Nostrum Oil & Gas

Nostrum Oil & Gas is an independent oil and gas company, engaged in the production, development and exploration of oil and gas. Co. operates three exploration concessions and are primarily conducted through its oil and gas producing subsidiary Zhaikmunai LLP located in Kazakhstan. Zhaikmunai LLP carries out its activities in accordance with the Contract for Additional Exploration, Production and Production-Sharing of Crude Hydrocarbons in the Chinarevskoye oil and gas condensate field for the exploration and production of hydrocarbons in Chinarevskoye oil and gas condensate field.
  • TickerNOG
  • ISINGB00BGP6Q951
  • ExchangeLondon Stock Exchange
  • SectorOil & Gas Producers
  • CountryUnited Kingdom

Analysts

Research Team

WOOD Flash – Nostrum Oil & Gas: coverage under review

We have decided to put our coverage of Nostrum Oil & Gas under review, effective immediately. We caution against using the forecasts, ratings and price target guidance issued previously on the stock.

Philip Morrish

Value Indicator - UK Basic Resources 14102019

Currently '(TM)Value Indicator - UK basic resources' is a value analysis of the Basic Resources super sector of quoted companies on the London Stock Exchange's main market that provides the reader with indicative longer-term target prices.

Philip Morrish

Value Indicator - UK Main Market 14102019

Currently '(TM)Value Indicator - UK main market' is a value analysis of the Basic Resources, Construction & Materials, Telecoms and Utilities sectors of the London Stock Exchange's main market that provides the reader with indicative longer-term target prices.

Kiti Pantskhava

Nostrum Oil: One step closer to debt restucturing

Nostrum Oil reported that the second unsuccessful well in 2019, Well 41, drilled in the North of the company’s only producing asset Chinarevskoye field, did not deliver commercial flow of hydrocarbons. The news comes after Well 42 showed similarly discouraging results.

Research Team

Focus: Romania politics – vote of no confidence passed, what’s next?; Greek banks – Asset Protection Scheme approved; Raiffeisen Int.’s Polish branch – no settlements with clients repaying CHF-indexed mortgage loans

HEADLINES: • Romania politics: vote of no confidence passed, what's next? • Greek banks: Asset Protection Scheme approved • Raiffeisen Int.: Polish branch - no settlements with clients repaying CHF-indexed mortgage loans NEUTRAL • Emlak Konut: 9M19 unit sales well below target NEUTRAL • Severstal: 3Q19 trading update - steel volumes and pricing broadly flat qoq, coking coal volumes up POSITIVE • Nostrum Oil & Gas: news on drilling and licence extensions NEGATIVE • Mobile TeleSystems: might sell Ukrainian segment POSITIVE • Kruk: weak trading statement for 3Q19 NEGATIVE

Kiti Pantskhava

Nostrum Oil: One step closer to debt restucturing

Nostrum Oil reported that the second unsuccessful well in 2019, Well 41, drilled in the North of the company’s only producing asset Chinarevskoye field, did not deliver commercial flow of hydrocarbons. The news comes after Well 42 showed similarly discouraging results.

Kiti Pantskhava

Nostrum Oil: No positive credit triggers in 2019

We downgrade NOGLN 22s and 25s to Sell on the absence of positive triggers that could improve the credit outlook in the next 3-6 months. The H1 19 results and conference call did not answer the question about Nostrum’s ability to ramp up production from c30,000boepd, while Brent trading below US$60/bbl limits the company’s ability to finance an expansionary drilling programme and the second leg of a recently announced acquisition of Stepnoy Leopard licenses.

Kiti Pantskhava

Nostrum Oil & Gas: Upside constrained by uncertainty

Reiterate Hold. In July, S&P downgraded Nostrum Oil to CCC+ from B-, sending bond prices to their all-time lows. Bonds have recovered some of the losses since, but valuations remain cheap for a company that has no short-term liquidity issues and will be free-cash-flow neutral in 2019, according to our forecasts (Table 1). Uncertainty about future production and potential corporate transactions that could result in a change of control will continue to weigh over bond prices. We believe that at current levels, downside risk to NOGLN 22s and 25s is low and upside risk is high. The results of test...

Kiti Pantskhava

Nostrum Oil: The company is on sale

Nostrum says it will consider bids from third parties who want to acquire the company, and is also open to other options including farm-outs of stakes in some assets.

Kiti Pantskhava

Nostrum Oil & Gas: Downgrading to hold

We downgrade the NOGLN 22s and 25s to hold as further growth requires stronger fundamental signals. Nostrum reported Q1 results on 21 May, which, after the publication of an operational update in April, did not add much new information. What was interesting is the conference call that followed.

Research Team

WOOD Flash – Nostrum Oil & Gas: coverage under review

We have decided to put our coverage of Nostrum Oil & Gas under review, effective immediately. We caution against using the forecasts, ratings and price target guidance issued previously on the stock.

