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Oil & Gas Index: 11% total return over 12 months

  • Singapor's FTSE ST Oil & Gas Index generated a 10.8% total return over the 12 months ending 30 November.
  • The FTSE ST Oil & Gas Index was also the least volatile sector index of the FTSE ST Index Series for the period. Over the same period of time, the regional benchmark, the FTSE Asian Oil & Gas Index gained 1.5%.
  • The 23 largest stocks that make up the Oil & Gas sector, as categorised by the ICB, averaged a total return of 26.7% and generated a median total return of 9.5% in the 12 months through to 3 December.

The Oil & Gas industry can be divided into three major sectors: upstream (exploration and production), midstream (transporting oil and natural gas) and downstream (refining oil and natural gas).
Over the 12 months ending November, the FTSE ST Oil & Gas Index has generated a total return of 10.8%. It was the second best performing index with a total return of 3.1% for the month of November.

Over the 12 month period ending November, the Singapore FTSE ST Oil & Gas Index has outperformed the FTSE Asian Oil & Gas Index which gained 1.5%.

The FTSE ST Oil & Gas Index is made up of 16 stocks that are a part of the FTSE ST All Share Index and categorised to the Oil & Gas Industry by the Industry Classification benchmark (ICB). Of these 16 stocks, three are constituents of the Straits Times Index and they are Keppel Corporation, SembCorp Industries and SembCorp Marine. Many factors ranging from crude oil prices to the demand for new rigs and equipment, which is closely linked to the state of the economy, drive the share prices of these oil and gas stocks.

The largest of the stocks that are categorised to the Oil & Gas Industry by the ICB are detailed in the table below. These specific 23 stocks all have a market capitalisation above S$100 million and include a Catalist stock, Rex International.

For the period of 3 December 2012 through to 3 December 2013 these 23 stocks averaged a total return of 26.7% and generated a median total return of 9.5%.  All 16 stocks that make up the FTSE ST Oil & Gas Index are included in the list below.

Short Name

SGX Code

Market Cap (S$m)

Px Chg Pct:Y-1 (%)

Dvd Ind Yld (%)

Total Return:Y-1 (%)

KEPPEL CORP LTD

BN4

       20,428

9.8

3.3

13.6

SEMBCORP INDUS

U96

         9,640

6.3

2.8

9.5

SEMBCORP MARINE

S51

         9,174

-1.6

2.5

1.4

EZION HOLDINGS L

5ME

         2,531

84.4

0.0

84.5

EZRA HOLDINGS LT

5DN

         1,424

37.9

0.3

37.9

KRISENERGY LTD

SK3

         1,287

11.8

N/A

11.8

VARD HOLDINGS

MS7

            944

-42.2

N/A

-42.2

CHINA AVIATION

G92

            729

5.2

2.0

7.2

REX INTERNATIONAL*

5WH

            701

28.0

N/A

28.0

MERMAID MARITIME

DU4

            586

27.7

2.6

28.1

CHEMOIL ENERGY

AV5

            470

-20.5

N/A

-20.5

KREUZ HOLDINGS

5RK

            437

98.7

1.4

98.7

DYNA-MAC HOL LTD

NO4

            397

-13.0

4.9

-9.0

SWIBER HOLDINGS

AK3

            388

7.6

1.6

9.4

CIVMEC LTD

P9D

            378

-36.3

0.9

-35.4

CH OFFSHORE LTD

C13

            303

-4.4

3.5

-0.9

FALCON ENERGY GR

5FL

            299

62.2

1.4

64.6

KS ENERGY

578

            254

-27.8

N/A

-27.8

GAYLIN HOLDINGS

RF7

            253

56.0

1.4

58.1

TRIYARDS HOLDING

RC5

            207

-0.7

2.9

-0.7

INTERRA RESOURCE

5GI

            185

9.2

N/A

9.2

MTQ CORP LTD

M05

            177

84.2

2.9

89.2

MIRACH ENERGY LT

C68

            170

198.36

N/A

198.4

Source: Bloomberg (data as of 3 December 2013), * denotes Catalist stocks

The STI constituents are the three largest oil & gas stocks as classified by the ICB.

Keppel Corporation, the largest oil & gas company, had a market capitalisation of S$20.5 billion as of 02 December. It specializes in offshore and marine businesses, property investment and infrastructure and property development. The group has generated a total return of 13.6% over the past 12 months

SembCorp Industries is the second largest company on the list with a market capitalisation of S$9.6 billion. The company provides utilities and related services such as power, gas and steam for industrial sites. Its 12 month total return was 9.5%. The other STI constituent on the list, SembCorp Marine is the third largest oil & gas company. It has a market capitalisation of S$9.2 billion and is part of SembCorp Industries. It had a 12 month total return of 1.4%.

 


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Geoff Howie
Geoff Howie

Mr Howie is a Market Strategist at SGX, providing investment application and market updates to the market participants of the SGX. He is a key contributor to the educational materials on SGX My Gateway. He previously held lead broking and strategist roles in four Asia Pacific offices of MF Global, Macquarie Securities in Hong Kong and was also Treasury Adviser to the Coalition Leaders in the Queensland Parliament. He holds a Bachelors and Masters degree in Economics, the latter extending into deferred PhD work after receiving the highest grading for first-mover research and modelling conducted on the Shanghai economy. Mr Howie's other notable achievements include receiving two HKSI Outstanding Achievers/Candidate of the Year awards in 2005 and a commendation in the Queensland Parliament Hansard for his analysis on government finances when he was Treasury Adviser to the Coalition leaders.