This article was originally published on SGX's investor education portal, My Gateway, and is republished with permission.
|Energy was the Strongest of the Sectors in September|
During September the price of crude oil gained 7.9% while the price of thermal coal gained 15.6%. The oil market received one of its biggest surprises in recent memory when an informal OPEC meeting on 28 September in Algeria yielded what looked like the first agreement the cartel has reached since 2008 (click here to read more). Initial details indicated an output level of between 32.5-33 million barrels per day, (bpd) a cut of between 240,000-740,000 bpd from current production of 33.24 million bpd.
Singapore’s Energy Sector has been highly cyclical over the past 12 months, ranking as the best performing sector of the month for three of the last 12 months, and least performing sector for four of the last 12 months. As illustrated below, the Energy Sector took poll position in September as it generated a 4.7% market capitalisation weighted total return for the month.
The next best performing sectors were the Real Estate Management & Development sub-sector and the Materials Sector. The monthly market capitalisation total returns of the respective sectors over the past year are illustrated in the table below using Global Industry Classification Standard (GICS®) sector definitions. Combined, the indicative total returns of the best performing sector for each month of the past 12 months came to 83.2% and the indicative decline in total return for the least performing sector for each month of the past 12 months came to -45.5%.
Source: SGX & Bloomberg, Indicative GICS ® Sector performance weighed to market cap at each month end, in SGD and dividend inclusive.
In the 2016 to date, the 10 largest energy stocks listed on Singapore Exchange (SGX) averaged a year-to-date total return of -12.6%. However, the average total return of the 10 stocks generated for the month of September was 9.0% up from an average decline of 7.4% in the August. Performances of Singapore’s 10 biggest energy stocks in September ranged from a 12.3% decline for CH Offshore to a 46.2% gain for Ezra Holdings.
The Oil and Gas Storage equipment and services sub industry makes up more than half of the 10 stocks while two stocks represent the Gas Storage and Transportation sub industry. Only one stock is represented by the Coal and Consumable Fuels sub industry and Oil & Gas Exploration & Production sub industry. The table below details the 10 biggest Singapore-listed energy stocks and are sorted by market capitalisation. Click on each stock to visit its profile page on SGX StockFacts.
|Name||Market Cap in S$M||Total Return YTD %||Total Return July 2016 %||Total Return Aug 2016 %||Total Return Sep 2016 %||GICS® Sub Industry Name|
|China Aviation Oil Singapore||1159||95.3||18.7||-2.7||-5.6||Oil & Gas Storage & Transportation|
|CEFC International||783||-51.3||-4.8||-0.5||-7.0||Oil & Gas Storage & Transportation|
|PACC Offshore Services Hold||571||6.4||-2.7||-12.7||1.6||Oil & Gas Equipment & Services|
|Ezion Holdings||570||-50.2||-36.2||-26.7||25.0||Oil & Gas Equipment & Services|
|Boustead Singapore||423||-0.5||0.0||-2.0||5.9||Oil & Gas Equipment & Services|
|CH Offshore||226||-13.5||-10.4||5.8||-12.3||Oil & Gas Equipment & Services|
|Ezra Holdings||168||-42.4||-31.5||-22.0||46.2||Oil & Gas Equipment & Services|
|Geo Energy Resources||167||-1.4||-13.3||30.6||7.8||Coal & Consumable Fuels|
|KrisEnergy||160||-35.5||-12.9||-29.7||18.9||Oil & Gas Exploration & Production|
|Mermaid Maritime PCL||143||-32.7||-5.3||-14.0||9.8||Oil & Gas Equipment & Services|
Source: SGX, Bloomberg & SGX StockFacts (data as of 30 September 2016)
Note that Rex International ranked among the 10 actively traded stocks listed on SGX that saw the biggest increase in their traded volume in September, compared to respective three month average volumes – for more information click here. Rex International Holding Limited operates as an independent oil exploration and production company. It operates through Oil and Gas, and Non-Oil and Gas segments.
The company offers a suite of technologies, including Rex Gravity, an exploration technology that finds areas with suitable geological conditions for hydrocarbon accumulations; and Rex Seepage, a tool that is used to spot oil seepages offshore in order to understand the potential presence of oil reservoirs in the sub-terrain. It also provides Rex Virtual Drilling, a liquid hydrocarbon indicator, which uses seismic data to search for oil; and Rexonic, an ultrasound technology for commercial oil well stimulation. In addition, the company is involved in the oil and gas exploration and production activities with concessions located in Oman, the United Arab Emirates, Norway, the United States, and Trinidad & Tobago, as well as in Australia.
Rex International Holding Limited was incorporated in 2013 and is headquartered in Singapore. To see its full profile in SGX StockFacts – please click here.
Singapore is a key hub for oil and gas as it is Asia’s largest physical oil trading hub and price discovery centre. Over 80% of the top 30 Oil & Gas companies can be found in the city-state. Furthermore, Singapore is the world’s largest bunkering port and has the largest independent oil storage capacity in Asia of 10 million cubic metres. For more information click here – please also note that the next Education Event on Singapore’s Energy Sector will be 21 November.