Oil Company Profit Predictions
Gasoline prices have a big impact on the profits that oil companies bring in each quarter. Profit annoucements should be reported in the next few weeks, so what exactly are analysts expecting to be reported? You know they probably have a prediction! Here is what Mary Ellen Biery thinks we should expect.
Margins dropped by nearly half in 2009 after a precipitous drop in oil prices left companies scrambling to slash spending in exploration and production. Of course, gasoline prices have risen again, and the average national price of a gallon of regular gas on Friday was $3.47, according to AAA’swww.fuelgaugereport.com. That’s higher than the $3.25 average price of gas for the full year in 2008.
The margins for oil and natural gas producers analyzed by Sageworks have also risen since 2009’s low of 5.46 percent, but they haven’t regained their lofty levels from earlier in the century. Indeed, in the last 12 months, margins have averaged 7.31 percent among those companies.
Granted, gasoline and oil prices haven’t hit the peak status investors are hoping for, they are still up in comparison to the last couple years. This is reason enough to be hopeful, but still careful while investing. Profits could be up, but I suppose we just need to wait to see those reports!
Quotes taken from report by Mary Ellen Biery, Read the entire article here.
This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.
