STO +3.08%: Had a good session today following FY22 results that showed NPAT of US$2,46bn, up 160% on CY21 due to higher oil and gas prices. While 2H earnings were weaker than forecast due to higher costs, the dividend of 15.1c was better and their guidance was good. STO is still a low cost business with a $34/bbl free cash flow break-even oil price. They have underperformed Woodside (WDS) all year and we think STO now represents an opportunity as a relative value play.
MM is turning more bullish on STO ~$7, particularly from a relative standpoint
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