Europe’s Big Oil sector is set to burn through approximately $20 billion of free cash flow during 2016, and the sector will require almost $10 billion of debt refinancing throughout the year according to a credit research note on the oil industry from Bank of America Merrill Lynch. BoA’s analysts estimate that in the prevailing sub-$60 oil price environment, Big Oil’s organic FCF will remain persistently negative, which gives the industry a “Trilemma” of struggling to achieve its three main through-the-cycle objectives: (1) Maintain dividends, (2) Maintain credit ratings, (3) Maintain resource base. To continue to meet these three primary…
Big Oil: Burning Cash, Running Out Of Time Quickly – BAML
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk