Grondstoffen « Terug naar discussie overzicht

Premier Oil: goedkoop en kansrijk

2 Posts
DeZwarteRidder
0
Forget Bitcoin! I’d rather invest in the Premier Oil share price today

Peter Stephens | Wednesday, 23rd January, 2019 | More on: GPOR PMO
Image source: Getty Images.

While Bitcoin’s 80% fall since reaching a record high in late 2017 has been hugely disappointing, other assets have also experienced tough periods of late. Premier Oil (LSE: PMO), for example, has recorded a decline of 50% since early October, with a falling oil price the key catalyst behind its slump.

Although Bitcoin may continue to post declines as a result of weak investor sentiment and its lack of fundamentals, Premier Oil appears to have recovery potential. As such, it may be worth buying alongside another struggling FTSE 250 share which released a positive trading update on Wednesday.

Improving outlook

As mentioned, the Premier Oil share price has experienced a difficult period. It has, though, seen a partial recovery in recent weeks. The oil price has gained ground as investors have become less bearish about its prospects. This has helped to push the company’s shares higher, although they are still down by over half since early October.

Of course, the oil and gas sector is volatile, and wild swings in share prices are nothing new. Investing in any related stock therefore comes with a high degree of risk, since their profitability is highly dependent on the price of oil. And with geopolitical situations within a number of OPEC countries best described as ‘fluid’ at the present time, it would be unsurprising for major price movements in oil to continue throughout 2019.

Against this backdrop, Premier Oil may appear to be an unappealing investment. The company, though, has a price-to-earnings (P/E) ratio of around 3, which suggests it currently offers a wide margin of safety. With further debt reduction set to be delivered, the stock could offer an enticing risk/reward opportunity that makes it more appealing than Bitcoin over the long run.

You Really Could Make A Million

Of course, picking the right shares and the strategy to be successful in the stock market isn't easy. But you can get ahead of the herd by reading the Motley Fool's FREE guide, "10 Steps To Making A Million In The Market".

The Motley Fool's experts show how a seven-figure-sum stock portfolio is within the reach of many ordinary investors in this straightforward step-by-step guide. Simply click here for your free copy.

Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned.
DeZwarteRidder
0
Premier is an international oil and gas exploration and production company

The company’s strategy is to grow shareholder value by investing in high quality production and development opportunities while maintaining exposure to upside value from successful exploration within a strict capital discipline framework. We seek to maintain the highest standards of corporate responsibility.

Well-established international operator

International oil and gas exploration and production company
Experienced management team with deep industry knowledge
Production spread across three regions, diversifying risk
Reserves and resources of around 902 mmboe as at 31 December 2017

Financial discipline and balance sheet focus

Conservative hedging policy protects cash flow
Operating cash flow of US$496 million in 2017
Low cost base and capital commitments
Cash and undrawn facilities of around US$540 million
Focus on delivering balance sheet debt reduction

Growing the underlying value of the business

Seek to maximise value from our low cost, stable production base to generate cash flows
Cash flows are either used to reduce our net debt, invested in high return opportunities, or distributed to shareholders, if appropriate
Develop high quality assets in parts of the world where we have a strategic or operational advantage, for example
UK – strong business unit and considerable tax assets
South East Asia gas market – long term (2029) gas contracts delivering volumes into Singapore
North Falklands Basin – dominant business with access to a material resource base
Mexico - world class oil discovery at Zama
Premier’s exploration focus remains on under-explored but proven hydrocarbon basins
Add high quality assets to the portfolio through selective acquisitions at low points in the commodity price cycles

2 Posts
Aantal posts per pagina:  20 50 100 | Omhoog ↑

Meedoen aan de discussie?

Word nu gratis lid of log in met uw e-mailadres en wachtwoord.

Direct naar Forum

Markt vandaag

 AEX
912,20  +1,61  +0,18%  10:17
 Germany40^ 18.749,40 -0,12%
 BEL 20 3.986,60 -0,67%
 Europe50^ 5.077,41 -0,15%
 US30^ 39.536,60 +0,07%
 Nasd100^ 18.190,50 +0,19%
 US500^ 5.228,58 +0,14%
 Japan225^ 38.098,70 -0,24%
 Gold spot 2.347,73 -0,55%
 EUR/USD 1,0779 +0,07%
 WTI 78,52 +0,31%
#/^ Index indications calculated real time, zie disclaimer

Stijgers

EBUSCO HOLDING +3,28%
Akzo Nobel +2,50%
Basic-Fit +1,55%
ABN AMRO BANK... +1,29%
DSM FIRMENICH AG +1,21%

Dalers

NSI -1,49%
FASTNED -1,07%
AZERION -1,03%
Nedap N.V. -0,93%
Fugro -0,77%