Corporate themes from the Q2 2015 results

Rising financial pressures – Q2 earnings were down sharply and gearing rose from 36% to 39% - have contributed to the departure of one leading CEO. Operational results in contrast were strong across the sector with progress on cutting costs yet to hit volumes; production was up 4% year-on-year, and 13 players delivered double digit growth. But life will get tougher still if current low prices persist – just one company is cash flow positive at US$50/bbl Brent in 2016.