|12 December, 2019

Russian oils: Saudi Aramco can drive investor attention - VTB Capital

Saudi Aramco's earnings sensitivity to oil prices is similar to Russian oils' on the downside, but is relatively limited on the upside

** VTB Capital says that given similarities to Saudi Aramco, Russian oil stocks might see more new investor attention in the future

** Russian oil companies are poised to benefit from a significant capital markets event, such as Aramco IPO, increasing the pool of funds mandated for allocation outside of the calm waters of developed markets, VTB Capital says

** Saudi Aramco's earnings sensitivity to oil prices is similar to Russian oils' on the downside, but is relatively limited on the upside, the brokerage notes

** "Russian oils, with better potential returns to investors and inexpensive valuations, look more attractive to us here", it adds

((anna.pruchnicka@tr.com))

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