|Day's Range||2.5500 - 2.5500|
Nov.11 -- Patrick Pouyanne, Total SA chief executive officer, discusses the outlook for global oil markets in 2020 with Bloomberg's Manus Cranny on "Bloomberg Markets."
The S&P 500 stock index has famously averaged a return of just under 10% over the past near-century -- a great rate in an economy where the average bank account is still paying just 0.05%!Of course, even 10% is just the average. Some stocks go up more than that, some go up less. Some years are better for stock returns, some are worse. So what can you do you increase your odds of getting a great return on your stock investment?I've got one word for you: Dividends.Buy a stock with a great dividend yield -- significantly higher than what the average S&P stock pays -- and you've gone a long way towards ensuring that your total profits in a given year are at least average, and maybe significantly above average.With this goal in mind, we've employed the Stock Screener at TipRanks to dig up for us a few likely candidates -- stocks paying generous dividend yields of 5% or better, and stocks scoring a "strong buy" rating from Wall Street analysts to boot.Enterprise Products Partners (EPD)First up is oil and natural gas pipeline operator Enterprise Products Partners, and of the three this one offers income investors the biggest dividend yield: 6.8%. EPD is also one of the biggest players in its industry, owning and operating pipelines for the transport of oil, gas, and petrochemicals stretching some 49,000 miles in combined length, with storage and processing facilities besides.Little wonder that Evercore ISI analyst Dan Walk calls EPD a "bellwether" for the midstream energy industry. In a recent research note, Walk hailed EPD's earnings beat in its recent Q3 earnings announcement, arguing that "EPD's scale and integration across the value chains of all three hydrocarbon streams provide unmatched flexibility to adapt to an ever-shifting environment." The analyst was particularly impressed by EPD's decision to expand its pipelines, adding potentially as much as almost 1 billion barrels per day in transportation capacity for the business.As a result, Walk reiterated an Outperform rating on EPD stock along with a $32 price target, which implies about 25% upside from current levels. (To watch Walk's track record, click here)Wolfe Research analyst Keith Stanley was also enthusiastic, noting that EPD is forging "full speed ahead" with its "superior integrated, demand-driven growth platform," even as rivals have "pulled back." Echoing Walk's sentiment, Stanley rates the stock an Outperfom, while maintaining a $33 price target.Overall, the Street sentiment on EPD stock is similarly positive, with three out of three analysts who have issued ratings on the stock in the last three months rating the stock "buy." With an average price target of $33.33, these analysts see 29% upside in the stock over the next 12 months -- before counting the dividend. (See EPD stock analysis on TipRanks)Total (TOT) Farther up the oil industry food chain we find French oil giant Total, a true giant of the industry with annual revenues approaching $180 billion. Total's 5.3% dividend yield -- more than twice as generous as the average dividend on the S&P 500 -- is no slouch either.In a recent research note, Cowen analyst Jason Gabelman predicted that Total's production growth "should exceed peers significantly over the next three years... with materially better cash margins... and rising FCF." The analyst noted that in Q3, Total "beat" on earnings and generated $6.6 billion in free cash flow as well -- $1.2 billion more than Street estimates had predicted -- even as the company stood fast to its promises to invest in capital spending and continue buying back shares.Gabelman forecast that by the time December 31 rolls around, Total will have grown its full-year earnings 8% in comparison to last year, and that the company is on track to do nearly as well in 2020, growing earnings a further 7%. Although valued at 15.2 times trailing earnings today, Gabelman believes these numbers put the stock squarely in "buy" territory at a current-year P/E ratio of 12.4 and a forward P/E ratio of just 11.6.Similarly, 10 out of 10 analyst ratings published on Total in the last couple of months have rated Total stock "buy." On average, analysts see Total shares climbed 22% over the next year, to an average target price of $66.12 -- again, before factoring in the 5.3% dividend. (See TOT stock analysis on TipRanks)Outfront Media (OUT)Taking a sharp right-hand turn out of the oil patch here at the end, we turn our attention now to Outfront Media, whose stock in trade