Core Viewpoint - NCS Multistage (NCSM) is currently outperforming its peers in the Oils-Energy sector, with a year-to-date performance of approximately 42.5% compared to the sector average of 4% [4]. Company Performance - NCS Multistage is part of the Oils-Energy sector, which consists of 240 individual stocks and holds a Zacks Sector Rank of 13 [2]. - The Zacks Rank for NCS Multistage is 1 (Strong Buy), indicating a positive outlook based on earnings estimates and revisions [3]. - Over the past three months, the Zacks Consensus Estimate for NCSM's full-year earnings has increased by 62%, reflecting improved analyst sentiment [4]. Industry Comparison - NCS Multistage belongs to the Oil and Gas - Field Services industry, which includes 23 companies and currently ranks 211 in the Zacks Industry Rank. This industry has seen a decline of about 5.4% year-to-date, highlighting NCSM's superior performance [6]. - In contrast, another Oils-Energy stock, Sasol (SSL), has returned 37.9% year-to-date and belongs to the Oil and Gas - Integrated - International industry, which ranks 39 and has increased by 6.1% this year [5][6]. Future Outlook - Investors interested in Oils-Energy stocks should monitor NCS Multistage and Sasol, as both companies are expected to maintain their strong performance [7].

Core Insights - The company is taking decisive actions to reshape its future, focusing on cost containment, optimized capital spending, and strengthening its balance sheet, despite a complex global environment [1] - Free cash flow after tax, interest, and capital expenditure increased by 75% to R12.6 billion, indicating strong financial performance [1] - Turnover decreased by 9% to R249 billion due to a 15% decline in Rand oil prices and lower sales volumes [2] - Adjusted EBITDA declined by 14% to R51.8 billion, reflecting the challenging market conditions [2] - Total impairments significantly decreased to R20.7 billion from R74.9 billion in the prior year, with management actions improving recoverable amounts [3] - Basic earnings per share increased by over 100% to R10.60, while headline earnings per share improved by 93% to R35.13 [4] - The balance sheet was strengthened with net debt declining by 13% to R65.0 billion (US$3.7 billion) [5] - Liquidity was enhanced through the successful closure of a R5.3 billion floating rate bond [6] Financial Metrics - Turnover: R249 billion, down 9% from the previous year [7] - Adjusted EBITDA: R51.8 billion, down 14% [7] - Basic EPS: R10.60, up over 100% from a loss of R69.94 [7] - Headline EPS: R35.13, up 93% [7] - Capital Expenditure: R25.4 billion, down 16% [7] - Free Cash Flow: R12.6 billion, up 75% [7] - Net Debt: R65.0 billion, down 13% [7] Asset and Liability Overview - Total assets decreased slightly to R359.6 billion, down 1% [8] - Total liabilities increased by 7% to R201.9 billion [8] - Total equity increased by 7% to R157.6 billion [8] Dividend Policy - No dividend was declared as net debt was above the sustainable threshold of US$3 billion [9] Board Changes - Ms. Xikongomelo Maluleke appointed to the Audit Committee and Safety, Social and Ethics Committee [10]

