European mid-cap oil: H2 to sees more awards after challenging Q2 - Citi

Aker Carbon Capture ASA

02/07/2021 09:42

** Citi says Q2 should be another challenging quarter for
oil services given low utilization and COVID-19 challenges, but
H2 should see higher award activity, the broker says
    ** The broker says it remains bullish on oil prices in H2
and expects prices to remain elevated into 2022 but new supply
should moderate prices into 2023
    ** Citi adds the argument backing its preference for oil
mid-caps more exposed upstream looks less compelling following
their year-to-date outperformance versus oil services and
downgrades Aker BP  AKERBP.OL  to "neutral" from "buy"
    ** The broker says offshore order intake in Q2 looks lower
quarter on quarter due to the Qatar LNG award in Q1; however,
excluding Qatar, order intake is up almost 100% due to large
offshore awards in Brazil
    ** Citi says it sees the best risk-reward at Energean
 ENOG.L  among E&P companies, while Subsea 7  SUBC.OL , Technip
Energies  TE.PA  and Aker Carbon Capture  ACC-ME.OL  are its
preferred picks in oil services



 (Reporting by Aleksandra Majewska)
 ((Aleksandra.Majewska@thomsonreuters.com))