Ann: Special Dividend and Dividend Payout , page-97

I finally got around to reading WPLs last report. A few things stand out.

The growth is operating income is outstanding at 1,887 mill. Up 53% from last year at 1,226 and up 191% over the past five years. From 2009 to 2012 it actually fell -4.39% so you can see how significant a reversal it is.

All things considered, operating income indicates how healthy a business is.

A couple of other things I noticed.

1. We should (or I should really) be taking note of Brent Crude prices rather than WTI as that's what WPL sells mostly in. (force of habit). WPL's average sale price was $98 in the quarter and at the current Brent crude price of $98, WPLs sales figures are relatively unaffected year to date, so they should also have a good second half - maybe even slightly up. Average Brent for the year has been around $105, despite the recent dip.

2. 66% of sales comes from gas, 77% of current production comes from gas. Therefore we should give far less weighting to movements in Brent at any rate and look at LNG pricing and inventory much closer. (again force of habit - five years ago it was the other way round)

Upgraded from sell to hold but I'm still iffy on the broader market.

Cheers,
BB