout performer, while the retailer’s meal deal is market leading.Atlas Copco AB (+77%)Orders at the world’s largest maker of compressors have exceeded analyst estimates, as the Stockholm-listed firm struck a resilient tone amid concerns around global manufacturing. Atlas’s vacuum unit, which derives a large part of sales from semiconductor manufacturers, has also seen strong orders, driven by investment in new production technologies.Ferrari NV (+70%)U.K. peer Aston Martin might have had a bad year, but there’s been no stopping its Italian rival. In November, Ferrari raised guidance for 2019 and unveiled its new 200,000-euro ($220,000) Roma Coupe vehicle. The supercar company also said it is teaming up with Giorgio Armani SpA to help push its handbag and clothing lines into the premium space, predicting that branded goods will contribute 10% of earnings before interest and tax within the next 7-10 years.The LosersTullow Oil Plc (-64%)Tullow fell 72% in one day in December as the London-listed firm warned of production issues in Ghana, suspended dividends and announced the exit of its chief executive officer. It was the second plunge in a month, after news that the company reassessing its discoveries in Guyana, South America, prompted a 27% drop on Nov. 13.Glanbia Plc (-38%)The Dublin-traded protein shake-maker slumped in July after a profit warning, and Goodbody analyst Jason Molins expects “muted” growth in 2020. “Given the ongoing challenges in the business and limited earnings momentum, we maintain a cautious stance,” he wrote in a note Dec. 17.NMC Health (-35%)It was a December to forget for NMC, the U.K. listed operator of hospitals in the United Arab Emirates that plummeted as U.S. short seller Muddy Waters Capital LLC said the company’s financial statements hint at potential overpayment for assets, inflated cash balances and understated debt. NMC said the claims are unfounded and is planning an independent review.Nokia Oyj (-34%)The Finnish telecoms firm suffered its biggest stock price drop in decades in October after it cut its outlook and suspended dividends, saying spending to fend off competitors has delayed an earnings boost from 5G mobile networks. It isn’t expecting a major recovery until 2021, and Evli Bank said last month that “prolonged” margin pressures won’t ease until 2021.Centrica Plc (-33%)The British gas owner slumped in July as it announced its first dividend cut since 2015, along with CEO Iain Conn‘s departure, hurt by both a government-imposed cap on consumer energy bills and by outages at nuclear plants and gas wells. The U.K. election result provided minor relief for the shares after Jeremy Corbyn’s resounding loss effectively ended the likelihood of a broad nationalization of U.K. utilities.Ipsen SA (-30%)Ipsen plunged earlier this month as U.S. regulators suspended trials of a rare bone disease drug in patients under 14 years old amid safety concerns. The French firm acquired the treatment, palovarotene, via its $1.3 billion purchase of Clementia Pharmaceuticals Inc. earlier this year. CEO David Meek is stepping down at the end of December.Swedbank AB (-29%)The Stockholm-based bank is under investigation by authorities in several countries amid allegations that it allowed criminals to launder billions of dollars of dirty money. A purge of top bankers will lead to a “fresh start,” it said earlier this month.K+S AG (-29%)A slate of new potash mines and China halting imports have weighed on potash prices, hurting suppliers like Germany’s K+S. The stock’s slump also coincides with a pile of debt amassed from opening a new mine in Canada.Ambu A/S (-29%)The unexpected firing of the Danish medical tech firm’s chief in May sparked a 20% drop in one day and sent short interest in the stock to an all-time high. New CEO Juan Jose Gonzalez has since issued two profit warnings and ended a distribution deal with Tri-anim Health Services in the U.S. Shareholder ATP said this month that the company is now on the right course.Bankia SA (-26%)The Valencia, Spain-based lender has dropped this year amid a decline in core revenue, while the sector was also hit by a court ruling that spurred fears Spain’s banks would have to pay billions of euros in compensation for the way they sold certain mortgages.\--With assistance from Sam Unsted.To contact the reporter on this story: Joe Easton in London at email@example.comTo contact the editors responsible for this story: Beth Mellor at firstname.lastname@example.org, Paul JarvisFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.
Moody's Investors Service, ("Moody's") today downgraded Tullow Oil plc ("Tullow")'s corporate family rating (CFR) to B2 from B1 and probability of default rating (PDR) to B2-PD from B1-PD. Concurrently, the ratings on Tullow's $650 million guaranteed senior unsecured notes due April 2022 and $800 million guaranteed senior unsecured notes due March 2025 were downgraded to Caa1 from B3. The outlook on all Tullow's ratings was changed to negative from stable.
Shares in Africa-focused Tullow Oil rose nearly 6% on Wednesday just two days after the oil producer slashed its production outlook for the fourth time this year and said it had ousted its chief executive and head of exploration, after weak performance of its main producing assets in Ghana. The London-listed company (ticker: TLW.UK), which was founded in 1985 by Irish businessman Aidan Heavey, has suffered a series of setbacks in Ghana, Uganda, and Kenya. Demand for Jubilee field gas from the Ghana National Gas Company has been much lower than expected, and Tullow has experienced technical problems on two new wells at one of its other fields.
An apparent improvement in the trade war and the OPEC+ agreement have boosted bullish sentiment in oil markets, with both Brent and WTI up on Tuesday morning
You might think the hard-money, recession-at-every-corner crowd would be predicting an imminent reversal in the stock market given the 20% gain for the Dow Jones Industrial Average this year. Not necessarily.