These three companies made solid gains in 2013, and their growth stories are ongoing. Investors attracted to them in the first place have good reasons to stick with them.
Aurora Gas and Oil (ASX: AUT) is an oil and gas producer operating through four separate joint ventures in the Eagle Ford shale region in Texas, USA. Over the past two years, operating revenue has expanded dramatically from $620,000 in 2011 to $284 million in 2013.
In the three months to 30 September, revenue saw a 7% increase compared to the previous quarter. Added to that, the quarter ended 31 December had another 9% increase in revenue from September quarter and production volume increased by 15%. FY 2014 guidance is for a 47% rise in production, coupled with declining costs for completed wells and new well investments.
Fletcher Building Limited (ASX: FBU), the largest building materials producer on the ASX by market capitalisation at $5.84 billion, has also seen share price gains. It gets about 50% of its revenue in New Zealand, where it is based, and around 36% from Australia.
For the New Zealand market, apart from the uptrend in building approvals, repair and development after a major earthquake continues, so building materials are still in demand. The Australian housing market's recent revival is beginning to show signs that building construction is also rising, giving the company good prospects on both fronts.
Operating earnings for FY 2014 are projected to be between $610 million and $650 million. Earnings could be impacted by NZD-AUD exchange rate appreciation.
BC Iron Limited (ASX: BCI), the $639 million iron ore miner, was added to the S&P ASX 200 Index (ASX: ^XJO) in December. Since the end of July 2013 its share price has risen from $3.23 to $5.16 because of great revenue growth. Total revenue shot up from $205 million to $325.3 million in 2013, resulting in a 41.2% increase in NPAT before abnormals.
It has a 75:25 joint venture with Fortescue Metals Group Limited (ASX: FMG). It's called the Nullagine Joint Venture (NJV) and in its December quarterly report it stated that its share of the record half-year sales level was 2.46 million tonnes. FY 2014 sales guidance for NJV is maintained at 5.8 million tonnes to 6.2 million tonnes. After debt repayments of US$37 million, it had a cash position of $197 million for the quarter.
Foolish takeaway
2014 can be just as strong a year for these three as the reasons for their growth are still in play, so it's best to let your profits grow as long as they can. Continual homework on the part of the investor is required, by continuously reading up on the company and even contacting them for further information.
