BALTIMORE, Jan. 15 /PRNewswire-FirstCall/ -- Petroleum & Resources Corporation announces the Corporation's performance for 2008.
2008 INVESTMENT RETURNS
For the twelve months ended December 31, 2008, the total return on Petroleum & Resources' net asset value, with dividends and capital gains reinvested, was (39.8)%. Comparable figures for the S&P 500 Index and Dow Jones Oil & Gas Index were (37.0)% and (35.8)%, respectively. The total return on Petroleum & Resources' market value was (42.2)%.
The annual rate of distribution to stockholders (the total dividends and capital gains distributed during the year divided by the average daily market price of the Corporation's stock) was 8.88%.
NET ASSET VALUE ANNOUNCED
The net asset value of Petroleum & Resources at the end of 2008 is compared with the prior year in the following table:
12/31/08 12/31/07 Net assets $538,936,942 $978,919,829 Shares outstanding 23,958,656 22,768,250 Net asset value per share $22.49 $42.99
During the year, the Corporation repurchased 381,979 shares of its common stock.
SECURITIES TRANSACTIONS DURING THE FOURTH QUARTER
During the fourth quarter, the Corporation increased its holdings in Noble Corp. and Transocean. Four positions were eliminated from the Corporation's list of holdings with the sales of Air Products & Chemicals, Marathon Oil, Murphy Oil, and Suncor Energy. The Corporation reduced its holdings in ConocoPhillips, CONSOL Energy, Exxon Mobil, Hercules Offshore, Massey Energy, Schlumberger, and Total S.A.
OTHER SUMMARY FINANCIAL INFORMATION 12/31/08 12/31/07 Unrealized appreciation $151,455,732 $606,901,290 Net investment income $9,651,706 $10,070,758 Net realized gain $57,867,203 $82,692,239 Key Ratios Net investment income to average assets 1.10% 1.12% Expense ratio 0.51% 0.54% Portfolio turnover 16.89% 7.36% Cash to net assets 12.8% 3.4% TEN LARGEST PORTFOLIO HOLDINGS (12/31/08) % of Net Assets Exxon Mobil 13.2 Chevron 12.5 Occidental Petroleum 4.5 ConocoPhillips 4.0 XTO Energy 3.2 Noble Corp. 3.2 Noble Energy 3.1 Devon Energy 3.0 Apache 2.8 Transocean 2.7 52.2% SECTOR WEIGHTINGS (12/31/08) % of Net Assets Integrated 36.4% Exploration & Production 19.2% Services 16.2% Utilities 12.8% Short-Term Investments 12.8% Basic Industries 3.2% ANNUALIZED ONE, FIVE AND TEN YEAR COMPARATIVE RETURNS Returns on net asset value (12/31/08) 1 Year 5 Year 10 Year Petroleum & Resources -39.8% 8.2% 7.9% D J Oil & Gas Index -35.8% 13.6% 10.7% Natural Resources Mutual Funds -47.8% 8.4% 9.3%
Petroleum & Resources Corporation is a Baltimore-based closed-end investment company. Its stock trades on the New York Stock Exchange under the ticker symbol PEO.
For further information please contact:
Douglas G. Ober, Chairman, CEO, and President
Lawrence L. Hooper, Jr., Vice President, General
Counsel and Secretary
410-752-5900 or 800-638-2479
E-mail:
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