O&G sentiment could recover in 2H17, says OCBC

SINGAPORE (Nov 30): OCBC Investment Research believes the worst might be over for the oil and gas sector, with less downside risk than a year ago and most of the negatives having been priced in.

“Currently, many companies are now trading at about 0.5x book or lower, with a few exceptions,” says OCBC lead analyst Low Pei Han in a Wednesday report.

The challenge now, Low says, is in “picking companies with the ability to ride the downturn” and “identifying the inflection point in which a sustainable recovery would begin”.

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