...Energy Inc. 2 Investments 2 Suncor Energy Inc. 3 Investments 3 The Industry 4 Stock Performance 6 Ratio Analysis 8 Risk Factors 10 Commodity price risk 10 Regulatory risk 10 Sovereign risk 11 Earnings per Share (EPS) 12 Conclusion 14 References 16 Appendices 17 Appendix 1: Husky's Production - December 31st, 2011 17 Appendix 2: Suncor's Production – December 31st, 2011 18 Appendix 3: Ratio Interpretation 19 Appendix 4: Husky’s Basic EPS – December 31st, 2011 20 Appendix 5: Suncor’s Basic EPS – December 31st, 2011 20 Appendix 6: Husky's Financials 21 Appendix 7: Suncor's Financials 24 Introduction The purpose of this report is to carry out a financial analysis on Husky Energy Inc. and Suncor Energy Inc, to determine which of these two companies make up the appropriate energy-related exposure for our client’s stock portfolio. Thus, a financial analysis evaluation will be presented for the above mentioned companies as well as a reasoned investment recommendation to support our proposal. Acting as financial analysts, our team will reveal the macro and micro economic conditions along with the company's fundamentals, sector, and industry recommendations (Investopedia, 2012). Throughout the body of this paper, these companies will be assessed based on their overall appeal in terms of industry, primary businesses activities, and financial performance over the last three years. In order to apply our knowledge of course material and develop...
Words: 4044 - Pages: 17
...Analyzing Current Economic Issues Summary: Canada’s Exports Need to Be Reoriented to the New Global Economy, Says Bank of Canada Governor Mark Carney (Source: Bank of Canada) This article focuses on the reasons behind the downturn of the Canadian economy. Mark Carney believes that the combination of overexposure to the U.S. market and underexposure to faster-growing emerging markets is almost entirely responsible for Canada’s further loss in world market share over the last several years. The article also talks about what actions Canada can take in order to bring our economy back up, and how we should invest in our greatest resource, which are our people Summary: Canada GDP: July 2012 Saw 0.2 Per Cent Jump, Decline in Mining, Oil and Gas (Source: HuffPost Business) During the month of July, 2012 Canada has seen a 0.2 percent decline in its mining, oil and gas extraction. When looking at the different types of sectors, the manufacturing sector performed well with a 6.9% increase along with wholesale trade increase by 0.2%. Although Canada’s output has increased by 1.9%, its weakness still lies in the export sector with a $2.9 billion trade deficit for the month July. Summary: Unemployment rate holds steady at 7.4% (Source: CBC NEWS) According to Statistics Canada, Canada’s unemployment rate remained at 7.4% in October. In addition, October’s unemployment in 7/12 provinces and territories has increased especially in P.E.I with the highest unemployment rate increase...
Words: 1561 - Pages: 7
...3 Population 4 Language 5 Religion 5 Political, social and legal environment conditions 6 Political Conditions 6 Social conditions 7 Legal environment 8 Economic environment 9 Economic conditions 9 Entrepreneurship conditions 12 Competitiveness indicators 14 Conclusion 17 REFERENCES: 18 Demography and geography Geography Sweden is a northern European country located on the Scandinavian Peninsula, as we can see in Figure 1, bordering the Baltic Sea, Gulf of Bothnia, Kattegat, and Skagerrak, between Finland and Norway. Its topography consists mostly of flat or gently rolling lowlands but there are mountains in its western areas near Norway. Figure 1 : Map of Sweden Figure 1 : Map of Sweden As we can see from Table 1 Sweden is really a large country and is the 5th largest in Europe. Sweden also has natural resources (Sweden is currently one of the EU’s leading producers of ores and metals) that makes her stronger compared to other European countries. Rich bowel of land is very important to each country’s economy as well as the whole world economy. Minerals owning countries can increase their exports, economy level and can improve the social status of residents. Of course we have to mention the fact that Sweden has a really big coastline that allows to export and import goods by seaports. Area | total: 449,964 sq km land: 410,934 sq km water: 39,030 sq km | | | Land boundaries: | total: 2,233 km border countries: Finland...
