SGX Market Updates

Trio of SGX Best-Performing Oil & Gas-Related Stocks Returned 105% in QTD


PUBLISHED ON |

19 November 2019

  • SGX lists 12 energy/oil & gas-related stocks with market cap above S$100 million. They span sub-segments such as oil exploration and production, subsea and offshore drilling services, offshore marine services, coal mining, as well as jet fuel and petrochemical product suppliers.

  • In Oct 2019, SGX’s Energy/Oil & Gas sector generated a total return of 7.6%, the second straight month of positive returns after Sept’s +0.3%, and reversing Aug’s -8.9% total return. This comes after WTI crude gained more than 10% since early Oct, as Washington and Beijing showed signs of progress in resolving their trade dispute.

  • In the current quarter-to-date, the 3 best-performing energy/oil & gas-related stocks with market cap above S$100 million were: Rex International (+144.9%), PACC Offshore Services (+115.0%) and Mermaid Maritime (+56.1%). The trio averaged a QTD total return of 105.3%, bringing their YTD total return to 95.7%.




Singapore is a focal point for the oil and gas industry, as the city-state is Asia’s largest physical oil trading hub and price discovery centre. SGX lists 12 energy/oil & gas-related stocks with market capitalisation above S$100 million.  These 12 players have a combined market cap of more than S$18 billion. They represent a microcosm of upstream and downstream operations, spanning the following sub-segments: oil exploration and production, subsea and offshore drilling services, offshore oil and gas contractors, offshore marine services, offshore systems integration and precision engineering services, coal mining, as well as jet fuel and petrochemical product suppliers.

In the month of October, SGX’s Energy/Oil & Gas sector generated a total return of 7.6%, the second straight month of positive returns after September’s +0.3%, and reversing the -8.9% total return in August.



SGX’s Energy/Oil & Gas Sector Return

Source: Bloomberg & SGX



WTI crude prices have gained more than 10% since early October as Washington and Beijing moved closer towards resolving their trade dispute, which has weighed on market sentiment, oil demand and global growth. Earlier this week, crude held near eight-week highs – just below US$60 a barrel – on signs of progress towards a breakthrough in US-Sino trade negotiations.


WTI crude oil prices

Source: Bloomberg



In the current October-December quarter-to-date, the three best-performing energy/oil & gas-related stocks with market cap above S$100 million were: Rex International (+144.9%), PACC Offshore Services (+115.0%) and Mermaid Maritime (+56.1%). The trio averaged a QTD total return of 105.3%, bringing their year-to-date total return to 95.7%.

Note that earlier this month, Malaysian tycoon Robert Kuok's Kuok group of companies announced a voluntary conditional cash offer for PACC Offshore Services Holdings (POSH) at $0.215 per share in cash. The offer is conditional on receiving valid acceptances of at least 90% of outstanding shares in POSH. The offeror has also secured irrevocable undertakings representing 75.03% of the total number of shares outstanding from Kuok (Singapore) Ltd and its wholly owned subsidiary Camsward Pte Ltd.


The table below details the 12 energy/oil & gas-related stocks with market cap above S$100 million on SGX, sorted by QTD total returns.

Name SGX
Code
Market
Cap
S$m
Total
Return
4Q-To-Date
%
Total
Return
2H-To-Date
%
Total
Return
YTD
%
REX INTL 5WH 253 144.9 165.3 247.3
PACC OFFSHORE SERVICES U6C 390 115.0 39.6 21.5
MERMAID MARITIME DU4 153 56.1 45.1 18.4
DYNA-MAC HLDGS NO4 134 27.3 15.6 10.5
KEPPEL CORP BN4 12,442 16.0 4.6 20.4
CHINA AVIATION OIL G92 1,084 8.6 -4.5 23.0
SEMBCORP MARINE S51 2,678 6.8 -16.6 -18.2
GOLDEN ENERGY AND RESOURCES AUE 395 1.2 -20.7 -22.5
CIVMEC LTD P9D 193 0.0 16.7 -3.8
NORDIC GROUP MR7 102 -3.7 -13.4 -33.2
GEO ENERGY RE4 193 -8.7 -11.1 -17.2
SINOSTAR PEC C9Q 115 -14.5 -1.1 3.0

Source: Bloomberg & StockFacts (data as of 15 Nov 2019)







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