Financial Data and Key Metrics Changes - Adjusted EBITDA for FY 2025 decreased by 14% to R52 billion, reflecting a challenging macroeconomic environment [16][32] - Free cash flow improved by more than 70% compared to the prior year, reaching almost ZAR 12.6 billion, driven by disciplined capital spending and lower tax payments [35][36] - Net debt was reduced to $3.7 billion, achieving the target of staying under $4 billion, marking the lowest level since 2016 [12][33] Business Line Data and Key Metrics Changes - In the South African business, adjusted EBITDA increased by 15% in mining and 35% in gas, while fuels declined by 38% due to lower refining margins and production volumes [38] - International chemicals saw adjusted EBITDA increase to $411 million, with an improved margin from 6% to 9% [23][39] - The Southern Africa value chain's breakeven price ended at $59 per barrel, supported by disciplined cost management [12][34] Market Data and Key Metrics Changes - The macroeconomic environment was highly volatile, influenced by global tariffs and geopolitical tensions, impacting various business segments differently [34] - The chemical segments benefited from stronger U.S. ethylene margins and a 5% uplift in the overall chemicals basket price [34] Company Strategy and Development Direction - The company is focused on strengthening its foundation, growing, and transforming the business, with a particular emphasis on emission reduction and renewable energy [10][46] - Strategic initiatives include optimizing asset utilization, improving profitability through market focus, and cost efficiency [23][24] - The company aims to achieve a 30% reduction in greenhouse gas emissions by 2030, with significant progress in renewable energy projects [48][51] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the operating environment but expressed confidence in the execution of strategic plans [10][30] - The company is committed to improving cash generation and accelerating deleveraging while focusing on safety and customer-centric solutions [28][30] Other Important Information - The company invested R600 million in social programs and contributed R44 billion in direct and indirect taxes globally [26][27] - Recent executive leadership changes were announced, with new appointments aimed at addressing both short and long-term goals [21][22] Q&A Session Summary Question: CapEx savings and future guidance - Management explained that CapEx came in below guidance due to a rigorous approach, deferring low-risk activities to the following year, and optimizing capital spending [56][64] Question: Gas volumes and impairment calculations - Management clarified that while gas volumes from Mozambique are expected to increase, the impairment was due to changes in the WACC rate linked to country risk [58][67] Question: Outlook for chemical prices - Management indicated that the chemical basket prices are expected to remain resilient, with ongoing efforts to optimize the commercial strategy [88][96] Question: Debt reduction strategy - The company plans to prioritize deleveraging by using excess cash to reduce gross debt and improve net debt position, targeting a net debt of $3 billion by FY 2027-2028 [91][96]

Financial Data and Key Metrics Changes - Adjusted EBITDA for the period decreased by 14% to R52 billion, reflecting a challenging macroeconomic environment [15][30] - Free cash flow improved by more than 70% compared to the prior year, reaching almost ZAR 12.6 billion, a 75% increase [33][34] - Net debt was reduced to $3.7 billion, achieving the target of staying under $4 billion, marking the lowest level since 2016 [12][31] Business Line Data and Key Metrics Changes - In the South African business, mining EBITDA increased by 15%, while gas EBITDA rose by 35% due to higher gas prices and sales volumes [37] - Fuels segment saw a decline of 38% due to weaker rand oil prices and lower refining margins [37] - International Chemicals increased its share of group adjusted EBITDA from 9% to 15%, driven by improved U.S. Ethylene margins and stronger palm kernel oil pricing [38] Market Data and Key Metrics Changes - The macroeconomic environment was highly volatile, influenced by global tariffs and geopolitical tensions, impacting various business segments differently [32] - The chemical segments benefited from stronger U.S. Ethylene margins and a 5% uplift in the overall chemicals basket price [32] Company Strategy and Development Direction - The company is focused on strengthening its foundation, resetting international chemicals, and restoring the South African value chain [8][26] - A commitment to a 30% reduction in greenhouse gas emissions by 2030 is part of the strategic roadmap, with significant progress in renewable energy initiatives [47][50] - The company aims to improve cash generation to accelerate deleveraging while advancing its growth and transformation agenda [27][40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the operating environment but expressed confidence in the execution of strategic plans [9][26] - The focus remains on safety, operational reliability, and optimizing capital allocation to navigate ongoing macro volatility [28][41] - Future guidance includes maintaining cost and capital discipline while targeting further reductions in net debt [43][44] Other Important Information - The company invested R600 million in social programs globally, supporting over 250 students and contributing to community infrastructure projects [24][25] - The upcoming retirement of key executives marks a transition in leadership, with new appointments aimed at addressing both short and long-term goals [19][20] Q&A Session Summary Question: CapEx savings and guidance for FY 2026 - The company achieved CapEx below guidance due to a rigorous approach, deferring low-risk activities and optimizing capital spend [56][64] - Guidance for FY 2026 remains similar to FY 2025 despite no shutdown, with expectations for increased volumes from the destoning plant [56][64] Question: Gas volumes and impairment calculations - Gas volumes from Mozambique are expected to ramp up, but total recoverable gas volumes were revised down due to changes in the WACC rate [58][66] - The commissioning of the integrated processing facility is on track, but delays in the CTT project have been encountered [58][73] Question: Outlook for chemical prices and debt reduction - The company is focused on deleveraging, using excess cash to reduce gross debt and improve net debt position [92] - The effective tax rate has increased due to non-permissible deductions, impacting overall tax payments [80]

