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Nordea: Subcontractors the big losers following oil drop

Nordea says that one industry in particular will be hit hardest by the dramatic decline in the oil price: The subcontractors, says the bank in a market assessment in which the bank also points to companies that are particularly at risk.

Photo: Øyvind Hagen - Statoil

The biggest losers are not the oil companies themselves, but rather their subcontractors, who have spent years living large on the industry's enormous investment level, says Nordea in a assessment of the offshore sector published Monday, on a day when the oil price dropped even further, this time down to USD 68.

"The collapsing oil price has sent shock-waves through the stock market. A situation such as this has winners as well as losers. The obvious losers are the oil companies, which stand to make less money on the oil they extract from the underground. But the biggest losers are not the oil companies themselves, but rather their subcontractors," says the major Nordic bank.

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