Words: 3154 - Pages: 13
...numerous focal points of this exchange process. The economics and producers effectiveness measured by absolute advantage for these economics/producers. For example; if the producer needs lesser amount of contributions/inputs to provide specific product, then this producer has an absolute advantage in producing process. Comparative advantage discusses the economy/producer ability to produce a specific product with a minimum opportunity cost comparing to another producer. "There is a possibility of each nation to have an absolute advantage in producing and delivering the products; however; the different nations could in any case have distinctive comparative advantages". The international trade theory based on two dynamic concepts; "Absolute and comparative advantage". The main difference between these concepts is that the absolute advantage measure nation ability to produce more profits per unit of beneficial input than another. However; the comparative advantage measure the ability that one nation has an absolute advantage in each kind of produce. Analyze measures of economic growth, and comparative and absolute advantage in international trade for the following countries: USA The economic growth indicates that the U.S economy has expanded by an annual 1.1 percent in the first quarter of 2016 which is higher than the projections of 0.8 percent. Based on the data given by the Bureau of Economic analysis, the positive economic growth...
Words: 4210 - Pages: 17
...criticized for bringing instability in the overall employment rate of the nation. For Example: Comparing Mexico, which had implemented most policies of the Washington based IMF, and Brazil, which kept a more “Closed Door” approach as we all know. Mexico was more vulnerable to international crisis and didn’t reach a higher level of growth and employment, as of Brazil’s, even though it had full, tax free access to the U.S. Market. “NAFTA’s (North American Free Trade Agreement) effects on employment in the Mexican rural sector have been disadvantageous, somewhat due to the weakened capacity of this sector to absorb labor and to the limited growth of value added in the manufacturing industry. In 2004, open unemployment in Mexico reached an all-time high, and the informal sector has vastly expanded.” (United Nation Publication, 2005) Another example is Nigeria, where GDP grew 7% year after year. The IMF again managed to increase growth without increasing employment. In fact this oil rich country saw its own unemployment rate go from 19.7% to 23.9%. But according to the IMF, Nigeria is on the right track to Globalization thanks to “Booming oil prices and an ambitious reform agenda” (IMFSurvey Magazine: By Mumtaz Hussain and Gonzalo Salinas, 2012) I think the only thing ambitious is their political agenda to increase oil production and exploit a third world country to export natural resources. In other words, it’s just another small country’s government trying to...
Words: 447 - Pages: 2
...INTRODUCTION The objective of this mini project is the study the structure and performance of national economies and the policies that governments use to try to affect economic performance. Important topics in this mini project include the determinants of long-run economic growth, unemployment, inflation, and macroeconomic policy. In addition, this mini project are also able us to know the measurement of the standard living of a country in term of productivity, efficiency and effectiveness. Besides that, we are also able to determine what is measured by Gross Domestic Product, Inflation and etc as well as know how the government policy could contribute to improved productivity of the country. The picture below shows the brief idea how does Indonesia looks like. Picture 1: Tourism in Indonesia’s island Picture 2: Place to travel in Indonesia Picture 3: City in Indonesia Picture 4: Map of Indonesia Choose one country of the world The chosen country was Indonesia. The reason of Indonesia been chosen because Indonesia is given public an image that Indonesia is a lag behind country than other since there was a tragic event happened in Indonesia in the middle of 1997 all along. This causing Indonesian suffered a great deal and many of them have experienced a very large decline in their living standard. It was irony in Indonesia’s case seen a country...
Words: 8104 - Pages: 33
...1. Introduction Russia holds the world’s largest reserves of natural gas, the second largest coal reserves, and the eighth largest crude oil reserves. Russia recent years has become the world’s top gas exporter, mainly to Europe. At the time of fast growing electricity demand, when consumption significantly rise with development of new technologies, gas as a source of electricity become more and more important issue. Topic will discuss natural gas industry in Russia and Russian Company Gazprom. Gazprom is a peculiar corporate giant in gas industry. It is most internationally oriented company in Russia. 2. The role of geography Sitting astride the Eurasian landmass and occupying a territory of 17,098.2 thousand square kilometers, and spanning 11 time zones from Kaliningrad in the west to Kamchatka in the east, Russia is the largest state in the world in terms of territorial extent. Its northern shores wash against the Artic Ocean, while the southern resort region of Krasnodar enjoys a Mediterranean climate. Today Russia’s population is 142.2 million, and the average population density is 8.3 persons per square kilometers (1). However, this hides considerable regional variation: the average population density in the Central Federal District, which includes Moscow, is 57.7 persons per square kilometer, while in the Far Eastern Federal District it is only 1.1 persons. The Central Federal District occupies 3.8 per cent of Russia’s territory and was home to 26.2 per...
