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.
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.
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)