is... billboards, as well as ads posted on mass transit and other "mobile" advertising assets. And if billboards don't sound particularly sexy to you, then perhaps this fact will: Outfront Media pays its shareholders a monster 5.8% dividend yield -- nearly triple the yield on the S&P 500.Commenting on Outfront's earnings results earlier this month, Wolfe Research analyst Marci Ryvicker was impressed at the company's ability to grow revenues by double digits year over year in TRADITIONAL MEDIA (Her emphasis, not ours). Q3 sales came in 11.7% higher than in the year-ago quarter, led by revenues from transit advertising, up 20%.Admittedly, next quarter looks to be a bit slower on "toughening comps." Nevertheless, Ryvicker notes that if management succeeds in growing revenues by mid-to-high-single digits, as it's promised to do, it's probably going to eclipse Street predictions for 5.4%. growth.Analysts are starting to warm to this story, though, with four out of five polled in the last three months rating Outfront stock a "buy." Consensus targets call for the stock to rise 28.2% over the next 12 months to $32.25 per share -- but Wolfe's Ryvicker is even more optimistic than that. Wowed by the company's ability to grow traditional media sales in a digital world, she's set a price target of $36 -- 43% more than the stock is worth today. (See Outfront Media stock analysis on TipRanks)
Foreign oil stocks seem to be weathering the current environment better than US drillers, and some of them have managed to significantly raise profits over the last few quarters
France's parliament on Friday voted to remove tax breaks for the use of palm oil as a biofuel, a day after a ruling in favour of maintaining the advantage led to howls of protests from environmentalists. A large majority of members present voted against a government-backed proposal to delay until 2026 the end of palm oil's tax advantages, giving companies like oil major Total more time to phase out the use of palm oil in biofuels. Late on Thursday, the National Assembly, France's lower house of parliament, had agreed to extend the tax breaks, but following strong pushback from environmentalist MPs within President Emmanuel Macron's ruling LREM party, the government agreed on a second vote.
U.S. sanctions on Moscow have forced out foreign oil majors that were developing oil and gas reserves in tricky areas such as the Russian Arctic and Siberia
The trade war appears to be the only variable that will impact the price of oil in today’s market, which means all eyes will be on Trump’s upcoming speech in New York
Shares of SunPower Corp. surged 5.1% in premarket trading Monday, after the solar power company, which is owned by France-based oil company Total S.A. , announced plans to separate into two independent publicly traded companies. After the separation, SunPower will focus on solar systems and storage and energy services, while Maxeon Solar Technologies will be headquartered in Singapore and will focus on bringing its solar panel technology to high-volume scale. As part of the separation, China-based Tianjin Zhonghuan Semiconductor Co. Ltd. will make a $298 million equity investment in Maxeon for a 28.85% stake in Maxeon post-separation. SunPower's stock has tumbled 41.5% over the past three months, while the S&P 500 has gained 6.0%.
U.S. solar company SunPower said on Monday it will split into two publicly traded companies, separating most of its solar panel manufacturing operations from storage and energy services, sending its shares up as much as 15%. The move was intended to boost value in SunPower shares, which are trading at the same level they were at two years ago. The new solar panel company, named Maxeon Solar Technologies, will be headquartered in Singapore, with manufacturing operations in France, Malaysia, Mexico and the Philippines.
French oil giant Total SA said it won't renew its membership of a key industry lobby group because the organization's stance on climate issues doesn't align with its own.
Ormat Technologies' (ORA) Q3 revenues of $170.5 million miss the Zacks Consensus Estimate by a whisker but improve 2.4% on a year-over-year basis.
“We're very intent on ensuring that we get the asset sales done because we believe we must get our debt down,” Occidental Petroleum's CEO said.
Saudi Arabia formally began an initial public offering Sunday of a sliver of oil giant Saudi Aramco after years of delay, hoping international and local investors will pay billions of dollars for a stake in the kingdom’s crown jewels.
A look at the shareholders of TOTAL S.A. (EPA:FP) can tell us which group is most powerful. Insiders often own a large...
