BALTIMORE, Oct. 11, 2012 /PRNewswire/ -- Petroleum & Resources Corporation (NYSE:PEO) today announced its results for the nine-months ending September 30, 2012. The total return on net asset value (NAV), with dividends and capital gains reinvested, was 6.2%. Comparable figures for the Lipper Global Natural Resources Funds Index, the Dow Jones U.S. Oil & Gas Index, and the Dow Jones U.S. Basic Materials Index were 2.5%, 7.6%, and 7.1%, respectively.
The total return on Petroleum & Resources' market value for the period was 8.5%, significantly outperforming the Lipper peer group and the benchmarks.
"We are pleased with our performance this quarter," said Douglas G. Ober, Chairman and CEO of Petroleum & Resources. "Our strong returns benefitted from relatively stable oil prices and a surge in the price of natural gas during the period."
For the twelve months ending September 30, 2012, the total return on Petroleum & Resources' net asset value, with dividends and capital gains reinvested, was 26.3%. Comparable figures for the Lipper Global Natural Resources Funds Index, the Dow Jones U.S. Oil & Gas Index, and the Dow Jones U.S. Basic Materials Index were 13.7%, 27.1%, and 23.4%, respectively.
Of note, the total return on Petroleum & Resources' market value for the twelve-month period was 25.3%, also significantly beating the Lipper peer group.
The Fund's net asset value at September 30, 2012, compared with the year earlier, was:
Net Asset Value
Net asset value per share
The net capital gain realized on investments for the nine months was $0.88 per share.
This strong performance comes on the heels of last month's announcement of Petroleum & Resources' commitment to an annual 6% minimum distribution rate that is based on the average month-end stock price of the Fund for the twelve months ending October 31.
"This means shareholders can look forward to a minimum 6% payout whether the market is up or down, and underscores our 78-year history of paying dividends and capital gains to our shareholders," added Mr. Ober.
Details regarding the 6% annual minimum distribution rate, including frequently asked questions, can be found at www.peteres.com/quick-FAQs-minimum-distribution
During the quarter, Petroleum & Resources added three new names to its investment portfolio with the purchases of shares of E.I. du Pont de Nemours, HollyFrontier, and SPDR Gold Trust. The Fund increased its holdings in Midstates Petroleum, Phillips 66, and Questar.
In addition, the Fund sold its position in Molycorp, and reduced its holdings in LyondellBasell, MDU Resources, Royal Dutch Shell, and Spectra Energy.
The Third Quarter Report will be mailed to shareholders and posted to www.peteres.com on or about October 19, 2012.
About Petroleum & Resources
Petroleum & Resources Corporation is a publicly-traded equity investment fund for investors who seek broadly diversified exposure to the energy and natural resources sectors in a conservatively-managed fund. Internally managed, the Fund seeks to protect capital and generate dividends and capital gains that can be used as a source of income or reinvestment. www.peteres.com
The Baltimore-based Fund has been trading on the New York Stock Exchange since January 1929.
The portfolio: Petroleum & Resources invests in a diversified group of petroleum and natural gas investments, including multi-national companies, as well as exploration, equipment, and service suppliers. In addition, the Fund invests in a variety of basic materials, including coal, precious and industrial metals, aggregates, and chemicals, as these also have attractive investment characteristics. Top holdings (as of 9/30/12) include Exxon Mobil, Chevron, Schlumberger, Occidental Petroleum, Anadarko Petroleum, National Oilwell Varco, Freeport-McMoRan Copper & Gold, CF Industries Holdings, Noble Energy, and Dow Chemical.
For further information, contact:
Lawrence L. Hooper, Jr., Vice President, General Counsel & Secretary
at (410) 752-5900 or (800) 638-2479
SOURCE Petroleum & Resources Corporation