Words: 2970 - Pages: 12
...Economic Diversification Name: Institution: Course: Tutor: Date: Introduction In Middle East, the Saudi Arabia telecom industry is the largest with over fifty million mobile phone subscribers. At the end of 2011, the mobile penetration was about 188% with the sector enjoying stable growth. Saudi Arabia is the world’s largest oil exporter with oil being its largest income earner. However, to avoid the overreliance on the oil sector, the government of Saudi Arabia has been embarking on measures to diversify the economy through investments in other sectors as well as privatization of some industries. Their efforts have been successful and the telecommunication industry have benefitted from this diversification with a good growth rate which seems to be sustainable in the future. The United Arab Emirates on the other hand has had an unstable growth rate in their telecommunication industry. This paper compares the telecommunication industries of Saudi Arabia and United Arab Emirates and shows how economic diversification has been successful in growing the non oil sectors in Saudi Arabia. In addition, recommendations will be provided on improving the telecom sector of the UAE. Introduction to Saudi Arabia and its Economic development Saudi Arabia occupies the largest part of Arabian Peninsula, it is located on a 1,960,582 sq km area most of it being a desert. Saudi Arabia hosts...
Words: 3483 - Pages: 14
...increase the speed of business processes. Based on these factors, BPO may help MNCs grow faster without the huge capital requested. At the same time, this process also brings limitations for MNCs, such as the higher risk level, which could be caused by both privately or structure of firm. Risks and treats of outsourcing must therefore be managed, to achieve any benefits. 2.0 Investment Market Analysis Vietnam is viewed as a viable alternative to China for foreign (particularly U.S. and European) companies seeking to establish or increase their lower-cost manufacturing capacity, which keeps the second biggest supply-chain in group’s Asia factories. The reason of company should increase the outsourcing in Vietnam as following. 2.1 Economic situation Firstly, most of the...
Words: 3407 - Pages: 14
...Islam (13164087) SK Yaishi Binte Zaman (12264035) Ahammed Riaz(13164009) Date of Submission: April 2, 2015 BHP Billiton Limited Introduction: BHP Billiton is world’s largest diversified natural resources company. The company was created by the merger of two companies, BHP Ltd (An Australian mining company) and Billiton PLC (An UK based Company). BHP Billiton has created long time share holder value through the discovery, acquisition and development of natural resources. In the last few years, BHP Billiton has faced some governance challenges in conducting their business around the world. For overcoming those challenges several strategic drivers has been taken by BHP Billiton. This report mainly focused on external and internal environment, strength and weakness, Governance challenges and strategic drivers of BHP Billiton. Overview of BHP Billiton: BHP Billiton is a Dual Listed Company (DLC) comprising BHP Billiton Limited and BHP Billiton Plc. BHP Billiton was created through the DLC merger of BHP Limited (now BHP Billiton Limited) and Billiton Plc (now BHP Billiton Plc), which was concluded on 29 June 2001. BHP Billiton is a leading global resources company. The purpose is to create long-term shareholder value through the discovery, acquisition, development and marketing of natural resources. BHP Billiton are among the world’s largest producers of major commodities, including aluminum, coal, copper, iron ore, manganese, nickel, silver and uranium, and have substantial interests...
Words: 7470 - Pages: 30
...Economic Growth: Comparison of Australia, USA and India Subject: HI5003 Economics for Business Submitted by: Anju Kattel Panta OLI2392 Binu Pokhrel Neupane EMV2704 Harpreet Kaur PCC2409 Rachel Chomapoy BRI2029 Khadijah Iftaqar BSI2129 Shama Shrestha EMV2816 Wangyang Wei ANY2083 Date: 6 June, 2014 Introduction to Economic Growth In this report, the economic growth of Australia, USA and India is discussed. Economic growth is key factor to economic development. People of the nation are benefited when national income grows. The is no any scientific method of formula to measure the economic growth whereas the data, charts and other information can be helpful for strategy-makers to understand the countries’ economic positions and design a framework to guide for an effort toward development. Data are the artefacts covering measures of economic growth, such as gross domestic product (GDP) and gross national income (GNI). They also have pointers representing elements known to be appropriate to economic growth, such as capital stock, employment, investment, savings, consumption, government spending, imports, and exports (The World Bank, 2014). GDP is considered to be one of the basic indicators that assess a country’s economy growth. According to The statistics Portal (2014) GDP is defined as market value goods and services produced by using the resources and capital of the country in provided span of time irrespective of nationality. Normally, it is calculated...
