Seeking Alpha
Recommended for you:
Growth at reasonable price, long/short equity, foreign companies, master limited partnerships
Profile| Send Message|
( followers)  

The crude oil markets were not affected by this week's weather related closures of the New York Stock Exchange and NASDAQ. As a result crude oil futures were actively changing hands on all five days this week. Oil prices were broadly lower on Monday and then saw a rally followed by a correction on Tuesday. Wednesday saw an early spike upward and then remained relatively flat into midday Thursday. Oil prices spiked again midday Thursday and then began a slow decline that lasted into Friday. Friday saw oil prices plunge rapidly, quickly erasing all of the gains of the whole week and then some.

The overall market, as measured by the S&P 500 index, was closed on Monday and Tuesday this week and so equities were only able to trade hands during the latter half of the week. Wednesday saw the market open with an immediate decline in the index which then recovered later in the day. The index spiked considerably between Wednesday and Thursday and declined slowly from there. The decline accelerated on Friday and plunged more than 10 points in the afternoon. The index closed slightly above where it opened on Wednesday. As usual, this had different effects on the share prices of the six foreign integrated oil and gas stocks that are followed in this weekly series.

Statoil (NYSE:STO) opened at $24.82 on October 31, 2012. The stock closed at $24.38 in after hours trading on November 2, 2012. Stockholders in the company thus suffered from a loss of $0.44 per ADR share or 1.77% over the week. Statoil opened at $25.44 on October 8, 2012. This gives the stock a trailing four-week loss of $1.06 or 4.17%. Statoil was downgraded this week by HSBC Securities. The bank lowered its rating on the stock from neutral to underweight.

STO 5-Day Chart

Source: Fidelity Investments

STO 4-Week Chart

Source: Fidelity Investments

BP plc (NYSE:BP) opened the week at $43.33. The stock closed at $42.60 in after hours trading on November 2. BP's stockholders thus suffered a loss of $0.73 or 1.71% over the week. BP opened at $41.96 on October 8, 2012. Thus, shareholders of BP stock profited from a gain of $0.64 or 1.53% over the trailing four-week period. BP reported quarterly results this week that blew past analysts' estimates. BP also announced a 12.5% hike in its quarterly dividend, raising it to $0.09 per share. Overall, these earnings were quite strong and show that the company's fundamentals are indeed improving.

BP 5-Day Chart

Source: Fidelity Investments

BP 4-Week Chart

Source: Fidelity Investments

Total S.A. (NYSE:TOT) opened on October 31 at $51.27 per share. The stock closed at $50.42 in after hours trading on November 2. This gives ADR shareholders a loss of $0.85 or 1.66% for the week. Total opened on October 8 at $49.86. Thus, stockholders have experienced a gain of $0.56 or 1.12% over the past four weeks. Total reported its third quarter earnings on October 31. The company beat analysts' expectations for revenue but failed to achieve the earnings that were projected for the company. However, operating earnings beat the Zack's consensus estimate. The company managed to increase its liquids production but this was offset by a decline in gas production. The share price decline this week may provide an opportunity for entering a very good and high-yielding name in the oil and gas industry.

TOT 5-Day Chart

Source: Fidelity Investments

TOT 4-Week Chart

Source: Fidelity Investments

Suncor (NYSE:SU) opened on October 31 at $33.43. The stock closed at $34.83 in after hours trading on November 2. This gives the stock a gain of $1.40 or 4.19% for the week. The stock opened on October 8, 2012 at $33.31. Thus, Suncor stock has delivered a profit to its shareholders of $1.52 or 4.56% over the trailing four week period. Suncor Energy announced its third quarter results this week. The company saw earnings decline year over year but also saw its production in the promising Canadian oil sands reach record levels. The company also continued to make progress on its development projects. This all should have the effect of increasing its earnings over the long-term.

SU 5-Day Chart

Source: Fidelity Investments

SU 4-Week Chart

Source: Fidelity Investments

Royal Dutch Shell (NYSE:RDS.A) opened at $69.25 on October 31, 2012. The stock closed at $69.46 in after hours trading on Friday, October 26. Shareholders thus profited from a gain of $0.21 or 0.30% for the week. The stock opened at $69.62 on October 8, 2012. Shareholders thus suffered a loss of $0.16 per share or 0.23% over the trailing four-week period. Royal Dutch Shell announced its third quarter earnings this week. The company's earnings came in higher than the Zack's consensus estimate although they were still down year-over-year, as with many of these other companies.

RDS.A 5-Day Chart

Source: Fidelity Investments

RDS.A 4-Week Chart

Source: Fidelity Investments

Eni (NYSE:E) opened at $46.41 on October 31. The stock closed at $45.64 in after hours trading on Friday, November 2. Shareholders thus suffered a loss of $0.77 or 1.66% for the week. The stock opened at $44.71 on October 8, 2012. Shareholders thus profited from a gain of $0.93 per share or 2.08% over the trailing four-week period. Eni benefited over the latest quarter due to Libyan production coming back online. This makes Eni one of the few large oil and gas companies that saw higher year over year profits this quarter.

E 5-Day Chart

Source: Fidelity Investments

E 4-Week Chart

Source: Fidelity Investments

These six stocks delivered mixed performances over the past shortened week. Investors in two companies saw gains, while investors in the remaining four companies suffered paper losses over the week. The best performer was Suncor Energy, none of the other companies were anywhere close to matching its performance. The only other company that experienced share price gains over the past week is Royal Dutch Shell.

The worst performer was Statoil, although all four companies that suffered losses produced remarkably similar performances. Suncor Energy was also by far the best performer over the trailing four week period. The second best performer was Italy's Eni, but it did not come anywhere close to matching Suncor's gains. The worst performer was Statoil and, like Suncor, none of the others were anywhere close.

Source: Weekly Performance Update On 6 Foreign Integrated Oil And Gas Companies