Shell, Statoil and Repsol are to deliver their first quarter results tomorrow.
And global investment bank RBC Capital Markets said it could finally show a change in fortunes for the industry following a tough two years.
Equity analyst Biraj Borkhataria issued a note today with some guidance on what to expect.
He said the consensus over Statoil was that net income would be around $801million, with $4billion in operating cash flow.
Borkhataria added: “Statoil should see multiple tailwinds this quarter, including strong European gas, minimal maintenance, lower cash taxes and a stronger midstream.
“We expect gearing to fall to c32% from 35% last quarter, driven by stronger cash flow generation, a working capital benefit and lower capex, which should be taken positively.
“We expect the focus to be on two key areas: 1) outlook for the cancellation or extension of the scrip programme in 3Q17; as well as 2) Discussion around the recent issues in Brazil and the Carcara acquisition.”
Meanwhile he believes Repsol will report a net income of €538m and operating cash flow €1.1bn.
He described the firm as “relative winner this quarter” due to refining margins alongside a rebound in production and stronger chemicals.
Ramp-ups in Venezuela and Brazil and contribution from restarted production in Libya are expected to boost volumes.
Shell’s net income is expected to be just over the $3billion mark but with no official consensus on operating cash flows.
Around $1billion of recent divestments are expected to figure in the Q1 results.
One possible sticking point, according to RBC, is The Pearl gas to liquids plant based in Ras Laffan, Qatar.
It has been operating at 50% planned capacity since late December when unforeseen maintenance was required on the plant’s gasifier units.
Products in storage will be used to minimize the impact to customer deliveries according to Shell
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