Texxon Holding Ltd

Texxon Holding Ltd Annual Review - Straight Talk for Investors

Let’s cut through the noise. Here’s what you actually need to know about Texxon’s year:

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1. The Basics

Texxon digs up and refines oil/gas into everyday fuels and plastics. Sales hit $9.2 billion (up 4% from 2022), but profits dropped to $1.3 billion (down 8%) due to equipment repairs and legal costs.

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2. Growth or Decline?

• Oil production: Up 3% (good!).
• Gas sales: Down 5% (not great).
• Dividends: Still $0.75/share (no raise, but reliable).
  Verdict: Stagnant growth. They’re treading water.

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3. Wins & Losses

✅ Wins:

• Discovered a new oil field in Brazil (could boost profits by 2026).
• Launched first solar project (tiny but symbolic).

❌ Losses:

• $200 million pipeline leak fine.
• Lost a major Asian contract to a competitor.

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4. Debt Watch

• Cash: $2.1 billion (down from $2.8 billion in 2022).
• Debt: Stuck at $12 billion.
  Red flag: Spending more than they earn. Not in crisis, but not improving.

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5. Biggest Risks

• Oil price swings: Profits could vanish if prices drop.
• Renewable lag: Only 5% of budget goes to green energy (competitors spend 10-15%).
• China’s rules: New data/security laws could disrupt projects there.

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6. Vs. Competitors

• Better than: PetroGlobal (smaller profit drop).
• Worse than: GreenEnergy Co. (growing renewables 20% yearly).
  TLDR: Middle of the pack. Not leading, not collapsing.

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7. Leadership & Strategy

Same CEO, same “slow and steady” plan. Still betting heavily on oil, with minimal renewable investment.

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8. 2024 Outlook

• Forecast: Flat profits unless oil prices surge.
• Watch: Brazil oil field progress and renewable spending.

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Should You Invest?

👍 Yes if:

• You want steady dividends (even if growth is slow).
• You’re bullish on oil prices staying high.

👎 No if:

• You fear climate policies or China’s regulations.
• You want a stock ready for the green energy shift.

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The Bottom Line

Texxon is like a dependable but rusty pickup truck: it works today, but you wonder how long it’ll last. Their reliance on oil and slow green transition make them risky long-term. Short-term? A decent dividend play—if oil cooperates.

Proceed with caution (and maybe keep an eye on that Brazil project). 🛢️💡