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Merchant banking specifically designed to satisfy client needs
not ours!

Brandon Hill Capital – back to basics merchant banking

Brandon Hill Capital is a well capitalised and independently minded merchant bank. We exist for one purpose and one purpose only to provide our clients with the capital they need to build their respective businesses. Our strong client focus drives all our efforts to deliver funding solutions for our customers. With an unrivalled reputation in natural resources around the world, we also work across all other mid-market sectors delivering outstanding advice on all aspects of corporate finance and truly insightful equity research, to UK and overseas publicly-quoted companies.

Equity & Debt Financing Solutions

We believe every client requires and deserves a unique solution to their funding needs which is exactly what we deliver. We have a comprehensive range of strategic and advisory equity & debt solutions to private and listed companies from advising on all aspects of company strategy to securing institutional investor irrevocable undertakings.

Institutional and Corporate Sales

Be in no doubt that our sales team know what they are talking about. First and foremost they have the depth of individual and collective experience you would expect of a first class merchant bank. They are also exceptionally bright, articulate and highly driven people. They stand out from most other sales teams because they tell the best, most compelling stories. Our success (raising more than £1,000m since 2005) illustrates just how good we are at selling our clients’ stories. We are extremely confident in our ability to generate a proactive and structured mobilisation of the investment community. We attract the best clients because we have the best sales people.

Oil Price Outlook

More action needed from OPEC in the short term, but medium term outlook for oil prices improving

After an initial positive response to OPEC’s decision to cut production, oil prices have now fallen close to 12 month lows. Restoration of shut-in production from Libya and Nigeria, both outside of OPEC agreed cuts, as well as a stronger than expected recovery in US production, appears to have undermined the supply/demand balance seen in early 2017.

The outlook for 2018 suggests little improvement in the overall balance and we believe OPEC will need to extend the current agreed cuts and perhaps take further action to normalise inventories. In response to lower oil prices and cost inflation there is a possibility US production growth, which is expected to add 1mmbopd in 2018, may also begin to ease, although we would not expect a significant change. This would certainly help sentiment, but without any supply shocks, oil prices will likely remain in a US$40-60/bbl range.

The implication of a low oil price environment has been a collapse in investment targeting conventional oil resources, which due to the time lag between discovery, project sanction and new developments coming onstream, may risk a supply shortfall in the medium term. Due to operational constraints, we believe US unconventional oil is unable expanded quickly enough to bridge this gap alone and OPEC spare capacity is already far from high leaving the industry exposed to periods of higher oil prices and increased volatility in the medium term. Our longer-term view beyond 2030 is more cautious as structural changes in the transportation markets erode oil demand growth and possibly leads to so called ‘peak oil’. As discussed on the following pages, leaders in the automotive and oil industry have quite different views on this and public policy will also play a crucial role.

Due to this uncertainty, we recommended avoiding long duration oil stocks, preferring lower cost producers and short to medium term explorers, where the commercial risks are manageable.

Download the Oil Price Outlook Flashnote