Q3 Oil Price Rise Lifts Value of Upstream IndependentsDOWNLOAD
30 October 2012: The combined market capitalisation of the Top 25 Upstream Independents rose by 6% over the third quarter in line with an improvement in oil prices.
Deloitte’s National Oil & Gas Leader, Mike Lynn, said that even though the Tapis oil benchmark had lifted by 18% over the quarter, price volatility remained a concern for Australian upstream independents.
“The industry continues to face a challenging outlook on many fronts with an uncertain regulatory environment and ongoing cost pressures compounding the problems associated with pricing volatility.”
Mr Lynn said these challenges had been among the issues contributing to the decline in Origin Energy’s performance this quarter, losing almost $1 billion in market capitalisation.
“Origin Energy has seen a steady decline in share price over the last 12 months, but the biggest fall during the quarter followed the release of Origin’s annual results. However, Managing Director Grant King said the company’s focus was on getting the $23 billion Australia Pacific liquefied natural gas venture in Queensland to market – causing the company to reduce its capital spend in other revenue generating areas,” Mr Lynn said.
In contrast, a number of upstream independents posted significant increases in market capitalisation during the quarter:
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