• The iEdge SG Oil & Gas Index is a free-float, market capitalisation-weighted index that measures the performance of listed oil and gas (O&G) companies in Singapore. The 15 constituents in the Index have a combined market capitalisation of about S$2.6 billion.
  • During the July to September 2018 quarter, the five best-performing constituents of the Index were: Rex International (+140.0%), KrisEnergy (+18.9%), Falcon Energy (+16.7%), China Aviation Oil (+3.4%), and AusGroup (+2.5%). These five stocks have averaged a 3Q18 total return of +36.3%.
  • In 3Q18, the share prices of these five O&G plays have also rebounded substantially from their 12-month troughs – averaging a 69.3% increase from their respective 52-week lows – in line with WTI’s gains. Crude has risen about 17% since mid-August, and remains near a four-year high, on fears of a supply crunch, following a disruption in oil exports from Iran and declining production in Venezuela.

SGX Oil & Gas Plays Track Crude’s Gains

The iEdge SG Oil & Gas Index is a free-float, market capitalisation-weighted index that measures the performance of listed oil and gas (O&G) companies in Singapore. The 15 constituents in the Index – which comprise companies in the exploration, production, storage and transport of oil and gas – have a combined market capitalisation of about S$2.6 billion.

In the July to September 2018 quarter, the five best-performing constituents of the Index in terms of total returns were: Rex International (+140.0%), KrisEnergy (+18.9%), Falcon Energy (+16.7%), China Aviation Oil (+3.4%), and AusGroup (+2.5%). These five stocks have averaged a 3Q18 total return of +36.3%.

During the quarter, the share prices of these five O&G plays have also rebounded substantially from their 12-month troughs – averaging a 69.3% gain from their respective 52-week lows. In particular, Rex International, Falcon Energy, AusGroup and KrisEnergy have registered price increases of 170.0%, 82.6%, 46.4% and 39.5% respectively from their 12-month lows.

Crude Holds at Four-Year Highs

Crude oil has gained about 17% since mid-August, and remains near a four-year high, on fears of a supply crunch following a disruption in oil exports from Iran and declining production in Venezuela. While Saudi Arabia and Russia have agreed to boost output, concerns linger over whether the Organization of Petroleum Exporting Countries (OPEC) and its allied producers will be able to offset the supply losses.

West Texas Intermediate (WTI) for November delivery climbed to US$76.41 a barrel on the New York Mercantile Exchange yesterday, its highest level since November 2014.

WTI-chart

The table below details the 15 constituents of the iEdge SG Oil & Gas Index, sorted by 3Q18 total returns. Click on the stock name to view its profile in StockFacts.

O&G-table

Key MOE Stocks Move in Tandem

Apart from O&G stocks, the key Maritime & Offshore (MOE) plays on SGX have also gained in line with oil’s advance. The iEdge SG MOE Index is a free-float, market capitalisation-weighted index that measures the performance of listed MOE companies in Singapore. Constituents in the index include shipyard operators, shipping companies and companies providing offshore services.

In the month of September 2018, the five best-performing constituents of the iEdge SG MOE Index were: Sembcorp Marine (+21.4%), Yangzijiang Shipbuilding (+15.9%), Sembcorp Industries (+13.2%), Mermaid Maritime (+11.2%) and COSCO Shipping International (+10.7%). These five plays averaged a total return of +14.5% during the month.