…the June quarter numbers about to be reported by energy companies will make the hit clear, with UBS forecasting June quarter LNG prices slumping as much as 35 per cent from the March quarter, despite a modest recovery in oil prices.
UBS analyst Nik Burns said sales for the larger oil and gas companies would likely hit their lowest point in the June quarter, with LNG-focused Woodside likely seeing a 36 per cent slide in revenues from the March quarter, while Oil Search would see a 35 per cent decline.
From the AFR:
Santos, which has a smaller proportion of its production derived from LNG in advance of the start-up of its $US18.5 billion GLNG venture in Queensland, should not be as severely affected, with UBS estimating its sales will actually climb from the first quarter of the year by 3 per cent.
No surprise there for anyone still breathing. More interesting will be the outlooks for price and whether or not the fruits of cost cutting are appearing in break evens.
