oil prices
SASOL LTD. (ADR) $46.39 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082-883-9697; www.sasol.com; ADRs outstanding: 645.0 million; Market cap: $29.9 billion; Dividend yield: 3.1%) reports that in its fiscal year ended June 30, 2012, revenue rose 19.0%, to $20.3 billion from $17.1 billion in the previous fiscal year (all figures in U.S. dollars). Earnings per ADR rose 25.8%, to $5.05 from $3.99. Higher oil prices were the main reason for the gains. The U.S. dollar also rose against the South African rand; that pushed up the value of Sasol’s sales outside South Africa. The company plans to build an $8-billion to $9-billion gas-to-liquids (GTL) plant in Louisiana. It has also completed a feasibility study for an $8-billion GTL plant in Alberta....
ALARMFORCE INDUSTRIES, $11.65, symbol AF on Toronto, reports that it attracted more customers and increased its revenue in the latest quarter. However, its earnings fell as it continued to expand its business. In the three months ended July 31, 2012, the company’s sales rose 10.9%, to $11.4 million from $10.3 million a year earlier. Even so, AlarmForce lost $6,589, or nil per share, compared to a profit of $831,342, or $0.07 a share. AlarmForce’s earnings fell because it increased its advertising spending as it expanded into Florida. It also invested more in its VideoRelay system, which it launched in October 2011. VideoRelay lets subscribers watch their homes through their computers and smartphones....
Encana took its present form on December 1, 2009, after the old EnCana Corp. split itself into two new companies: the new Encana, which focuses on natural gas, and Cenovus Energy, which specializes in oil sands. Falling gas prices have pushed Encana’s shares down about 30% since the split. Oil prices have weakened lately, but Cenovus’ shares are up about 14%. ENCANA CORP (Toronto symbol ECA; www.encana.com) is one of North America’s largest natural gas producers. Its reserves should last over 11 years....
SASOL LTD. (ADR) $46.39 (New York symbol SSL; TSINetwork Rating: Extra Risk) (082-883-9697; www.sasol.com; ADRs outstanding: 645.0 million; Market cap: $29.9 billion; Dividend yield: 3.1%) reports that in its fiscal year ended June 30, 2012, revenue rose 19.0%, to $20.3 billion from $17.1 billion in the previous fiscal year (all figures in U.S. dollars). Earnings per ADR rose 25.8%, to $5.05 from $3.99.
Higher oil prices were the main reason for the gains. The U.S. dollar also rose against the South African rand; that pushed up the value of Sasol’s sales outside South Africa.
The company plans to build an $8-billion to $9-billion gas-to-liquids (GTL) plant in Louisiana. It has also completed a feasibility study for an $8-billion GTL plant in Alberta.
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Higher oil prices were the main reason for the gains. The U.S. dollar also rose against the South African rand; that pushed up the value of Sasol’s sales outside South Africa.
The company plans to build an $8-billion to $9-billion gas-to-liquids (GTL) plant in Louisiana. It has also completed a feasibility study for an $8-billion GTL plant in Alberta.
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PASON SYSTEMS $15.76 (Toronto symbol PSI; TSINetwork Rating: Speculative) (403-301-3400; www.pason.com; Shares outstanding: 82.0 million; Market cap: $1.3 billion; Dividend yield: 2.8%) rents equipment for monitoring and managing oil and gas rigs. It also sells communication systems, such as its satellite system, which companies use to remotely collect data from their drilling operations. Pason serves oil and gas producers and drilling contractors throughout Canada, the U.S., Mexico, Argentina and Australia.
In the three months ended June 30, 2012, Pason’s revenue rose 29.8%, to $81.1 million from $62.4 million a year earlier. Cash flow rose 31.5%, to $30.1 million, or $0.37 a share, from $22.9 million, or $0.28.
Even with declining oil prices and continued low gas prices, drilling activity rose 6% in Canada and the U.S. in the latest quarter, with a combined 188,291 active days and a rig count of 2,069, compared to 177,791 days and 1,954 rigs a year earlier.
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In the three months ended June 30, 2012, Pason’s revenue rose 29.8%, to $81.1 million from $62.4 million a year earlier. Cash flow rose 31.5%, to $30.1 million, or $0.37 a share, from $22.9 million, or $0.28.
