Key Takeaways

Norne Daily embedded slides

Norne-Daily-05.12.2023

Markets

  • Chinese equities slipped as a reduction in the nation’s mortgage reference rate failed to dispel the gloom surrounding the world’s no. 2 economy
  • Nikkei Index -0.1%; Shanghai Index +0.2%; Hang Seng Index -0.0%
    • The moves in Chinese equities came after domestic banks cut a key reference rate for mortgages by a record amount (3.95%), a sign that the nation was ramping up support for the property sector in a bid to revive demand
    • An index of China developer stocks initially jumped but quickly unwound the bulk of the gains
    • Chinese tech giant Alibaba Group is betting on its overseas businesses while domestic consumption growth remains sluggish
    • Sony is likely to release a refreshed version of the PlayStation 5 this year
  • S&P 500 Futures, 1m -0.3%
    • Capital One Financial Corp. agreed to buy Discover Financial Services in a USD 35bn all-stock deal that will form the largest US credit card company by loan volume
    • Earnings from bellwether Nvidia Corp. Wednesday may provide new impetus for equities as investors try to gauge the strength of the global economy
    • BHP Group, the world’s largest miner, reported USD 6.57bn in underlying profits, less than consensus estimates, and said demand from top customer China was healthy despite weakness in housing

 

Commodities

  • Brent for April is little changed at USD 83.5/b this morning after increasing by USD 0.1/b the last trading day
  • Oil held gains near the highest level in over three months after another Houthi strike in the Red Sea
    • The crew of the Rubymar bulk carrier abandoned the vessel after the attack Sunday evening by two anti-ship ballistic missiles, the first such evacuation since the Yemen-based group started targeting ships late last year.
  • Dutch TTF nat. gas price decreased by 5% and UK NBP nat. gas price decreased by 4% the last trading day

Company & Sector News

  • Aker ASA 4Q23 results
    • NAV NOK 63.2bn (NOK 851/sh)
    • Dividend NOK 15.50/sh
  • Norconsult 4Q23 results
    • Revenues NOK 2,684m (NOK 2,391m 4Q22)
    • Adj. EBITDA NOK 209m (NOK 208m 4Q22)
    • Dividend NOK 1.20/sh
  • BlueNord 4Q23 results
    • Revenues USD 183.6m (USD 229.7m 4Q22)
    • EBITDA USD 95m (USD 139.8m 4Q22)
    • Total hydrocarbon production was 24,900 barrels of oil equivalent per day, compared to 26,900 barrels of oil equivalent per day in 4Q22
    • Bluenord intends to distribute 50-70% of cash flow from operations to shareholders in 2024-2026
    • Depending on the completion of Tyra II according to the current schedule, the first payment is expected to be made by BlueNord in the 3Q24
  • Prosafe operational update:
    • Safe Notos and Safe Zephyrus had utilization of 100% in January

Prosafe continues to experience an increase in enquiries from clients and is optimistic that there will be additional tenders and/or direct awards in the North Sea during Q1 and Q2 2024 with a focus on 2025 onwards