Share tips: Troubled oil major is still a good buy

Despite being battered by the eurozone debt crisis and an aggressive foreign government, don't write off this talented oil giant just yet, says Paul Hill.

The price of shares in Repsol, Spain's flagship integrated oil major, has more than halved this year. That's due to Spain's sovereign debt crisis and bad news from Argentina, where the populist government expropriated Repsol's $10.5bn stake in Argentine national oil firm YPF, robbing Repsol of more than a fifth of its earnings.

Yet there's still plenty of upside here. Repsol's upstream operations (the business of getting oil out of the ground) are the envy of the industry. Production is set to rise by 7% a year and surpass 500,000 barrels per day by 2016, with the reserve replacement rate (which measures the firm's success at finding new reserves to replace the ones it is extracting) exceeding 120%.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.