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Pacific Rubiales earns #2 spot on Eco30 index


    After just ten years in the hydrocarbon business, analysts say that Pacific Rubiales is the second-best company that you can add to a stock portfolio.

    Toyota won the top seed on the Eco30 index in February, and the oil company Pacifico Rubiales follows close behind in April. Why exactly? For one thing, it has the cheapest PE ratio on the Eco30 and expects to increase earnings and offer an attractive 3.5% dividend.

    Headquartered in Colombia, Pacific Rubiales traces its roots to Pacific Status Rubiales, which was created in 2004. The company is listed on Canada's stock market and focuses on extracting and producing crude oil and natural gas in Colombia. But its strongest earnings come from North and Central America, which account for more than 50% of overall revenues. Asia follows with 27% of revenues, and Europe trails with just over 15%. In this way, the oil industry is becoming a critical part of Colombia's economy.

    Cheap fuel and record earnings

    If Pacific is looking for a stock market bargain this year, Canada is a good place to go. The Canadian market could buy shares of the company, which could trade at an 8.5 PE ratio. This is one of the lowest levels it has been at in its short time trading. The stock is a deal at this price, and its future earnings potential also support this view.

    After two consecutive years of falling stock price, the experts hope that the oil company will rebound 80% in 2014 as its profits rise 250 million euros and top 560 million euros. If the company meets analyst expectations, then its revenues will hit a historic high.

    Revenue forecasts for 2015 are more modest. Investment banks expect that earnings will settle around 640 million euros, which is a 13.5% increase compared to 2014 expectations.

    As far as a dividend, Pacific Rubiales plans to pay shareholders four times in 2014. The first took place on March 26, and the second will follow on June 20 and pay out 1.65 Canadian dollars per share. The last day to buy shares and still receive a dividend is June 18.