On The Return of Foreign Oil Producers Year-to-Date

Oil prices have soared in the past year with some experts predicting $100 or $80 per barrel this year. The WTI Crude Oil closed at $71.01 for a rise of over 48% in one year. As oil prices rise so do the stocks of most oil producers.

Some of the exchange-listed foreign oil producers have soared by more than 25% so far this year. The table below shows the year-to-date price returns of foreign oil ADRs:

S.No.ADR NameTickerStock Price (as of May 18, 2018)Year-to-Date Change(%)Country
1Petroleo Brasileiro-PetrobrasPBR16.4857.24%Brazil
3China Petroleum & ChemicalSNP102.0840.88%China
4China National Offshore Oil-CNOOCCEO179.1726.73%China
9BPBP47.1912.73%United Kingdom
10Royal Dutch Shell - B SharesRDS.B76.211.04%United Kingdom
11SasolSSL37.9310.76%South Africa
12Royal Dutch Shell - A SharesRDS.A73.338.87%United Kingdom
14Petrobras ArgentinaPZE11.26-16.63%Argentina
15Transportadora de Gas del SurTGS17.81-20.06%Argentina

Note: Returns shown above are based on price only (excluding dividends).

A few observations:

  • The best performer in the above list Brazilian oil major Petrobras(PBR). After a major corruption scandal the stock fell from over $60 a few years and now is on the path to recovery.
  • Colombia’s EcoPetrol(EC) used to be another hi-flier that fell back to earth to trade at below $10 a share. Currently the stock on a nice upward trajectory and as tensions in middle east increase oil producers in other regions rise faster. Ecopetrol paid out a decent dividend earlier this year and could double from current levels by next year.
  • Compared to the performance of emerging market oil producers the developed market companies have not performed very well. For example, Italian oil producer Eni(E) is up 17% and France’s Total(TOT) has shot up by only 16% year-to-date.

For US oil and gas producers check out the following links:

Disclosure: Long EC, PBR

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