This year has already started off on a much better foot for Statoil (NYSE: STO )
than its recent stock market experience. Maligned for its high finding
and development costs, its dependence on high oil prices, and its
weaker near-term production growth, Statoil investors had to endure a
frustrating stretch where the short term-obsessed market wasn't willing
to give the company its due.
Now, though, the market appears to be taking a more optimistic view.
The turbulence in Ukraine has drawn attention back to Statoil's position
as the largest supplier of gas to Europe outside of Russia. At the same
time, management has openly turned to a more returns-oriented approach
and has spent the last year upgrading its portfolio and making some
major oil and gas discoveries. Valuation for oil and gas companies may
be frustratingly imprecise, but Statoil seems to be offering a good mix
of improving returns, capital appreciation, and a solid yield.
Read the full article here:
Statoil ASA's Focus on Returns and Higher-Grade Assets Should Pay Off
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