Thursday, February 5, 2015

How Crude price impacts these companies

In June of 2014 the Brent Crude Oil Price hit $115 per barrel and many oil market insiders were predicting higher prices. Other analyst however, called a peak, and their predictions proved to be correct. By the beginning of October 2014, the Index dropped to $95 and predictions of further falls down to $90 or even $80 hold sway. What changed?


Crude oil started its sharp fall from October 2014 . Oil price crashed around 50 percent from October to end of January. That means in 4 months oil became half from where it was in October.

How these companies performed in during this oil fall

Jet Air ways

PRICE  UP  BY 150% PERCENT IN LAST 4 MONTHS
Benefits of lower crude prices would help the company to ramp up margins. As they not reduced the tariff their quarterly results to show  good  gain. In addition to that They got a credit upgrade.   The rating upgrade takes into account the improvement in the liquidity and credit profile of the company, arising from improved operating performance as well as support from its strategic partner-Etihad Airways PJSC. The increased EBIT margin improved in these time..

Cairn India
PRICE FELL 25% IN LAST 4 MONTHS 
When crud fell 50 percent Cair India also followed  by shedding 25 percent. Cairn was in way to south from its  52 week high of 386 before the crude fall. So the fall in crude price increased the momentum






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