Words: 3023 - Pages: 13
...Unfavorable Institutional Environment * Russia Does Not Have Effective Mechanism to Support Domestic Business * Phytosanitary Standards: Good Conditions and Poor Implementation * Sources of Growth of Exports to Russia Are Limited Overall Assessment of Impact of Accession to the WTO…………….10 * Missed Opportunities for Growth * The Overall Picture Conclusion ……………………………………………………………………13 References.……………………………………………………………………15 Introduction Russian economy can effectively develop only in close cooperation with international market of goods and services, in spite of huge potential and resources. It also required by the state reforms inside the country. However, World Trade Organization (WTO) states the rules of game on the international market, on time of international globalization. WTO unify about 160 countries and covers more than 95% of turnover of international trade. Russia should enter to WTO considering strategic perspective. This is only way for both Russia government and business. However, rules and norms of WTO create new organizational and legal environment of functioning, which on its own way creates mixed reaction. Based on this Russia needs deployed and targeted preparation for enter to WTO, without political rush, without damage for economic security and taking into account the views...
Words: 3710 - Pages: 15
...International Strategy Advanced Strategy M2/MSc 2015-2016 Corporate (or Growth) strategy: Key questions? • Should the firm focus its activities on a specific market or diversify in several segments or sectors? • Should the firm limit its business to the local market or internationalize? • Which method of growth strategy should the firm choose? • organic development or • corporate, commercial, technical alliances with other stakeholders active in the business environment (clients, suppliers, competitors, R&D centres, academic units, …)? Key questions of Corporate strategy Why and how should the firm internationalize? International strategy analytical framework Location Advantage WHY? Outside-In approach HOW? Source: Exploring Strategy, 9th edition, Pearson, 2011 Inside-out approach Incentives and basic benefits of internationalisation Incentives Basic Benefits Extend a product’s life cycle Increased market size Gain easier access to raw materials Economies of scale and learning Opportunities to integrate operations on a global scale Location advantages To support strategic orientations! Opportunities to maximize the ROI (e.g. rapidely developing technologies) Get access to consumers in emerging markets Source: Ireland, Hoskisson and Hitt, The Management of Strategy, 2011 Outside-in approach: Internationalisation drivers Why going international? The YIP’s matrix (Inter-country compensation...
Words: 3433 - Pages: 14
...Dissertation Synopsis Name of the Student: Ishan Kashyap : MBA (M&S) AUUP Enrollment No: A0102212127 , Class Roll No. C- 29 Contact No. - +9555449830 E-Mail id: ishan2989@yahoo.com Name of Faculty Guide: Ms. Tavishi DESSERTATION TITLE Externalities of Special Economic Zone. RATIONALE OF THE PROPOSED INVESTIGATION For developing countries, special economic zones (SEZs) traditionally have had both a policy and an infrastructure rationale. In terms of policy, the SEZ can be a useful tool as part of an overall economic growth strategy to enhance industry competitiveness and attract foreign direct investment (FDI). Through SEZs, governments aim to develop and diversify exports while maintaining protective barriers, to create jobs, and to pilot new policies and approaches (for example, in customs, legal, labor, and public private partnership aspects). SEZs also allow for more efficient government supervision of enterprises, provision of off-site infrastructure, and environmental controls. The category SEZ includes free trade zones (FTZ), export processing Zones (EPZ), free Zones (FZ), industrial parks or industrial estates (IE), free ports, free economic zones, and urban enterprise zones. LITERATURE REVIEW 1) Introduction In this research paper sector specific studies are conducted that analyze efficiency and its variations over the years and studies attempting to shed light on variations in terms of efficiency across major Indian states...
Words: 2547 - Pages: 11
...Introduction Investment Climate means the general economic conditions affecting the financial markets. A favorable investment climate encourages businesses to improve efficiency and productivity in order to increase revenues and capital available for investment. It also gives investors confidence in the market and encourages them to invest more capital. Investment Climate The investment climate in a country is the collective set of incentives which establish the “rules of the game” to which economic actors must adhere. Set by a wide variety of sources, including government policies, cultures of public administration, and institutional, social, and physical infrastructure, the investment climate determines the level and uncertainty of returns expected by economic agents and consequently impacts the quality and quantity of investment and the incentives to productively employ inputs. The investment climate can be broken down into the following three main areas: (1) Macroeconomic and Trade Policy - The capacity of domestic institutions and economic policy (e.g. fiscal, monetary, trade, and exchange rate policy, administration of customs and ports, security of property rights, strength of rule of law, and political stability) to reduce costs of international trade and finance and ensure a consistent and non-distortionary basis for investment, production and exchange; (2) Microeconomic Framework - The contribution of microeconomic regulation (e.g. rules governing...
Words: 4757 - Pages: 20
