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We’ve simply wrapped up the 2022 monetary yr, and what a yr it was. The S&P/ASX 200 Index (ASX: XJO) had a reasonably miserable FY 2022, falling by 10.19% between 1 July 2021 and 30 June 2022. That makes the efficiency of ASX 200 power share Seashore Vitality Ltd (ASX: BPT) much more outstanding.
Seashore shares had a cracking FY 2022. This ASX oil share began FY 2022 at a share value of $1.24. However by the top of June, Seashore shares had risen to $1.73 every. Meaning buyers loved a acquire of 39.5% over the monetary yr simply gone.
You possibly can add one other level or two there to account for the two cents per share in absolutely franked dividends that buyers loved over the yr as properly.
So what was behind Seashore’s profitable FY 2022?
How did the Seashore share value handle a acquire of 40%?
Nicely, we don’t need to dig (or ought to we are saying drill) too deep. As an ASX 200 power share, Seashore’s fortunes are roughly tied to the worth of crude oil itself. And oil has had a wild few months.
As we mentioned earlier this month in relation to Seashore’s oil peer Woodside Vitality Group Ltd (ASX: WDS), oil costs surged within the wake of the Russian invasion of Ukraine earlier this yr.
West Texas Intermediate (WTI) crude was going for round US$75 a barrel at the beginning of 2022. However till very not too long ago, it was properly over US$100 a barrel, having soared following the onset of the battle in Ukraine.
That explains why the Seashore share value was roughly flat over the six months to 31 December 2021, however soared over the second half of the 2022 monetary yr. Most ASX oil shares, together with Woodside, skilled related share value strikes.
So buyers largely have larger oil costs to thank for Seashore Vitality’s 40% return over the 2022 monetary yr. Will probably be attention-grabbing to see if Seashore provides buyers a repeat efficiency over FY 2023.
On the present Seashore Vitality share value, this ASX 200 power share has a market capitalisation of $3.89 billion, with a dividend yield of 1.18%.
