7 Best Energy Stocks in Singapore: 2022 Picks To Not Miss!

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7 Best Energy Stocks in Singapore: Don’t Miss These Out!

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best energy stocks singapore

Table of Contents

Energy companies are involved in the exploration, production, refining, distribution, and sale of crude oil, natural gas, coal, and other fossil fuels.

With the rising demand for oil and gas due to the geopolitical tensions globally, many are seeing energy stocks surging in prices.

What are some energy stocks that you should consider investing in?

7 Best Energy Stocks in Singapore

  1. Rex International Holding Limited
  2. Golden Energy and Resources Limited
  3. Geo Energy Resources Limited
  4. RH PetroGas Limited
  5. Hai Leck Holdings Limited
  6. PEC Ltd
  7. China Aviation Oil (Singapore) Corporation Ltd

 

Stock Ticker Current Share Price

(SGD)

P/E Ratio P/B Ratio Dividend Yield
Rex International Holding Limited SGX: 5WH 0.41 12.84 2.7 N/A
Golden Energy and Resources Limited (GEAR) SGX: AUE 0.32 4.86 1.1 N/A
Geo Energy Resources Limited  SGX: RE4 0.46 6.27 0.98 9.03%
RH PetroGas Limited SGX: T13 0.21 10.34 6.7 N/A
Hai Leck Holdings Limited SGX: BLH 0.46 10.61 1.37 8.79%
PEC Ltd SGX: IX2 0.56 6.00 0.6 4.46%
China Aviation Oil (Singapore) Corporation Ltd  SGX: G92 0.91 10.16 0.69 2.84%

1. Rex International Holding Limited (SGX: 5WH)

Rex International Holding Limited is an oil exploration and production firm that works as an independent entity. It operates in 2 segments: namely oil and gas and non-oil and gas.

On top of that, the company sells Rex Virtual Drilling, a liquid hydrocarbon indicator that searches for oil using seismic data.

Oil and gas exploration and production are the company’s main activities, with a concentration on Oman and Norway.

Five years performance chart

Rex International Holding share price

  STI Benchmark Rex International Holding Limited  Difference
1-Year Returns 15.7% 141.18% 125.48%
5-Year Returns 28.2% 485.71% 457.51%

The shares are currently trading at S$0.41 to deliver a market capitalisation of S$539.36 million. The P/E and P/B ratios are currently at 12.84 and 2.7 respectively. There’s no dividend history available for REX International Holding Limited.

The stock price had moved by +141.18% over the past year. In terms of relative price strength, the price has outperformed the STI by +123.48% over the past year.

Likewise, the share has demonstrated a history of great results whereby it has performed better than the STI by +457.51% over the last 5 years.

In my view, the share is a Strong BUY, falling under the Momentum Trap classification.

In the last year, there was a rebound in oil prices after a plunge that was witnessed during the COVID-19 pandemic.

The rebound was attributed to the easing of lockdowns and restrictions by countries. Additionally, OPEC agreed to significant cuts in the production of crude oil.

Going forward there is optimism about the rollout of vaccinations which will help buoy the market. Notably, Brent crude oil prices surged to up to $43 per barrel.

2. Golden Energy and Resources Limited (GEAR) (SGX: AUE)

GEAR is a Singaporean company dealing in the exploration, extraction, and selling of coal and coal in Indonesia and Australia. Mining and sale of energy coal is their main activity.

The company serves both domestic and international consumers. Forestry, investment holding companies, management services, and gold mining, are all part of the non-coal division.

Five years performance chart

Golden Energy and Resources share price

  STI Benchmark Golden Energy and Resources Limited Difference
1-Year Returns 15.7% 100% +84.3%
5-Year Returns 28.2% -40.74% -68.94%

The shares are trading at S$0.32 to deliver a market capitalisation of S$752.99 million. Additionally, the company has a P/E and P/B ratio of 4.86 and 1.1 respectively. However, it has no history of dividend payout.

Even though the share underperformed the STI by -68.94% over the last 5 years, the last 12 months witnessed a massive growth of +100%.

The main factor that contributed to a spike in the share price is the significant improvement in the company’s revenues and earnings for the year 2021.

