Shares of Anton Oilfield Services (03337) surged more than 5%. At the time of writing, the stock was up 4.4% to HK$0.95, with a turnover of HK$5.131 million.
Geopolitical tensions continue to disrupt oil transportation in the Middle East, with major producers like Iraq and Qatar having previously announced output cuts. Market reports indicate that the Gulf producer, the United Arab Emirates, is planning its first refined oil product pipeline. Concurrently, Iraq is accelerating the construction of a pipeline to bypass the Strait of Hormuz, though questions remain over its timely completion due to fiscal constraints. Reports have suggested Iraq is seeking financial assistance from the International Monetary Fund.
Moody's released a report noting that due to disruptions to its Iraqi operations from Middle East conflicts, Anton Oilfield Services will face short-term pressure on revenue growth in 2026. However, as project execution gradually resumes, revenue is expected to recover in 2027. Growth in the company's domestic operations in China will partially offset this impact, as it benefits from increased upstream spending by Chinese state-owned oil companies aimed at enhancing energy security.
Moody's believes that despite a temporary deterioration, Anton Oilfield Services' leverage remains robust for its current rating category. The agency expects the company to maintain a net cash position, supported by stable cash flow generation, prudent working capital management, and disciplined capital expenditure.
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