Nordic Oil & Oil Services: "Oil demand is not dead", ABG prefers E&P players

Bw Offshore

14/10/2020 12:38

** Oil demand will rebound post-pandemic, ABG Sundal Collier
expects, as will the price -- "oil demand is not dead - at least
not yet," it says
    ** "As COVID-19 eases, unemployment rates will fall, people
will start travelling again and more goods and people will have
to be moved," the broker explains
    ** It advises to buy shares in exploration & production
(E&P) companies while being selective with oil services names
    ** The brokerage sees Q3 improvements for E&Ps and tough
times for oil service companies, as the demand for latter is low
    ** However, the broker notes oil shares and some service
shares offer good risk/reward
    ** ABG has a "buy" rating on, among others, Aker BP
 AKERBP.OL , BW Offshore  BWO.OL , Equinor  EQNR.OL , Noreco
 NOR.OL  and TGS  TGS.OL  
    ** It also takes a more positive stance on Lundin Energy
 LUNE.ST  and upgrades it to "buy" from "hold"
    ** The brokerage keeps "hold" rating on a bunch of Nordic
names, including Akastor  AKAS.OL , Maersk Drilling  DRLCO.CO 
and PGS  PGS.OL , while it sticks to "sell" on Seadrill
 SDRL.OL 
    
    

 ((marta.frackowiak@thomsonreuters.com))