Even with declining oil prices and continued low gas prices, drilling activity rose 6% in Canada and the U.S. in the latest quarter, with a combined 188,291 active days and a rig count of 2,069, compared to 177,791 days and 1,954 rigs a year earlier.
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SHAWCOR LTD., $41.85, Toronto symbol SCL.A, jumped 18% this week after it announced that it will conduct a strategic review of its operations. This could lead to a sale of some of its businesses or the entire company. ShawCor makes sealants and coatings that keep oil and natural gas pipelines from rusting. It also manufactures industrial products, such as electrical wire and protective sheaths. The family of ShawCor’s founder controls the company through multiple-voting shares, which give them 63% of the total votes. It was their desire to sell their holdings that led to the strategic review....
Encana took its present form on December 1, 2009, after the old EnCana Corp. split itself into two new companies: the new Encana, which focuses on natural gas, and Cenovus Energy, which specializes in oil sands. Falling gas prices have pushed Encana’s shares down about 30% since the split. Oil prices have weakened lately, but Cenovus’shares are up about 14%. ENCANA CORP $21.36 (Toronto symbol ECA; Shares outstanding: 736.3 million; Market cap: $15.7 billion; TSINetwork Rating: Average; Dividend yield: 3.9%; www.encana.com) is one of North America’s largest natural gas producers. Its reserves should last over 11 years. Encana’s cash flow was $1.08 a share in the three months ended June 30, 2012 (all amounts except share price and market cap in U.S. dollars). That’s down 27.0% from $1.48 a share, a year earlier....
CRESCENT POINT ENERGY CORP. $39.62 (Toronto symbol CPG; Shares outstanding: 329.1 million; Market cap: $13.0 billion; TSINetwork Rating: Extra Risk; Dividend yield: 7.0%; www.crescentpointenergy.com) produces oil and natural gas in western Canada. Its production is weighted 91% toward oil and 9% to gas.
The company continues to focus on its Bakken light-oil development in southeastern Saskatchewan.
In the three months ended March 31, 2012, Crescent Point’s cash flow per share rose 21.8%, to $1.34 from $1.10. The company’s shares yield a high 6.8%. Crescent Point paid out just 53% of its cash flow as dividends in the latest quarter, so its current dividend rate looks sustainable.
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The company continues to focus on its Bakken light-oil development in southeastern Saskatchewan.
In the three months ended March 31, 2012, Crescent Point’s cash flow per share rose 21.8%, to $1.34 from $1.10. The company’s shares yield a high 6.8%. Crescent Point paid out just 53% of its cash flow as dividends in the latest quarter, so its current dividend rate looks sustainable.
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Our three-part Successful Investor investment approach is a starting point to success in investing, not a step-by-step blueprint. Just to refresh your memory, here are the three key points to our Successful Investor approach:
- Invest mainly in well-established companies, with a history of sales if not earnings and dividends.
- Spread your money out across most if not all of the five main economic sectors: Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities.
- Downplay or avoid stocks in the broker/media limelight. Instead, look for stocks with hidden value that are less widely recognized as attractive investments.
CENOVUS ENERGY INC. $32 (Toronto symbol CVE; Conservative Growth Portfolio, Resources sector; Shares outstanding: 755.7 million; Market cap: $24.2 billion; Price-to-sales ratio: 1.3; Dividend yield: 2.8%; TSINetwork Rating: Extra Risk; www.cenovus.com) operates three heavy oil projects in Alberta and one in Saskatchewan. It gets about half of its output from the oil sands. Conventional oil and natural gas wells supply the other half.
U.S.-based ConocoPhillips (New York symbol COP) owns 50% of Cenovus’s main Foster Creek and Christina Lake oil sands projects in Alberta.
These properties produce heavy bitumen, which Cenovus ships to its 50%-owned refineries in Illinois and Texas. ConocoPhillips recently spun off its refining operations as a separate company called Phillips 66 (New York symbol PSX). This new firm owns the other 50% of these refineries.
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U.S.-based ConocoPhillips (New York symbol COP) owns 50% of Cenovus’s main Foster Creek and Christina Lake oil sands projects in Alberta.
These properties produce heavy bitumen, which Cenovus ships to its 50%-owned refineries in Illinois and Texas. ConocoPhillips recently spun off its refining operations as a separate company called Phillips 66 (New York symbol PSX). This new firm owns the other 50% of these refineries.
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