Even though there were coal weaknesses witnessed in 2020 due to the effects of the COVID-19 pandemic the coal revenue segment registered high profits due to higher average selling prices and an increase in sales volume.

Moving forward, the company will without a doubt continue to diversify its product and revenue mix.

For instance, the company through its subsidiary, Stanmore Resources Ltd, plans to complete the acquisition of Millennium and Mavis Downs Mine. This is a major milestone because the acquisition will provide a bulk of its coal mining exploration and production.

In my opinion, the share is a Super Stock which means it’s capable of selling for up to 10x its value in the next 3 to 5 years. Additionally, looking at the macro factors, the share is a Strong Buy for investors.

3. Geo Energy Resources Limited (SGX: RE4)

Geo Energy Resources Ltd is an investment holding company and a significant coal producer. Besides that, its main area of operation includes mining, production, and sale of coal.

Some of the important divisions include Mining Services, Coal Mining Services and Coal Trading. In addition, the mining concessions are located towards the East and South of Kalimantan.

Five years performance chart

Geo energy resources share price

  STI Benchmark Geo Energy Resources Limited  Difference
1-Year Returns 15.7% 158.33% 142.63%
5-Year Returns 28.2% 72.22% 44.02%

The shares are currently selling at S$0.46 to deliver a market capitalisation of S$660.32 million. The P/E and P/B ratios are 6.27 and 0.98 indicating that the shares are undervalued with a potential to bounce back.

In the last year, the company paid a dividend of S$0.01 with the dividend yield being 3.93% over a trailing 12-month period.

The company offers a positive insight for investors because coal prices have been on an upward trajectory.

Therefore the company’s revenues are potentially immense based on the rising coal prices. As well, the prices are expected to stay steady at least in the near future.

The share is a Super Stock which means that it will maintain a positive momentum in the coming years.

Therefore, for an investor, it’s a STRONG BUY since all positive signals indicate that it will appreciate in value.

4. RH PetroGas Limited (SGX: T13)

RH PetroGas Limited is a Singapore-based company dealing in production of oil and gas.

The company has significant interests in the production sharing contract with Kepala Burung, SK331, and Salawati Kepala Burung.

The company covers a huge region under these areas where it explores gas and oil.

Five years performance chart

RH Petrogas share price

  STI Benchmark RH PetroGas Difference
1-Year Returns 15.7% 600% 584.3%
5-Year Returns 28.2% 110% 81.8%

The share is currently trading at S$0.21 to deliver a capitalisation of 170.29 million. Also, the P/E and P/B ratios are 10.34 and 6.7 respectively. The company has no history of dividends payouts.

Over the past year, the price has risen massively by 600%, whereas in the last 5 years it has overperformed the base index by +81.8%.

The share classification is a Turnaround whereas I recommend a BUY partly owing to the low price it offers.

Looking at the figures the stock was performing poorly, but suddenly picked up in 2021.

Therefore, it’s a good indication that it’s a turnaround and it’s no longer beaten down by the impact caused by the pandemic.

The jump could also be attributed to increases in crude oil prices in 2021 occasioned by the loosening of COVID-19 restrictions. Also, the global economy opened up and there was a demand for petroleum products.

5. Hai Leck Holdings Limited (SGX: BLH)

Hai Leck Holdings Limited is an investment holding company based in Singapore engaging in engineering, construction, and procurement of services for oil and gas industries. It also provides services to pharmaceutical as well as utility companies.

Besides that, it offers contact centre services such as live website chat, redemption facilities, lead generation, and virtual receptionist services.

Five years performance chart

Hai Leck Holdings share price

  STI Benchmark Hai Leck Holdings Limited  Difference
1-Year Returns 15.7% -14.15% -29.85%
5-Year Returns 28.2% -17.27% -45.47%

Presently the share price is trading at S$0.46 to deliver a market capitalisation of S$103.10 million. The P/E and P/B ratios are currently at 10.61 and 1.37 respectively.

The company paid a dividend of S$0.04 and presently, its trailing dividend yield is 8.79%.

The share price has shrunk by -14.15% over the last year, while it has descended by -17.27% over a period of 5 years. Equally, it has underperformed the base index by -29.85% over the last year.

