For Immediate Release
Chicago, IL – March 23, 2010 – Zacks.com announces the latest Industry Outlook. Today, Zacks Equity Research discusses the Oil & Gas Industry, including Petrobras (PBR), PetroChina Company Limited (PTR), Acergy S.A. (ACGY) and Helmerich & Payne Inc. (HP).
A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/31967/Oil+%26amp%3B+Gas+Industry+Stock+Review+-+March+2010.
The strengthening oil price environment should benefit producers, particularly those international players having attractive growth opportunities in their home markets. Two such standout names are Brazil’s Petroleo Brasileiro S.A. (PBR), or Petrobras, and China’s PetroChina Company Limited (PTR), both of which remain well-placed to benefit from their respective country’s growing appetite for energy.
Petrobras, the largest integrated energy firm in Brazil, stands to benefit from the continuous demand growth in Brazil (expected to outperform developed countries in the next few years). Additionally, we expect the company’s expertise in deep-water operations, huge recent discoveries (which could double its resource base), and the growing domestic refined products market to fuel its medium-term earnings outlook.
China’s impressive economic growth has significantly increased its demand for oil, natural gas and chemicals. This growth momentum presents attractive opportunities for industry players that can meet the country’s fast-growing energy needs. Being one of the two integrated oil companies in China, PetroChina is well-positioned to capitalize on these favorable trends.
Within the oilfield services group, we are positive on London-based Acergy S.A. (ACGY). With a still healthy backlog, significant cash balances and no near-term refinancing requirements, Acergy should be able to weather the challenging business environment. Our favorable recommendation on Acergy ADRs also reflects the company’s strong leverage to the still very favorable outlook for deepwater oilfield activities and the quality of its client base, which mostly includes well-capitalized oil majors or national oil companies.
Another company we like is contract drilling services provider Helmerich & Payne Inc. (HP). With its young, efficient drilling fleet, Helmerich & Payne has been able to snag market share and maintain a relatively higher utilization due to stronger drilling demand — and longer duration of term contracts — for their technologically sophisticated FlexRigs.
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