OREANDA-NEWS. Trading at US$66.32/bbl on Monday morning, the price of WTI Crude futures has rallied 9.8% in the 2018 year to date, from the 2017 year end close price of US$60.42.  By the same token, on 9 January, Indonesia's Ministry of Energy and Mineral Resources set its January thermal coal reference price at $95.54/MT, up 10.8% on the year and 1.6% from December.

The 10 largest capitalised stocks of Singapore’s Energy Sector, which include both Oil and Coal-related stocks have rallied in tandem, averaging a 13.2% price gain over the period. Of the total 24 stocks that make up Singapore’s Energy Sector, there have been 18 gainers, while three have remained unchanged and three have declined. The full suite of 24 stocks that make up the Sector have averaged an 11.3% gain over the period.

While the average month-to-date return of the 10 largest capitalised Energy stocks has outpaced the Straits Times Index’s (STI) return of 5.0%, the price volatility of these stocks has been historically much higher than the STI constituents. Over the past year, the 10 Energy stocks averaged volatility of 60.3%, compared to 18.8% for the 30 STI stocks.

In SGD terms, the MSCI World Energy Index has gained 3.8% in the month-to-date, following a price decline of 5.7% in 2017. The 10 largest capitalised stocks of Singapore’s Energy Sector are tabled below. Of the 10 stocks, China Aviation Oil Singapore, Golden Energy & Resources, Anan International , Geo Energy Resources  And Mermaid Maritime PCL maintain an average P/E ratio of 25x.

 

Of the 10 stocks tabled above, seven have advanced, while three remain unchanged. Of the 10 stocks – three stocks are involved in exploration Golden Energy & Resources, Geo Energy Resources and KrisEnergy. The best performers among the 10 in the month-to-date were AnAn International, Mermaid Maritime PCL and PACC Offshore Services Holdings.

Back in November, AnAn International reported a group net profit of US$6.0 million for its 3QFY17 (ending 30 Sep), as compared to US$2.2 million for 3QFY16, up US$3.8 million. For the 9MFY17, net profit rose 1,163% to US$14.23 million compared to US$1.13 million in 9MFY16, mainly attributable to higher profitability from its trading business. The stock, formerly known as CEFC International, is expected to report its FY17 results by the end of February.

Similarly, of the 20 largest capitalised stocks in the Industrials Sector, the two rig builders (Keppel Corp and Sembcorp Marine) have ranked amongst the three best performing stocks in the month to date. Together the best performing stocks of the 20 largest capitalised Industrial stocks: Sembcorp Marine, Cosco Shipping International and Keppel Corp averaged 29.8% gains for the period.

COSCO Shipping International (Singapore) recently announced the close of its offer for Cogent Holdings and provided an update on the final level of acceptances (98.31%). COSCO Shipping International has stated the disposal of its shipyard businesses will enable the company to exit from a loss-making business and create opportunities to invest in new businesses that will support China’s Belt and Road Initiative (BRI). The Company’s shipyard operations in China have been classified as discontinued operations.