DAVY VIEW

Premier Oil’s trading update contains little to surprise and the steady progress evident over the last few years to increase free cash flow and reduce debt, while at the same time creating a platform of new projects, has continued. At the stock specific level, Premier has clearly performed well. However, the oil sector overall, despite solid oil pricing, has found it hard to make much progress over the last year thanks to trade disputes and lingering fear of US shale production’s impact on future oil prices. That said, within those parameters Premier continues to perform well.