Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Premier Oil earnings – can the share price keep rallying?

Premier Oil’s recovery has a long way to go, as does its repair of the balance sheet. But rising oil demand offers the hope of a brighter year ahead.

Video poster image

When does Premier Oil report earnings?

Premier Oil reports earnings for its 2020 financial year on 18 March.

Premier Oil earnings – what does the City expect?

Premier Oil is forecast to report a headline loss per share of 58.1 cents, while revenue is expected to decline 35.6% to $1.02 billion.

Oil companies are of course tethered to the oil price. Premier Oil has suffered as a result of the gyrations in crude last year, but has now nearly tripled from the low of November last year as the oil price rebound gathered pace. Continued price rises will underpin a more bullish outlook for the stock, although Premier Oil’s huge debt pile may deter investors. Its merger with Chrysaor may well help to turn the firm around and provide it with better financials, but it is still a long road ahead for Premier.

For now, the outlook is better thanks to the recovery in oil demand, but the price will also be influenced by the supply outlook which may become less bullish as producers bolster their output to take advantage of higher prices.

How to trade Premier Oil earnings

The average move on results day for Premier Oil shares is 5.4%. Meanwhile, the eight analysts covering the stock have one ‘buy’ rating, six ‘holds’ and one ‘sell’, with a median target price of 27.6p as opposed to the 12 March closing price of 30.61p.

Premier Oil share price – technical analysis

It has been a year of downs and ups for Premier Oil. After rebounding from the March low it hit resistance at 54p and then slumped to a new low at 10.8p.

Since then it has rebounded impressively, although late November to late January saw an extended consolidation as the price battled around trendline resistance. From the end of January it has surged once again, returning to the 31p area that has marked such a key period of resistance over the last 12 months.

Premier Oil chart Source: ProRealTime
Premier Oil chart Source: ProRealTime

High debt clouds outlook

Premier Oil will have to spend an extended period rebuilding its balance sheet, and will have to hope that rebound in oil demand will continue into the rest of 2021. The shares have enjoyed a good rally from the 2020 lows, remaining in an uptrend since November, but there is still a long way to go to recover the losses of early 2020.

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Speculate on commodities

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years
Find out more

1In the case of all DFBs, there is a fixed expiry at some point in the future.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.