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The Expert View: Aberdeen Asset Management, UTV, Enquest
by Chris Marshall on Aug 28, 2013 at 05:01
Enquest stripped of ‘buy’ recommendation after delays
North Sea oil group Enquest (ENQ.L) is no longer a ‘buy’ for Liberum analyst Kate Sloan, who has downgraded the shares to a ‘(positive) hold’ after the recent announcement of delays to major projects.
The downgrade comes after the oil production company’s recent admission of a delay to the start of its Alma and Galia fields into the first quarter of 2014, from the fourth quarter of 2013.
Sloan noted a ‘solid performance’ from the company’s producing assets. The Kraken field ‘appears to be progressing well’, while the ‘long term growth story appears intact’, notes the analyst.
‘But due to lower cash flow forecasts and uncertainty over Kraken costs / timing, revise our recommendation to a (positive) HOLD. The cash flow growth that drives our positive view on Enquest is a little too far away,’ she concludes.
Shares in Enquest dropped 0.2% to 122p on Tuesday.
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