U.S. spot natural gas prices has been soaring in the past month. Singapore’s dependency on imported natural gas as the raw material for 90% of our power mean that costs to businesses and households in Singapore are greatly affected by the global natural gas market.
As Asia’s largest physical oil trading hub and price discovery centre, Singapore is an important hub for the oil and gas sector.
Through its 16 constituent, the iEdge SG Oil & Gas Index tracks the performance and growth of upstream and downstream SGX-listed companies involved in the exploration, production, storage and transport of oil and gas.
The iEdge SG Oil & Gas Index gained 2.7% in the September month-to-date, bringing its 2018 year-to-date performance to -13.3%.
iEdge SG Oil & Gas Index (Source: SGX, Bloomberg; Data as of 17 September 2018)
To be eligible for index inclusion into the iEdge SG Oil & Gas Index, new constituents must either derive at least 50% of sales revenue from the oil & gas industry or maintain at least 50% of operating assets within the oil & gas industry. The stocks are also screened for liquidity based on their median daily traded value and median free-float market capitalisation.
iEdge – New Name For A Trusted Product
For those who are encountering the iEdge prefix for the first time, SGX recently revamped its SGX Index Edge indices with the new iEdge prefix on 3 September 2018. With this new naming convention, SGX will be expanding their market indices services offering into Europe and the Trans-Atlantic region.
Although SGX’s Index Edge service was just launched in October 2015 it has already grown to serve an expanding client base in partnership with leading investment banks, exchanges, asset managers and product issuers. To support this growth, SGX has established an office in London, which will function as the hub for client engagement and support outside of Asia Pacific.
For this week’s instalment of 4 Stocks This Week, we will look at 4 stocks within the iEdge SG Oil & Gas Index.
REX International Holding Limited (SGX: 5WH)
Headquartered in Singapore, REX International is a global oil exploration and production company. The group has major oil production interests are in key assets in Oman, Norway, the United States, and Trinidad and Tobago.
The company’s key differentiator is its proprietary exploration technologies, which can identify the location of oil reservoirs in the sub-surface using seismic data. It uses this expertise to de-risk its own oil exploration efforts, and offers screening service to other oil exploration companies to increase their success rate of finding oil above the industry average of between 10-15%.
On 18 September 2018, the stock recorded a 52-week high of S$0.114. It closed this week at S$0.109 (US$0.08), giving a year-to-date return of more than 94.6%.
AusGroup Limited (SGX: 5GJ)
Established in 1988 and headquartered in West Perth, Australia, AusGroup provides asset maintenance, construction, access, fabrication, and marine services to the energy, mining, and industrial sectors in Australia, Singapore, Thailand, and Malaysia.
In particular, the company’s Projects segment provides structural, mechanical and piping construction services, as well as painting, insulation, and fireproofing works.
Their Fabrication and Manufacturing segment offers turnkey solutions to the oil and gas sector for all phases of the asset lifecycle: including exploration, construction, commissioning, operation, maintenance and repair, and decommissioning.
The company’s Port & Marine Services segment offers a range of support services to the offshore oil and gas industry, including transport of heavy cargo to remote, undeveloped or environmentally-sensitive locations.
AusGroup closed at AUD$0.041 (S$0.041) this week, giving about 17.9% return year-to-date.
KrisEnergy Ltd. (SGX: SK3)
Based in Singapore, KrisEnergy focuses on the exploration, development, and production of oil and gas in Southeast Asia. Keppel Corporation Limited (SGX: BN4) is the largest single shareholder, owning 39.81% of the company.
The company has interests in 4 producing oil and gas fields, including 3 in the Gulf of Thailand and 1 in onshore Bangladesh. It also participates in 13 efforts for development, appraisal, and exploration of oil in Bangladesh, Cambodia, Indonesia, Thailand, and Vietnam.
KrisEnergy closed this week at US$0.079 (S$0.108).
SHS Holdings Ltd. (SGX: 566)
Founded in 1971 and headquartered in Singapore, SHS Holdings (formerly known as See Hup Seng Limited) primarily engages in grit blasting and painting for internal surfaces of chemical tankers, barges, and FPSO (floating, production, storage, and offload) vessels in Singapore, Malaysia, Vietnam, Thailand, Indonesia, the People’s Republic of China, Mongolia, Korea, and internationally.
The company also has a Solar Energy segment, which engages in the engineering, procurement, and construction of solar power projects, as well as the design and installation of air-conditioning and mechanical ventilation systems.
The Engineering & Construction segment designs, engineers, and constructs steel, aluminum, and glass structures; and offers design, construction, and manufacturing services in modular construction projects.
SHS Holdings closed at S$0.22 this week, giving it a market capitalisation of S$150.73 million.
Stay Up-To-Date With The Market
One easy way to stay updated with market news, price trends and financial information is to utilise stock investing and charting tools. If you’d like to try a stock investing and charting tool, DollarsAndSense has partnered with ShareInvestor WebPro to give you a headstart with a 3-months complimentary Dow Jones Market Talk subscription (worth over $30) and a free 8 GB memory drive today.
On the ShareInvestor WebPro investing and charting tool, you will receive a full suite of fundamental and technical data on stocks listed on the SGX as well as Malaysia, Hong Kong, Indonesia, US, Thailand and Australia. In addition, you can find detailed financial reports, news stories, financial ratios and utilise charting tools to aid in your stock analysis.
4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.
DollarsAndSense.sg aims to provide interesting, bite-sized and relevant financial articles.
Learn together with like-minded Singaporeans at the Personal Finance Discussion SG Facebook Group by discussing a range of personal finance topics.
If you have not done so, subscribe to our free e-newsletter to receive exclusive content not available anywhere else.