an estimated 3-4% from reported RoCE. Yet, with 2013 registering the first
decline in non-productive capital for a decade are there now signs that yet
another source of returns drag across the oil sector may be at a tipping
point? We think so with our analysis suggesting scope for a 10% uplift to
reported returns over the next five years".
Interestingly, today also the Lex Column in "Oil Change, please" is mentioning
the need to improve capital returns to fill the valuation gap (ENI the company
mentioned in the article, also for the new management)
Short term it could make sense to play the momentum via relative spread and
with outperformance calls SXEP vs cyclical sector like chemical sx4P
WTI:
(Embedded image moved to file: pic05893.gif)
SXEP vs SX4P (Chemicals)
(Embedded image moved to file: pic0712S.gif)
Kind regards,
Pierluigi Amicarella
(Embedded image moved to file: pic03113.gif)
Pierluigi Amicarella
Deutsche Bank (Suisse) SA
Key Client Partner
Prime Tower Hardstrasse 201, 8005 Zurich, Switzerland
Tel.
Fax
Mobile ♦41 791202631
Email
The proposed ideas are being delivered to you by the DBS Key Client Partners
("KCP") EMEA Switzerland desk on your request for discussion purposes only and
strictly on a non advisory basis. The proposed ideas do not create any legally
binding obligation on the part of Deutsche Bank AG and / or its affiliates
("DB"). These ideas are for the consideration of the intended recipients of
this mail only.
NOTE: The KCP EMEA Switzerland desk does not provide investment advice. All
intended recipients are sophisticated, qualified investors within the meaning
of the Swiss Collective Investment Schemes Act of June 23, 2006 (CISA) and
MIFID professionals who understand the strategy, characteristics and risks
associated with the ideas proposed herein and will be able to evaluate it
independently.
The products mentioned in this presentation may not be registered with the
Swiss Financial Market Supervisory Authority (FINMA), and therefore, not
supervised by the FINMA. As a result, you cannot claim any protection for
unregistered products under the CISA. No assurance can be given that the
objectives of the mentioned products/services will be achieved. Moreover, a
decision to invest in the mentioned products may have accounting, tax, legal
and other implications. Therefore, you should discuss and review the content
of this document and the offering documentation of the mentioned products with
your own advisors and/or counsel, and conduct your own investigation to
independently determine the suitability and consequences of such investments
on your own financial circumstances prior to any decision. This document is
confidential and personal to you and is being presented for informational and
CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 102037
CONFIDENTIAL SDNY_GM_00248221
EFTA01447412