(1888PressRelease)
April 18, 2009 - Mira, Portugal – SADIF Investment Analytics SA, today announced the release of a new equity research report covering Nexen Inc (NXY). The report utilizes SADIF's powerful StockMarks™ stock rating system and is required reading for any current or potential Nexen Inc.
Report Summary: Shares in Canadian oil exploration and production company Nexen Inc outperformed the broader TSX Composite Index over the past year despite the significant decline in oil prices. Nexen shares dropped 25% compared to the 31% slump in the index since April 2008. Nexen's fourth quarter 2008 results, announced February 12th, revealed that sales declined by more than 20% compared to the fourth quarter of 2007. The company also took an after-tax impairment charge of CAD 317M, causing the company to report a net loss for the quarter of CAD 181M from a profit of CAD 194M in Q4 2007. Nexen revealed that the company's 2009 investment budget is CAD 2.6B which is self-funding at a WTI crude oil price of USD 60/bbl.
The current WTI price is hovering around USD 50/bbl. Nexen suggested in its fourth quarter earnings release that it was unlikely to carryout its complete 2009 capital program. While the crash in oil prices since mid-2008 has effected the company's short-term profitability, in order to assess Nexen as a long-term investment, we should focus on the company's long-term underlying fundamentals. We can assess Nexen's fundamentals through the use of the StockMarks framework. Nexen currently has an overall long-term investment-attractiveness rating (Total StockMark or SMT) of 63, placing the company above the Canadian market average. This rating places Nexen fifth when compared to ten of the company's closest Canadian-listed peers, selected on the basis of similarity of business, market positioning factors such as size and share comparisons.
The complete report breaks down the Total StockMark into its three components – business, management and price, performing a thorough analysis of Nexen Inc for long-term investors.
A summary of the StockMarks™ ratings for Nexen Inc is available here:
http://sadifanalytics.com/stockmarks/company.php?ticker=NXY&cod_country=18
The report has been distributed to Reuters, and forwarded to Yahoo Finance and FT.com. It is available under 'Analyst Reports' from these websites, from multiple professional platforms including Reuters Knowledge, TheMarkets.com and Thomson Research or directly from SADIF-Investment Analytics SA at:
http://sadifanalytics.com/stockmarks/article/hist_article.php?cod_country=18
About SADIF-Investment Analytics SA:
SADIF-Investment Analytics SA is an independent investment research company covering sixteen different markets and over 12,000 companies. The StockMarks™ system is based on proven investment principles and is designed to drive long-term shareholder returns.
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