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PVD [M-PF -6.6%] - Still searching for a bottom: things to worsen before they improve - Update

We upgrade our rating to MARKET PERFORM as the share price has slid 5% since our last report. EPS is expected to fall by 95% in 2016 while low asset utilization and sliding day rates will bring net margin down to a razor thin 1.7%. We foresee a turnaround in 2017, albeit off a low base, as crude oil prices continue to recover. Our rating remains highly sensitive to oil prices.