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LONDON — The shares of SOCO International climbed 8 pence to 385 pence during early London trade this morning after the company revealed its annual profits had advanced 134%.

The FTSE 250 oil group confirmed earnings had improved from $89 million to $207 million during 2012. The increase followed the company’s first full year of production at its main Te Giac Trang field in Vietnam. Revenue climbed 166% to $626 million while operating cash flow surged 271% to $335 million.

SOCO ended 2012 with net cash of $211 million, up from $114 million, despite spending $95 million buying out a minority interest and $33 million on share buybacks. The firm also claimed its cash pile had gained a further $61 million so far during 2013.

Ed Story, SOCO‘s chief executive, said:

“The financial and operating results for 2012 demonstrate the transformation of this Company. With the TGT field’s average gross production now over 50,000 barrels of oil a day, the record revenues, cash flow and profitability speak for themselves. Moreover, higher rates of production over continued sustained periods support our earlier views of the size of this major oilfield. Further, as we look forward into 2013, SOCO is now poised to take advantage of more substantial future growth opportunities.”

Story also expected SOCO to recommend a “sustainable return of capital” to shareholders during 2013, suggesting the firm may declare a long-awaited maiden dividend later this year.

Based on today’s results, SOCO‘s shares are valued at eight times profits adjusted for the group’s net cash pile.

Of course, whether the current 1.2 billion-pound market cap, the chances of a dividend, and the wider prospects of the oil sector all combine to make SOCO a buy remains your decision. But SOCO‘s long-term share-price performance — anyone buying at just 10 pence back in 1999 is now sitting on a 38-bagger — emphasizes the immense rewards from pinpointing major oil winners.

So if you are looking for the sector’s next multibagger, you may wish to consult this free Motley Fool report, which explains the factors you need to consider — and the risks you might encounter — when evaluating possible oil wonderstocks.

You never know — there could be another SOCO out there right now… ready to gush 38-fold. If such opportunities tempt you, please click here to read the Fool’s exclusive oil and gas report before you hit the buy button.

The article SOCO International Lifts Profits 134% originally appeared on Fool.com.

Maynard Paton owns shares of SOCO International. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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Source: FULL ARTICLE at DailyFinance

By David O’Hara, The Motley Fool

Filed under: Investing

LONDON — There are thousands of companies listed on the London Stock Exchange. At any one time, I deem that only a few are worth owning. Here is the lowdown on three of the shares in my portfolio today.

1. Lloyds Banking Group
Although shares in Lloyds Banking Group have fallen heavily in recent days, they have still managed a 7.1% rise so far in 2013. In 2012, Lloyds shares rose 83.8% — more than any other company in the FTSE 100.

I first bought the shares before the eurozone crisis blew up. I had decided that if the company did not need to raise more capital, then the shares were cheap. I paid an average price of 43.1 pence per share. Today, Lloyds shares cost 51.5 pence.

Recent results from the bank confirmed a 42% reduction in impairments. I expect these costs to fall further as the U.K. economy recovers.

2. SOCO International
SOCO International is an oil and gas exploration and production company. The company produces an average of 55,000 barrels of oil per day from the TGT oilfield offshore Vietnam. In addition to this producing asset, the company has significant exploration opportunities in Africa.

Historically, SOCO has not been the kind of company to hold on to producing assets. I believe that an international oil major would place more value on SOCO‘s Vietnamese operations than the stock market does today.

SOCO is currently engaged in an assessment process that could see the company report a significant upgrade in reserves by the end of 2013. I will keep the shares that I bought for less than 300 pence.

3. Vodafone
I bought shares in Vodafone for 160 pence in the middle of last November. Since then, I have received an interim dividend of 3.27 pence per share. Today, the shares can be sold for 168 pence. I am comfortably in profit on my investment.

Vodafone has increased its dividend to shareholders every year since 1998. Expectations are for another dividend increase for 2014.

The value of Vodafone’s stake in U.S. mobile operator Verizon Wireless becomes clearer with each dividend Vodafone receives on its investment in the company. Vodafone is currently using this dividend for a 1.5 billion pound buyback of its own shares.

If you invest for income but already own Vodafone shares, you may wish to read this exclusive in-depth report about another high-income opportunity within the FTSE 100. The blue chip in question offers a 5.5% income, might be worth 850 pence vs. around 730 pence now, and has just been declared the “Motley Fool’s Top Income Stock for 2013.” Just click here to download the report — it’s absolutely free.

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The article 3 of My Biggest Bets for 2013 originally appeared on Fool.com.

David O’Hara owns shares of Vodafone, Lloyds Banking Group, and SOCO International. The Motley Fool has recommended shares in Vodafone. Try any of our …read more
Source: FULL ARTICLE at DailyFinance

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