Financial Performance - Adjusted EBITDA decreased by 14% to R52 billion due to lower oil prices, weaker refining margins, a stronger Rand/USD exchange rate, lower production volumes, and a lower-for-longer chemicals outlook[17] - Free cash flow increased by 75% to R126 billion[17] - Capital expenditure decreased by 16% to R25 billion[17] - Net debt is at US$37 billion, targeting below US$4 billion[12, 27] Business Operations - Southern Africa operations are focused on improving cost competitiveness, with a target of US$55-60/bbl breakeven and 70-72mt SO production in FY26[19] - International Chemicals business saw an Adj EBITDA uplift of over US$120 million compared to FY24, with a FY26 target of US$450-550 million and an Adj EBITDA margin of 10-13%[20] - Mining saleable production is targeted at 28-30mt, with coal quality sinks at 12-14%[67] Sustainability and Social Contribution - Approximately R44 billion was paid in global direct and indirect tax[22] - Over R660 million was spent globally on social investment programs[22] - Net GHG emission reduction of approximately 20% off the FY17 baseline[75] FY26 Outlook - Capital expenditure is projected to be R24-26 billion[49] - Net debt is expected to remain below US$37 billion[49] - Working capital is targeted at 155-165%[49]

Core Viewpoint - Sasol (SSL) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [3][4]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [3]. Sasol's Earnings Outlook - Sasol's earnings estimates have been rising, with the Zacks Consensus Estimate for the fiscal year ending June 2026 projected at $1.83 per share, showing no year-over-year change [7]. - Over the past three months, the Zacks Consensus Estimate for Sasol has increased by 18.1%, reflecting a positive outlook for the company's earnings [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6]. - The upgrade of Sasol to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].

Core Viewpoint - Sasol expects a significant increase in earnings per share (EPS) by more than 100% compared to the prior year, while adjusted earnings before interest, tax, depreciation, and amortization (adjusted EBITDA) is projected to decrease by 10% to 17% [1][3]. Financial Performance - Adjusted EBITDA is anticipated to be between R50 billion and R54 billion, down from R60 billion in the previous year [1]. - EPS is expected to rise to between R7.00 and R12.00, compared to a prior year loss per share of R69.94 [3]. - Headline earnings per share (HEPS) is projected to increase by 85% to 100%, reaching between R33.60 and R36.30, up from R18.19 in the prior year [3]. Factors Influencing Earnings - The increase in earnings is attributed to higher average chemicals basket prices and strict cost control measures [3]. - Significant impairments decreased from R74.9 billion in the prior year to R20.7 billion in the current year [3]. - The derecognition of a deferred tax asset of R15.3 billion from the prior year is noted, primarily related to Chemicals America operations [3]. - A net cash settlement of R4.3 billion from Transnet SOC Limited and a reduction in asset rehabilitation provision of R2.9 billion were also contributing factors [3]. Market Conditions - There was a 15% decline in the average Rand per barrel of Brent crude oil price, alongside a significant drop in refining margins and fuel price differentials [3]. - Sales volumes decreased by 3% due to lower production and/or market demand [3]. Impairments and Reversals - The Secunda and Sasolburg liquid fuels refinery cash generating units remain fully impaired, with recoverable amounts affected by lower macro-economic forecasts [3]. - Impairments included R4.4 billion for the Production Sharing Agreement (PSA) and PT5-C exploration assets in Mozambique, and R3.2 billion for Italy Care Chemicals CGU [3]. - A reversal of impairment of R1 billion was noted for the China Care Chemicals CGU due to improved business results [3].

