Wood Mackenzie

Seize the day with a beaten-down stock in the midst of sector recovery

SINGAPORE (Jan 16): OCBC Investment Research has upgraded its call on Ezion Holdings from “hold” to “buy” with a fair value estimate of 54 cents.

Although it continues to expect a challenging operating environment for energy equipment and services (E&P) investment companies, the research house is suggesting that longer-term investors “look beyond this” and instead, choose “pick up beaten-down stocks whose negatives have been mostly priced in” such as Ezion.   

Will the O&G industry see a recovery in 2017?

SINGAPORE (Jan 12): Wood Mackenzie expects the oil and gas industry to show signs of recovery during the year, driven by a 3% growth in exploration and production spending to US$450 billion.

Granted, E&P spending still remains 40% below 2014 levels, and reflects a shift to smaller, incremental projects, according to the research firm.

But what is clear is that the industry will be a lot leaner than in the past.

Wood Mackenzie estimates that costs have fallen 20% on average and could fall further by 3% to 7% in 2017.

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