Sterling Resources falls as costs rise at North Sea field
(Reuters) - Shares of Canada's Sterling Resources Ltd (SLG.V: Quote) fell as much as 17 percent on Tuesday, after the company said it expects costs to rise at its Breagh gas platform in the North Sea.
The company, which owns 30 percent of the Breagh project, said costs could rise to as much as 595 million pounds ($941 million).
"News that the Breagh gas development is facing cost and schedule overruns is likely to weigh on the stock in the near term," RBC Capital Markets analyst James Hosie said in a note and cut his price target on the stock to C$3.00 from C$3.25.
NBF Financial lowered its price target on Sterling's stock to C$2.85 from C$3.20, citing the potential impact of cost overruns and delays to first gas at Breagh and the subsequent delay to other projects.
RWE Dea (RWEG.DE: Quote) is the operator of the Breagh gas field and holds the remaining 70 percent stake.
Shares of Calgary, Alberta-based Sterling touched a low of C$1.10 on the Toronto Stock Exchange on Tuesday morning. They were later trading down 10 percent at C$1.16.
(Reporting by Maneesha Tiwari in Bangalore; Editing by Joyjeet Das)
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