SINGAPORE (July 7): Ernst & Young’s recent survey “Capitalizing on opportunities: Private equity investment in oil and gas” found that 43% of the 100 private equity (PE) firms surveyed were planning acquisitions in the oil & gas sector for the first half year period of 2017.
That is up from the 25% figure before the end of 2016.
EY noted that favourable asset valuations and oil price consensus were among the main reasons for the planned acquisitions.
Furthermore, all of the respondents expected the Asia-Pacific region to see higher buyout activity in 2017, given lower costs, ease of doing business, and general macroeconomic growth which was drawing investors to the region.
44% of respondents were also in favour of the upstream or the midstream sectors for the best return on investment.
DBS analyst Ho Pei Hwa observed that the increased PE activity would make the upstream O&G segment more attractive to investors “if one believes that oil prices will recover further”.
“However, we would like to see more non-PE driven M&A activity, especially in the services segment, as that would more likely help spark a rationalisation of assets and capacity,” she writes in a note on Monday.
The oil price keep lower. The company need to restructure their expenses and cut cost. They need to find other sources of income to finance their operation. By this will reduce loss from lower oil price. Don't too depand on oil project.
That is what they said since 1 year ago.. TP 0.80, TP 0.60, TP 0.40, TP 1.00, TP 0.20 But now what price is it now. Then next year they tell you better TP but that was never reached. Don't put too high hopes the higher the hope the harder it fall.
Not looking good for Perisai, touch a new low of 0.220. Adding Global Crude Oil prices on downtrend and no sign of recovery for Perisai, it may drop below 0.200(if unable to support it). Crude oil price recover may need to take a whole lots of years to come as technology advance, too easy for them to find oil.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
albertwarrior
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Posted by albertwarrior > 2016-06-29 21:04 | Report Abuse
Brent $49.01/barrel