A Look at Two Oil & Gas ADRs: Repsol and Sasol

Repsol (REP) and Sasol (SSL) operate in the integrated oil & gas and energy & chemical industries.

Out of these two, Sasol is an interesting company since its portfolio of assets is diverse. The company "mines coal in South Africa, produces gas in Mozambique and oil in Gabon, and its chemical manufacturing and marketing operations span the globe". In South Africa, it runs 406 Sasol retail convenience centers and Exel service stations. The average annual earnings growth for Sasol is 27%. Last year Sasol had nearly $20B in total revenues.

Spain-based Resol is "an integrated oil and gas company engaged in all aspects of the petroleum business, including exploration, development and production of crude oil and natural gas." The current yield is 6.32%. The average annual revenue growth rate is about 11%. Resol is an average performer as the earnings grew at 7% annually in the last 5 years. It has a debt to total capital ratio of 43.33% which is in-line with its peers in the integrated oil & gas industry.

Comments

[sligoo:]

Repsol has a significant stake in the Brazilian sub-salt area. This is a BIG plus given the large reserves potential. Between the two companies mentioned, Repsol is the best bet for the future.

Jun 12 07:48 AM

[Igoro:]

Sasol also has significant experience in liquification which has huge potential once the Anthropogenic Global Warming swindle is done away with.

Jun 12 10:19 AM