Research Team

The Rear-View Mirror – EME markets: Soft performance across markets and sectors in August

EME Equity Market – August 2019 Market performance – pressure on all markets, only the BET flattish. The MSCI EME contracted by 4.9% mom in August, while the ASE index fell by 3.5% and Moscow’s index dropped by 3.8%. Bucharest’s BET index was the only one to rise, if only marginally, by 0.4% mom. The worst performer was Turkey’s ISE30, losing 10.8% mom, while the WIG20 index was down 8.3% mom, the BUX index dropped by 4.1% mom, and Prague’s PX index fell by 2.8% mom.

Research Team

The Rear-View Mirror – EME markets: Another strong month for ASE index, up 7.4% mom

EME Equity Market – May 2019 Market performance – ASE index the best performer, up 7.4% mom in May. In May, the MSCI EME improved by 0.9% mom. The ASE index rose by 7.4% in May, following a mom rise of 7.2% in April; while Moscow’s index gained 4.1%; and Bucharest’s BET index was up 0.6% mom. On the other hand, the worst performer was Turkey’s ISE30, down 4.8% mom; while the WIG20 index saw mom losses of 4.1%; the BUX index fell 3.8% in May; and Prague’s PX index dropped 2.3% mom.

Research Team

The Rear-View Mirror – EME markets: Greek equities stand out in April

EME Equity Market – April 2019 Market performance – Greece up 7.2% mom in EUR terms in April 2019. The MSCI EME gained 2.4% in April, and was outperformed by the Greek ASE index, which rose 7.2%. The second-best performing market in EME was Romania, with the BET index up 5.3% mom, followed by the Russian MOEX (+4.1% mom), the Polish WIG20 (+1.4% mom) and the Hungarian BUX (+1.3% mom). The Czech PX index was flat mom; while the Turkish ISE30 dropped by 4.5% mom, but this was related to the depreciation of the TRY against the EUR, as the index was up 1.2% mom in TRY terms.

Research Team

The Rear-View Mirror – EME markets: Turkish ISE30 plummets in March

EME Equity Market – March 2019 Market performance – Turkish ISE index down 13.9% in March. In March, the MSCI EME remained flat, following February’s 1.6% mom contraction. Bucharest’s BET index was the best performer in March, +4.2% mom; followed by the MOEX index (2.1% mom); the ASE index (+2.0% mom); and Budapest’s BUX (+1.5% mom). In negative territory, the worst performer was the Turkish ISE30, -13.9% mom; while the WIG20 and the Czech PX lost 0.9% mom and 0.5% mom, respectively.

1 director bought

A director at Nostrum Oil & Gas bought 1,538,000 shares at 3.250USD and the significance rating of the trade was 68/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names o...

Ildar Davletshin ...
  • Raffaella Tenconi

EME Macro: Kazakhstan – ready to take off again

Kazakhstan shares many similarities with other emerging and frontier markets, so it is arguably not a unique market for a seasoned investor. Yet, a few things catch our eye each time we travel to this country, and each time we leave convinced that it offers a few compelling investment opportunities that are hard to find elsewhere. In this report, we share our thoughts on the country’s ambitious plans to transform itself from a state-dependent economy, heavily reliant on natural resources, into a modern, vibrant market. We discuss Kazakhstan’s current and future macroeconomic issues, as well as...

Research Team

Focus: Romania politics – vote of no confidence passed, what’s next?; Greek banks – Asset Protection Scheme approved; Raiffeisen Int.’s Polish branch – no settlements with clients repaying CHF-indexed mortgage loans

HEADLINES: • Romania politics: vote of no confidence passed, what's next? • Greek banks: Asset Protection Scheme approved • Raiffeisen Int.: Polish branch - no settlements with clients repaying CHF-indexed mortgage loans NEUTRAL • Emlak Konut: 9M19 unit sales well below target NEUTRAL • Severstal: 3Q19 trading update - steel volumes and pricing broadly flat qoq, coking coal volumes up POSITIVE • Nostrum Oil & Gas: news on drilling and licence extensions NEGATIVE • Mobile TeleSystems: might sell Ukrainian segment POSITIVE • Kruk: weak trading statement for 3Q19 NEGATIVE

Research Team

Focus: CCC’s 2Q19 prelims above expectations, on both P&L and working capital; Dino’s 2Q19 strong and spot on our forecasts; Nostrum Oil & Gas’ 2Q19 results in line with preliminary numbers; Turkish banks – changes in the reserve system

HEADLINES: • CCC: 2Q19 prelims above expectations, on both P&L and working capital POSITIVE • Dino: 2Q19 strong and spot on our forecasts POSITIVE • Nostrum Oil & Gas: 2Q19 results in line with preliminary numbers NEUTRAL • Turkish banks: changes in the reserve system by the Central Bank NEUTRAL • Tauron: write-downs at the mining unit and Weglokoks' CEO comments on Janina • Richter: launches teriparatide biosimilar in Europe NEUTRAL • KGHM: 2Q19E financial results preview - stable EBITDA, despite lower prices (due out today) NEUTRAL • Short News (CDR, CPS, PLY)

