With the high oil prices hovering, the "money ability" of oil companies is attracting the attention of the world!
BP P.L.C., Shell, TotalEnergies SE, Chevron Corp and Exxon Mobil Corp successively announced their overall results for the second quarter. Financial data show that the total net profit of the five oil giants exceeded in the second quarter.60 billion dollars.
In addition, Buffett's new favorite this year, Western Oil, also handed over a "wonderful" answer, offering a generous gift for the upcoming birthday of the stock god.
Western Oil's second-quarter net profit was $3.8 billion, more than 35 times higher than a year earlier, while adjusted net income per share was $3.16, exceeding market expectations.
This year, oil stocks take advantage of the performance of the east wind, superimposed Buffett continued to bless, these companies rose gratifying, has become one of the few bright spots in the U. S. stock market this year.
Among them, Western Oil is a "dark horse" in the US stock market this year, up nearly 100 per cent, Exxon Mobil Corp up more than 45 per cent and Chevron Corp up more than 30 per cent.
It is worth noting that these oil majors, who earn "more than God", have launched share buyback programs, and shareholders have undoubtedly become the biggest beneficiaries. At present,
Shell is launching a projectA new $6 billion share buyback planIt will be completed before the third quarter results are announced.
BP P.L.C. announced that he would increase the dividend by 10% to 6.006 cents per share from 5.46 cents per share.And plans to complete a $3.5 billion share buyback before the third quarter results are announced.
Chevron Corp, who has a lot of money in his hand, willThe size of the annual share buyback program increased from $10 billion to $15 billion.
TotalEnergies SE bought back $2 billion of shares in the second quarter, and the board of directors approved a 5% increase in the second interim dividend in 2022 to 0.69 euros.And authorized the company to buy back up to $2 billion of shares in the third quarter.
Western Oil, on the other hand, repaid $4.8 billion in debt in the second quarter.A $3 billion share buyback program was launched.
Although recent fears of a recession have put pressure on oil pricesBut the chief executives of the world's top energy giants have recently warned that oil prices will remain high because of tight crude oil supplies caused by production restrictions.Overall, this will maintain the huge profits of the oil companies.
Buffett once said, "Don't waste any crisis." The god of the combination of knowledge and practice has been gradually implementing his investment concept this year, and Buffett has been buying Western oil in the last month.
9.9 million shares were bought at a cost of $582 million in the week of July 3, and the total shareholding climbed to 17.4%. In the week of July 14, the position was increased to 12 million shares, bringing the total shareholding to 18.7%. In the week of July 19, another $112 million was spent on 1.94 million shares, further increasing the total shareholding to 19.4%, one step closer to the acquisition.
In fact, Western oil may be a microcosm of Buffett's investment strategy this year.On the surface, it is optimistic about western oil, but in fact, it is optimistic about the industry.
Buffett was also asked about his heavy holdings in oil stocks at a previous Berkshire shareholders' meeting. Buffett's answer to this is mainlyConcerns about oil reserves and future uncertainty.
Buffett's golden partner Charlie Munger believes that oil will still be a precious resource in the next 200 years, and said the United States should further increase its oil reserves and retain domestic resources. Munger even aggressively believes that oil assets are more valuable than US Treasuries.
Buffett and Munger may be seen by the outside world as "wise and conservative" old men. In fact, the sense of security problem of energy can not be completely solved by new energy in a short time.
We don't know how oil stocks will go in the future. But then, it may be time for Buffett to enjoy the gains and reap the cult of global investors.
Edit / somer