Analysts fear bankruptcy surge in the oil service

Oil platform Troll Paris AgreementOil platform. Photo:
24 of the oil service companies on the Oslo Stock Exchange has had a price drop of over 90 percent. Analysts are expecting a number of bankruptcies to come.
The  newspaper  Finansavisen has gone through the price development of the 42 oil companies in the energy index on the Oslo Stock Exchange. 24 of them have had a price drop of over 90 percent since their peak.
Several analysts the newspaper has talked with, points to the drop in oil prices and overcapacity as causes of the problems. They still expect hard times for the oil companies, but also sees opportunities in the industry.
– Many will go through restructurings, and some will go bankrupt. However, it is probably here the winner of a five-year term is located, says the manager at Storebrand Investments, Hans Thrane John Olaisen, an analyst at ABG Sundal Collier, answer the following if he dares to invest in some of the companies that have fallen by more than 90 percent.
– Most certainly some of them will move upwards like a bullet while many will go bankrupt.
Source: NTB scanpix / Norway Today

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