In my opinion, the share falls under SUPER STOCK classification and is a BUY.

The share price has shown some erratic performance over the last 5 years. As you can see from the chart, the share price had a major decline in 2020 caused by the pandemic.

However, it climbed in 2021 before showing signs of decline.

Going forward, the performance of the share will depend on the demand for its services as the energy industry grow and expand their production to meet demand.

6. PEC Ltd (SGX: IX2)

PEC Ltd. is a Singaporean-based company dealing in contracting and mechanical engineering services. Typically it has energy divisions including petrochemicals, oil, gas, petroleum, as well as chemical terminals.

The company also deals with clean energy production through its subsidiary PEC Process Systems Pte Limited.

Five years performance chart

PEC Ltd share price

  STI Benchmark PEC Ltd SGX: IX2 Difference
1-Year Returns 15.7% +27.27% +11.57%
5-Year Returns 28.2% -12.50% -40.7%

Presently, the share is trading at S$0.56 to deliver a capitalisation of S$143.20 million. The P/E and P/B ratio are at 6.0 and 0.6, meaning that the share is potentially undervalued.

Additionally, the company paid a dividend of S$0.03, registering a dividend yield of 4.46% over a current trailing 12 month period.

Looking at the performance, the share fell significantly in 2020 due to the impact caused by the pandemic. However, as measures were relaxed, it has been rising steadily from 2021.

In my view, the share is a SUPER STOCK and a BUY and HOLD stock.

As oil and gas prices continue to rise, so will the company revenues. Therefore, investors can expect higher prices in the future as well as stable dividend payouts.

Also, because the world is leaning towards clean energy, it’s proof that PEC Ltd is a company of the future and therefore, investors can have a guarantee that it will still exist in many years to come.

7. China Aviation Oil (Singapore) Corporation Ltd (SGX: G92)

China Aviation Oil (Singapore) Corporation Limited is a Singaporean based company trading in jet fuel.

The company also sells other related oil products. It operates 3 major divisions including Investments in oil-related products, middle distillates, and other oil products such as gasoline and gas oil.

The company is a major supplier of jet fuel to China’s civil aviation industry, Hong Kong, the USA, and Europe.

Five years performance chart

China Aviation Oil share price

  STI Benchmark China Aviation Oil (Singapore) Corporation Ltd Difference
1-Year Returns 15.7% -20.18% -35.88%
5-Year Returns 28.2% -38.93% -67.13%

The share is trading at S$0.91 to deliver a market capitalisation of S$788.23 million. On the same note, the company has a P/E and P/B ratio of 10.16 and 0.69 indicating that it’s an undervalued share.

In my view, the share is Neutral and suitable for investors who would like to BUY and HOLD as the hidden bargains are worth waiting for.

Looking at the figures, the company has performed below the STI for the last 1 to 5 years at -35.88% and -67.13 respectively.

Despite the underperformance, the company has paid a dividend of S$0.01 at a 2.84% dividend yield over a 12-month period.

As you already know, the aviation industry took a major hit from the COVID-19 pandemic where major airlines grounded their planes.

This meant that companies could no longer buy jet fuel which affected the fortunes of companies such as China Aviation Oil Ltd.

However, there is optimism in the industry because countries have opened up their airspaces and air travel is back to full momentum. Going forward we expect the profits to increase which will translate to better share prices in the future.

Conclusion

There you go! We’ve covered a few energy stocks in Singapore, but there are many others available.

It’s always good to do research before investing in anything, especially when it comes to stock picking.

If you’re interested in these stocks, check out our guide to the best online brokerages in Singapore so that you can use the best one for yourself.

However, if you’re unsure, always get help when planning to invest.

Our partner financial advisors can help you invest your hard-earned money so that they work hard for you!

Disclaimer: Each article written obtained its information from reliable sources and should be purely used for informational purposes only. The information provided by Singapore Financial Planners and its affiliated parties is not meant to be construed as financial advice. Singapore Financial Planners shall not be held liable for any inaccuracies, mistakes, omissions, and losses incurred should you act upon any information listed on this website. We recommend readers to seek financial planning advice from qualified financial advisors. 

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