gopro
初级会员
- 注册
- 2014-07-01
- 消息
- 1,212
- 荣誉分数
- 86
- 声望点数
- 58
Multibillionaire Warren Buffett is sniffing opportunities, as the crude oil prices take off to a shaky start in 2016. Mr. Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) has resumed its purchase of stake in Phillips 66. As per a regulatory filing on Friday, the company spent approximately $832 million in January to increase its stake in the oil refiner.
Berkshire Hathaway acquired approximately 2.54 million shares of Phillips 66 (NYSE
SX) at a transaction value of $198 million. This is the first transaction by Berkshire since January 14, 2014.
Till now, the company has accumulated 10.81 million shares in total, equaling to 72.29 million shares; Berkshire owns 13.7% of the total company. As of Friday’s closing price, the value of the total shares owned by Berkshire Hathaway stands at roughly $5.79 billion. According to the Securities and Exchange Commission (SEC) filings, Phillips 66 is the sixth-largest stock holding of Berkshire Hathaway.
Houston-based Phillips 66 reported its fourth quarter fiscal year 2015 (4QFY15) financial results on January 29. The company posted net income of $650 million, a 43% drop from previous year. The decline was triggered by the difference between the prices of refined products and cost of oil and lower crack spreads. However, excluding items Phillips 66 reported earnings per share (EPS) of $1.31, topping the analysts’ consensus of $1.37.
In 2015, the steep decline in oil prices positively impacted Phillips 66’s financials; the company’s stock price increased by more than 20%. The major reason was the decline in the cost of feedstock for its refinery operations; as a result, the company’s margins appreciated despite a decrease in revenue.
Phillips 66 has been able to make the most of the deteriorating crude oil prices, driven by the strength in its midstream and refining segments. However, the company has failed to recreate its magic of 2015; the stock has lost nearly 3% since the beginning of 2016. We believe that the recent downward trend in the stock price presents a buying opportunity, as the midstream and refining segments will continue to drive the company’s earnings higher.
Berkshire Hathaway acquired approximately 2.54 million shares of Phillips 66 (NYSE
SX) at a transaction value of $198 million. This is the first transaction by Berkshire since January 14, 2014.Till now, the company has accumulated 10.81 million shares in total, equaling to 72.29 million shares; Berkshire owns 13.7% of the total company. As of Friday’s closing price, the value of the total shares owned by Berkshire Hathaway stands at roughly $5.79 billion. According to the Securities and Exchange Commission (SEC) filings, Phillips 66 is the sixth-largest stock holding of Berkshire Hathaway.
Houston-based Phillips 66 reported its fourth quarter fiscal year 2015 (4QFY15) financial results on January 29. The company posted net income of $650 million, a 43% drop from previous year. The decline was triggered by the difference between the prices of refined products and cost of oil and lower crack spreads. However, excluding items Phillips 66 reported earnings per share (EPS) of $1.31, topping the analysts’ consensus of $1.37.
In 2015, the steep decline in oil prices positively impacted Phillips 66’s financials; the company’s stock price increased by more than 20%. The major reason was the decline in the cost of feedstock for its refinery operations; as a result, the company’s margins appreciated despite a decrease in revenue.
Phillips 66 has been able to make the most of the deteriorating crude oil prices, driven by the strength in its midstream and refining segments. However, the company has failed to recreate its magic of 2015; the stock has lost nearly 3% since the beginning of 2016. We believe that the recent downward trend in the stock price presents a buying opportunity, as the midstream and refining segments will continue to drive the company’s earnings higher.
