I bought Statoil (NYSE:STO)
on the idea that this Norwegian energy giant was troubled, but that it
would get its house back in order and deliver on its strong legacy of
profitably developing energy reserves in challenging locations. So far,
not so good. Statoil is one of the worst-performing energy majors over
the past year, rising about 3% while Chevron (NYSE:CVX) has risen 29% and Exxon Mobil (NYSE:XOM), Total (NYSE:TOT), BP (NYSE:BP) are all up about 18%.
Statoil continues to struggle to keep a handle on production costs, and
unplanned outages have wrecked havoc with a relatively fixed operating
expense structure. Though I still believe that Statoil can do better,
and is significantly undervalued on that basis, it's getting harder and
harder to stay patient with the stock.
Please continue here:
http://www.investopedia.com/stock-analysis/060413/statoils-turnaround-proceeding-much-too-slowly-sto-bp-tot-xom.aspx
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