Discover SGX: Stocks to Watch Amid Rising Oil Prices

October 5, 2023

As brent crude oil futures rally, breaching the US$95/bbl mark, energy stocks worldwide have witnessed significant movements.

While Aramco globally maintains a flat performance, Exxon Mobil and Chevron have noted gains of around 4% in SGD terms.

Closer to home, SGX-listed energy stocks are making noticeable strides.

Here is a closer look at four SGX-listed energy stocks to watch: Rex International, Geo Energy Resources, RH Petrogas, and PTT Exploration & Production.

1. Rex International

Rex International Holding Ltd (SGX: 5WH), a multinational explorer and producer, has posted an impressive 35.7% gain from 31 Aug to 22 Sep, leading the trio of most traded energy stocks on the SGX.

The company’s commitment to its core oil & gas business and a significant 182% YoY increase in production from Norway underscore its strong market position.

Furthermore, upcoming tax receivables of US$63.6 million and an eye for acquiring more production projects bolster Rex International’s investment appeal.

2. Geo Energy Resources

Geo Energy Resources Limited (SGX: RE4), a prominent Indonesian coal producer, showcased resilience with a US$28 million net profit in H1 2023 amid normalising coal prices.

The firm’s adept handling of market shifts, coupled with a strategic investment in the Electric Vehicle business, Charged Asia Pte Ltd, positions it as a diversified energy player in the region.

Geo Energy’s proactive approach towards emerging industries while navigating coal price fluctuations makes it a noteworthy contender in the energy sector.

3. RH Petrogas

Despite facing a 24% YoY decrease in its 1HFY23 revenue due to fluctuating oil prices, RH Petrogas Limited (SGX: T13) stands resilient.

The company’s insights into the oil market’s volatility, underinvestment in global E&P, and OPEC’s influence on prices reflect a thorough market understanding.

RH Petrogas’s anticipation of a growing revenue share from natural gas, in line with global clean energy trends, presents potential growth avenues for investors.

4. PTT Exploration & Production

ASEAN’s largest listed petroleum exploration and production company, PTT Exploration & Production Public Company Limited (BK: PTTEP), is another key player.

With a market cap of S$25B and availability on SGX as Singapore Depository Receipts (SGX: TPED), the company has posted a higher-than-expected net profit of S$610 million in Q2 2023.

The firm’s ability to maintain unit cost and expectations of stable average sales volumes for 2023 underscore its consistent performance, making it a viable option for investors looking to capitalise on rising oil prices.

Rising oil prices could boost interest in energy stocks

The recent surge in oil prices has sparked movements across energy stocks globally.

In Singapore, Rex International, Geo Energy Resources, RH Petrogas, and PTT Exploration & Production emerge as stocks to watch.

With diverse strategies, resilient performances, and adaptive market approaches, these companies present compelling investment opportunities for those seeking to navigate and benefit from the evolving energy landscape.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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