Dear readers,
We are glad to announce of our new website, https://uk.webfg.com. There you will continue to have access to the full content of the Sharecast newswire, alongside an improved and expanded suite of market data and research tools for both the UK and the main international markets. As a first step in the transition to the new site, over coming days and weeks the news and data pages on Sharecast.com will redirect you towards the new website which we earnestly hope you will find even more useful than the current service. Should anyone like to comment or provide constructive criticism on the new layout or what features they would like to see added or deleted, do please send us an e-mail to info@digitallook.com. Lastly, of course, we wish to express our heartfelt gratitude for your support and encouragement over the years as we continued to grow and expand the service.
Very best,
Sharecast

Login/Register

Premier Oil gushes higher on Peel Hunt initiation

Market Buzz

Premier Oil gushes higher on Peel Hunt initiation

Thu, 16 March 2017
Article viewed 514 times
http://stmedia.digitallook.com/web/img/dl/cairn_energy_3_opt.jpg
bool(true)
Premier Oil gushes higher on Peel Hunt initiation
Premier Oil Quote more

Price: 63.25

Chg: -0.75

Chg %: -1.17%

Date: 16:35

(ShareCast News) - Premier Oil gushed higher for the second day in a row on Thursday as Peel Hunt initiated coverage of the stock with a 'buy' rating.
On Wednesday, Premier shares surged after it said it had secured the final lock-up for its refinancing bid.

The brokerage said that with Premier now expected to complete its refinancing in the short term, the focus can shift to delivering value to shareholders through growth and debt reduction.

Peel said that securing extended maturities and covenants will enable Premier to invest in development-led growth while reducing net debt, with its modelling suggesting a reduction of 10% to $2.5bn by the end of 2020.

"The portfolio provides flexibility to outperform our forecasts and we see potential for a share price re-rating as rising production and falling opex are reflected in improved cash flows. We also flag near-term exploration upside."

Peel Hunt recognised that Premier remains highly geared and therefore the share price remains sensitive to further oil price weakness, however it set its target price at 90p, representing 40% upside to the current price.

At 1020 GMT, the shares were up 6% to 67.31p.