EnergyOil & Gas
Premier Oil PLC

Barclays says Premier Oil is “back on track”

Barclays continues to rate Premier Oil as 'overweight' and a new price target is set at 135p

oil and gas operations
Hosie forecasts Premier Oil’s cash flow rising to around US$470mln in 2019

Barclays Capital described Premier Oil PLC (LON:PMO) as being “back on track”, although its price target for the oiler reduced somewhat.

The bank’s rating was retained as ‘overweight’ while a new target was set at 135p, down from 145p.

WATCH: Premier Oil in a strong position to generate significant free cash flow

“We view Premier as an attractive option for investors seeking exposure to further improvement in medium-term oil prices,” Barclays analyst James Hosie said in a note.

He added: “Using our base oil price assumptions we forecast Premier can generate free cash flow of around $300m in 2018E, bringing its leverage ratio back below management's target of 2.5x ahead of schedule.”

Hosie forecasts Premier Oil’s cash flow rising to around US$470mln in 2019.

“Investors can anticipate a debt refinancing and possibly the reintroduction of shareholder returns alongside disciplined investment in opportunities to create further value,” Hosie added.

Quick facts: Premier Oil PLC

Price: £0.72

Market: LSE
Market Cap: £594.35 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...



JCurve Solutions further expands into Asia as part of new growth strategy

JCurve Solutions (ASX:JCS) chief executive officer Stephen Canning updates Proactive Investors on its further expansion into the asian market, with a new base recently announced in Manila, Philippines. The cloud technology and service provider now holds officers in Sydney, Melbourne,...

7 hours, 2 minutes ago


Holding(s) in Company

1 day, 2 hours ago

Holding(s) in Company

4 days, 20 hours ago

Director/PDMR Shareholding

2 weeks, 5 days ago

Holding(s) in Company

3 weeks, 2 days ago

Holding(s) in Company

3 weeks, 6 days ago

2 min read