Summary of Global Oil and Gas Valuation Report Industry Overview - The report focuses on the **Global Oil and Gas** industry, providing insights into major companies and market dynamics as of **July 18, 2025** [1][2]. Key Companies Mentioned - **India**: Bharat Petroleum, Hindustan Petroleum, Indian Oil, ONGC, Reliance Industries - **Europe**: BP, BW LPG, Ceres Power, ENI, Fuchs Petrolub, Galp, Industrie De Nora, ITM Power, MOL, Motor Oil - **North America**: Aemetis, Antero Resources, APA Corp, Chevron, ExxonMobil, Halliburton, Suncor Energy, Valero Energy - **China**: CNOOC, Petrochina, Sinopec - **Saudi Arabia**: Saudi Aramco - **Others**: Companies from South Africa, Thailand, South Korea, Japan, Australia, and Latin America are also included [2]. Core Insights and Arguments - **Valuation Metrics**: The report provides various valuation metrics such as **EV/DACF**, **FCF Yield**, and **P/E Ratios** for major oil companies, indicating their financial health and market performance [9]. - **Performance Ratings**: Companies are rated based on their performance, with **Chevron** and **ExxonMobil** receiving "Buy" ratings, while **Equinor** is rated as "Sell" [9]. - **Growth Projections**: The report includes **CAGR** estimates for 2024-2027, indicating expected growth rates for different companies, with **Cenovus Energy** projected to have a **78%** upside potential [9]. - **Market Trends**: The report highlights trends in the oil and gas sector, including shifts towards renewable energy and the impact of geopolitical factors on oil prices [6]. Important but Overlooked Content - **Analyst Conflicts of Interest**: The report discloses potential conflicts of interest due to UBS's business relationships with covered companies, which may affect the objectivity of the analysis [4][5]. - **Macro Assumptions**: The report includes macroeconomic assumptions that underpin the valuations, sourced from reputable databases like Bloomberg and Reuters [6]. - **Definitions and Metrics**: Key financial metrics and definitions are provided to ensure clarity in the analysis, such as the **Nelson Complexity Index** for refining capacity [8]. Conclusion - The **Global Oil and Gas Valuation Report** provides a comprehensive analysis of the industry, highlighting key players, financial metrics, and growth projections while also addressing potential conflicts of interest and macroeconomic assumptions that could influence investment decisions [1][2][4][5][9].

Core Insights - The article compares two companies, Sasol (SSL) and Vista Energy, S.A.B. de C.V. (VIST), to determine which is a better investment opportunity for undervalued stocks [1] Valuation Metrics - Sasol has a forward P/E ratio of 2.75, while Vista Energy has a forward P/E of 8.90 [5] - Sasol's PEG ratio is 0.17, indicating a favorable earnings growth outlook compared to Vista Energy's PEG ratio of 1.89 [5] - Sasol's P/B ratio stands at 0.41, contrasting with Vista Energy's P/B of 2.72 [6] Investment Ratings - Sasol currently holds a Zacks Rank of 1 (Strong Buy), whereas Vista Energy has a Zacks Rank of 5 (Strong Sell) [3] - Based on the valuation metrics and earnings outlook, Sasol is considered the superior value option compared to Vista Energy [6]

Investment Rating - The report provides a "Neutral" rating for BP and Eni, while it assigns a "Buy" rating to Chevron, ExxonMobil, Shell, TotalEnergies, GALP, OMV, and Cenovus Energy, indicating a positive outlook for these companies [10]. Core Insights - The report highlights that the global oil and gas sector is expected to experience a compound annual growth rate (CAGR) of 6.5% from 2024 to 2027, driven by increasing demand and recovering prices [10]. - The Brent front month price is projected to stabilize around $65.99 per barrel in 2025, while WTI is expected to be at $62.13 per barrel, reflecting a recovery from previous lows [7]. - Refining margins are anticipated to fluctuate, with European composite margins expected to average around $5.00 per barrel in 2025, indicating a challenging environment for refiners [7]. Summary by Sections Company Ratings and Projections - BP: Current price at 393.0, target price 400, with a 2% upside and a Neutral rating [10] - Chevron: Current price at 148.19, target price 177, with a 19% upside and a Buy rating [10] - ExxonMobil: Current price at 113.19, target price 130, with a 15% upside and a Buy rating [10] - Shell: Current price at 2,698, target price 2,900, with a 7% upside and a Buy rating [10] - TotalEnergies: Current price at 54.90, target price 60.0, with a 9% upside and a Buy rating [10] - Eni: Current price at 14.26, target price 13.0, with a -9% downside and a Neutral rating [10] - Cenovus Energy: Current price at 14.64, target price 25, with a 71% upside and a Buy rating [10] Market Assumptions - The report outlines macro assumptions for commodity prices, with Brent and WTI prices expected to stabilize in 2025 [7]. - The report also discusses refining margins, indicating a challenging environment for refiners with European margins projected at $5.00 per barrel [7]. Performance Metrics - The report includes performance metrics such as EV/DACF, FCF yield, and P/E ratios for major oil companies, providing a comprehensive view of their financial health and market positioning [10].