Premier Oil share price: what’s the outlook in the wake of strong H1 results?
The British oil and gas company recorded a strong set of half-year results in August, driven by increased production, with analysts expecting the stock to perform in the months ahead.
Premier Oil recorded a sharp increase in its half-year earnings, driven by an increase in production that saw it leave its full-year guidance left unchanged.
The oil and gas company saw its earnings from continuing operations hit $680.2 million, up from $487.8 million over the same period a year prior, with it attributing its performance to improved production, rising oil prices and it adhering to its cost-cutting strategy.
‘The company's strong cash flow is driving debt reduction and the Zama divestment and Sea Lion farm-down processes are targeting further strengthening of the balance sheet, which remains the group's highest priority,' Premier Oil CEO Tony Durrant said.
Peel Hunt upgrades Premier Oil share forecast
Premier Oil shares climbed more than 8% to 77p a share since publishing its half-year results, with the stock up 11% on a year-to-date basis.
Prior to its results, Peel Hunt reiterated its buy investment rating on Premier Oil and raised its price target to 165p, up from 155p.
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Oil price rises on US stockpile decline
Oil prices climbed higher on Wednesday, after the American Petroleum Institute (API) reported that US crude inventories fell further than forecasted.
WTI futures rose by 2.6% to $56.35 a barrel, while Brent futures climbed 2.2% to $60.84.
However, despite the two benchmarks recording their largest intra-day gains over the last 11 trading sessions on Wednesday, both are down WTI futures and Brent crude future are down 4% and 7% respectively on a month-to-date basis.
Oil prices continue to be weighed down by the ongoing US-China trade war, with both threatening to impose higher tariffs on a wide range of goods.
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