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Buy Soco International at 399p

Tom Winnifrith
Monday 18 March 2013

FTSE 250 listed oil Production Company Soco (SIA) operates in some pretty exotic locations – its production is in Vietnam and its exploration assets are in the sort of African hell holes you’d send your mother-in-law on holiday to. But the financial footing of the company is rock solid as calendar 2012 results published on 11th march make clear. Among the mid-cap oil explorers this shines out by dint of its cash backing and cash generation. This is not something discounted in a 399p share price and the shares should be bought as part of a balanced portfolio of oil producers. This is a safety first share tip but it is interesting.

Net income in 2012 came in a shade below forecast at $207 million – but that still represented a 34% increase on 2011. But cash is what I am looking at here and cashflow from operations was ahead of forecast at $335 million leaving year end cash at $259 million.

on TradingResearchPoint | Comments
About Tom Winnifrith
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Tom Winnifrith is the editor of TomWinnifrith.com. When he is not harvesting olives in Greece, he is (planning to) raise goats in Wales.
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