Stock #4 – CNOOC Ltd. (CEO)
Another great Chinese stock is CNOOC Ltd. (CEO). The company manages China’s offshore oil and gas exploration and production activities, in partnerships with international oil and gas firms.
Under Chinese government-regulated production sharing contracts, CNOOC has the sole right to acquire up to 51% of any successful discovery offshore China made by foreign partners, making it the #1 energy company in the #1 emerging market in the world. That’s a great place to be.
Recently, CNOOC reported a significant drop in profits due to lower oil prices. This is to be expected, considering oil prices were setting new records every day at this time last year. But it’s important to note that CEO’s oil production grew by 16% on the quarter, attributed to underdeveloped foreign fields off Nigeria. This means that as oil prices firm up once more, CNOOC is going to reap bigger and bigger profits.
With economic recovery taking shape and a weak dollar driving up commodity prices, we can be sure oil prices will continue to move up for the rest of 2009 and into 2010. This means big things for CEO shares, so buy in now before shares move even higher!
- Poll of the Day