It said in a statement on Friday that earnings before interest, tax, depreciation and amortisation will rise by about 5% for E&P companies between mid-2020 and mid-2021 as oil prices post a modest increase.
“Global demand for transportation fuel will remain below five-year average levels beyond 2021, barring speedier resolutions to Covid-19 and trade tensions among producing countries, ” it said. E&P spending is tracking a 40%-50% decline in 2020, and will continue at a low level in 2021 without higher prices. Companies will use excess cash flow to pay down debt and maximise shareholder returns before increasing capital spending.
E&P companies will have lower operating costs and oilfield services expenses, along with modest hedge protection, and easier access to midstream infrastructure. The broad based reduction and suspension of dividends and share buybacks will also help companies preserve cash flow.
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Fonte: theSundaily - 🏆 25. / 51 Consulte Mais informação »