(Bloomberg) -- Total SA’s third-quarter profit beat analyst estimates and cash flow held firm, as the French giant offset lower oil and gas prices by boosting production and cutting costs.The positive result mirrors that of British rival BP Plc, which also used a strong refining performance to offset weaker crude prices caused by the U.S.-China trade war and a flood of American shale output.“The group continues to achieve solid results” despite weaker prices, Total Chief Executive Officer Patrick Pouyanne said in a statement on Wednesday. The company is accelerating dividend growth and is on track to buy back $1.75 billion of its shares this year, he said.Reaping RewardsAdjusted net income fell 24% from a year earlier to $3.02 billion, said the company based near Paris. Analysts polled by Bloomberg had forecast $2.77 billion on average.Total is reaping the rewards of growth from new projects and acquisitions, while also shedding barrels with higher production costs through asset sales. The company said it has reduced the price at which it can cover spending, excluding dividends, from cash flow to less than $25 a barrel, well below current international prices of about $60. Cost cuts will exceed $500 million in 2019.Operating cash flow before working capital changes, a measure of oil majors’ ability to keep paying generous dividends and investing in growth, held steady despite falling energy prices. It fell just 3% in the third quarter to $6.85 billion.It’s “a resilient set of numbers on earnings and cash flow” and “a genuine beat to market expectations,” RBC analyst Biraj Borkhataria wrote in a report. “In the midst of the sector seeing material earnings downgrades, Total stands out as having a relatively resilient portfolio, visibility on earnings and a shareholder-friendly remuneration plan.”Like its peers, Total is under pressure from investors to boost returns. BP shares fell 3.8% on Tuesday despite earnings that beat estimates, as investors’ hopes of a dividend increase this year were dashed. As announced in September, Total’s interim dividend for the third quarter will rise by 6% year on year to 68 euro cents. It plans to boost its payout by 5% to 6% annually in the coming years, up from a previous plan for 3% growth.Total shares rose rose 1.1% as of 9:11 a.m. in Paris to 48.18 euros, beating gains in France’s benchmark index.New ProjectsOil and gas production climbed 8.4% from a year earlier to 3.04 million barrels equivalent a day. Thanks to project startups in the U.K. North Sea, Norway and Brazil, output is on track to grow by 9% for the full year, the company said.Sales of liquefied natural gas grew 20% in the quarter to 7.4 million tons, helped by the ramp-up of projects in Australia and Russia, and the start of the first liquefaction plant at Cameron LNG in the U.S. Cash flow from Total’s integrated gas, renewables and power segment jumped by 53% to $848 million.The downstream division benefited from better petrochemicals margins in Europe and rising sales of gasoline and other petroleum products. The unit generated almost $2 billion of cash flow in the third quarter, up 14% from a year earlier, and is “well positioned” to generate close to $7 billion of cash flow this year, the company said.(Updates with analyst comment in seventh paragraph.)To contact the reporter on this story: Francois de Beaupuy in Paris at firstname.lastname@example.orgTo contact the editors responsible for this story: James Herron at email@example.com, Helen RobertsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
This article was originally published on ETFTrends.com. The energy sector has had its share of struggles this year, but there are some points in favor ETFs dedicated to this group, including value tilts and above-average dividend yields. The $868 million IXC, which tracks the &P Global 1200 Energy Sector Index and holds 62 stocks, is higher by nearly 4% over the past week, an impressive showing when considering it was accrued against the backdrop of concerning supply/demand headlines.
Although TOTAL (TOT) is expected to have benefited from strong production from global assets, fluctuation in commodity prices may have adversely impacted profitability in the third quarter.
Mozambique's President Filipe Nyusi was on Tuesday forecast to be heading for a landslide victory in an election the opposition says has been tarnished by fraud while observers reported numerous irregularities. Some polling stations recorded many more votes than registered voters in last week's ballot, the Electoral Institute for Sustainable Democracy in Africa (EISA) said, reporting that some its observers have been obstructed. EISA said it detected the irregularity while calculating its own estimation of the outcome, which suggests Nyusi will win more than 70 percent of the vote.
Mozambique's President Filipe Nyusi is heading for a landslide victory in elections, according to a preliminary estimate by an observer group on Monday, in a contest the opposition claims has been tarnished by "mega fraud". Based on data from almost 2,500 polling stations out of a total of more than 20,000, the the Electoral Institute for Sustainable Democracy in Africa (EISA) estimates Nyusi will win 70.9% of the vote. Perceived fraud and an unhappy Renamo threaten a fragile peace accord signed just months ago between its presidential candidate, Ossufo Momade, and Nyusi.