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Tethys Oil AB (publ) (0A1V.L)

LSE - LSE Delayed price. Currency in SEK
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79.30+0.30 (+0.38%)
At close: 06:29PM BST
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    Tethys Oil is one of the most attractive oil plays globally in my opinion: extremely low valuation, high - probably again 10% - dividend yield next year (like this year). Long term, highly skilled management who invest carefully with precision and with a passion for finding new oil fields.

    Yahoo's valuation of the Tethys Oil-stock looks unattractive but that is due to the fact that they have not translated the Swedish currency SEK into USD, i.e. the stock trades around 80 SEK which is around 8 USD today. The valuation you see here at yahoo finance is based on "80 USD" stock price and thus P/E etc are around "47" instead of 4.9.

    Tethys Oil AB is a Swedish headquartered company but nearly all operations are centered in Oman and nearly all costs and revenue are USD based. Thus all reporting is made in USD. The only parameter that is in SEK is the stock price.

    Oman is a stable arabian country with a non-sectarian version of Islam (not sunni-shia divide) located on the Arabian peninsula. Population is 3 Million; oil exports approx. 1 Million barrels/day for the country as a whole. Its oil export port is located outside the Persian Gulf, i.e. is not exposed to potential tensions in the Strait of Hormuz. Next to Shell and Occidental, Tethys Oil has become a major Oman oil producer and oil exploration company.

    The founder and CEO Magnus Nordin is still one of the largest shareholders in Tethys Oil. He used to be a senior executive during many years for the Lundin-family; a successful Swedish energy- and mining family.

    Due to Greta Tunberg, climate change discussion etc and the Swedish investors are dumping fossil energy shares so there might be a anti-cyclical chance to get Tethys Oil at this low price. At year end nearly one third of the market cap will be net cash, i.e. the company can both grow and invest and still "satisfy the yield hungry investors". I see corporate governance at Tethys Oil as very clean and top of the class.

    Disclosure: I own Tethys Oil stocks. All stocks can go down, including Tethys Oil. Especially oil price can fluctuate and lead to disappointments if you own an oil stocks. I do not have a crystal ball saying where oil prices will go :)