Research Team

Focus: upgrading CD Projekt to BUY, with higher PLN 304 PT; Arcelik’s 2Q19 results – in line, FY19E guidance revised down on weaker Turkey market & stronger TRY; Nostrum Oil & Gas’s 2Q19 operational update; PGNiG – preliminary 2Q numbers

HEADLINES: • CD Projekt: hype should make it, not break it (upgraded to BUY) • Arcelik: 2Q19 results - in line; FY19E guidance revised down on weaker Turkey market & stronger TRY NEGATIVE • Nostrum Oil & Gas: 2Q19 operational update • PGNiG: preliminary 2Q numbers, weakness in E&P and distribution • NIS: 2Q19 results review - approaching final phase of main capex cycle NEUTRAL • Bank Millennium: additional takeaways after 2Q19 results • BIM: 1:2 split effective as of 24 July, new price target at TRY 49.2 • National Bank: announces pricing for Project Symbol • Ciech: confirms Romanian pla...

Research Team

Focus: keeping our BUY on Ferrexpo, with higher GBp 303 PT; Alpha Bank – softer 1Q19, due to lower NII; Eurobank – weak first quarter, outlook remains unchanged; Wizz Air’s 4Q FY19 results; Gazprom’s 1Q19 results and conference call

HEADLINES: • Ferrexpo: dividends and growth (stays BUY) • Alpha Bank: softer 1Q19, due to lower NII • Eurobank: weak first quarter, outlook remains unchanged • Wizz Air: 4Q FY19 results NEUTRAL • Gazprom: 1Q19 results and conference call highlights • Famur: 1Q19 EBIT 15% above consensus, new contract won POSITIVE • Famur: first signs of market slowdown may appear in 2H20E NEUTRAL • Sarantis: 4M19 trading update - strong growth, driven by foreign operations POSITIVE • Nostrum Oil & Gas: announces start of hot commissioning at GTU3 POSITIVE • Kety: shareholders approve DPS of PLN 24.0 (6.9...

Research Team

Focus: keeping our BUY on Sberbank, with higher PTs (RUB 277/commons / RUB 235/prefs); Nostrum Oil & Gas’ 1Q19 results in line with preliminary numbers; Inter Cars – 1Q19 beat vs. expectations on other operating income

HEADLINES: • Sberbank: no thrill, but inexpensive (stays BUY) • Nostrum Oil & Gas: 1Q19 results in line with preliminary numbers NEUTRAL • Inter Cars: 1Q19 beat vs. expectations on other operating income, adjusted in line NEUTRAL • Coca-Cola HBC: CCBA franchising process comes to an end • Famur: management proposes PLN 0.36 DPS (a 7.7% dividend yield) POSITIVE • PGNiG: announces dividend proposal of PLN 0.18 • Athens Exchange Group: 1Q19 results review NEUTRAL • Wirtualna Polska: key takeaways from 1Q19 earnings call POSITIVE • EME Strategy: Eurobank added to MSCI Greece from 22 May close...

Philip Morrish

Value Indicator - UK Basic Resources 14102019

Currently '(TM)Value Indicator - UK basic resources' is a value analysis of the Basic Resources super sector of quoted companies on the London Stock Exchange's main market that provides the reader with indicative longer-term target prices.

Philip Morrish

Value Indicator - UK Main Market 14102019

Currently '(TM)Value Indicator - UK main market' is a value analysis of the Basic Resources, Construction & Materials, Telecoms and Utilities sectors of the London Stock Exchange's main market that provides the reader with indicative longer-term target prices.

Philip Morrish

Value Indicator - UK Basic Resources 07102019

Currently '(TM)Value Indicator - UK basic resources' is a value analysis of the Basic Resources super sector of companies on the London Stock Exchange's main market that provides the reader with longer-term indicative target prices.

Philip Morrish

Value Indicator - UK Main Market 07102019

Currently '(TM)Value Indicator - UK main market' is a value analysis of the Basic Resources, Construction & Materials, Telecoms and Utilities sectors of the London Stock Exchange's main market that provides the reader with indicative longer-term target prices.

Value Indicator - UK Basic Resources 30092019

Currently '(TM)Value Indicator - UK Basic Resources' is a value analysis of the Basic Resources super sector of quoted companies on the London Stock Exchange's main market that provides the reader with indicative longer-term target prices.

Nostrum Oil & Gas PLC (NOG) - Oil & Gas - Deals and Alliances Profile

Summary Nostrum Oil & Gas PLC (Nostrum) is an independent oil and gas company. It produces, develops, and explores for oil and gas in the pre-Caspian Basin. The company produces crude oil, stabilized liquid condensate, LPG and dry gas. Nostrum has commercial hydrocarbon reserves in the Ardatovski, Lower Permian, Bobrikovski, Tournaisian, Mulinski, Bashkirian, and Biski-Afoninski reservoirs. It also has interests in oil treatment facilities, raw gas processing units, gas pipelines, rail loading terminals, and oil storage facilities. Nostrum is headquartered in Amsterdam, Noord-Holland, the Net...

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