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Summary
- The crude oil sector has gone through many challenges because of pandemic led lockdown, which has led to negative oil prices last year for a brief period of time.
- As per the market experts, the demand for crude oil is expected to bounce back as more restrictions and travel bans are lifted.
Crude oil and gas producers have gone through a challenging last year due to the Covid-19 pandemic and consequent lockdown, which resulted in suspension of operations at the refineries due to staff shortage. Also, the overall crude oil demand was lower during the period, which led to the unbelievable negative oil price for a brief time. But the successful rollout of vaccines towards the end of 2020 helped ease some restrictions, resulting in higher demand for fuel as the world gradually came out of lockdown.
Last month, crude oil prices crossed the USD 75 mark for the first time since 2018 after the OPEC+ group failed to agree on production policy. As per the market experts, the demand for fuel is expected to increase gradually as more restrictions and travel bans are lifted.
Let us take a look at 5 FTSE listed oil and gas stocks:
Royal Dutch Shell Plc (LON: RDSA)
The multinational oil and gas company is active in every oil and gas industry segment, from exploration of crude oil and natural gas to refining and distribution of fuel through gas stations.
The company reported USD 61764 million in total revenue in the second quarter of 2021 with a profit before tax of USD 4130 million and earnings per share of 0.44. The company has also announced a share buyback of USD 2 billion to be completed by the end of 2021. The purpose of the share buyback is to reduce the issued share capital of the company.
Royal Dutch Shell Plc current market cap stands at £60.60 billion as of 11 August 2021. In the last one year, the stock has given 26.22% returns to its shareholders.
Vivo Energy Plc (LON: VVO)
The company operates in the marketing and distribution of fuels and lubricants. The company has a network of over 2330 service stations in around 23 nations. The company’s stock is constituent of mid-cap focused FTSE 250 index.
For the six months ended 30 June 2021, the company reported an 18% rise in revenue at USD 3989 million. Adjusted EBITDA, which measures the profitability of the company, was also up by 57% at USD 220 million. The higher profits were driven by volumes recovery in the retail segment after an ease in lockdown restrictions which allowed free movement of vehicles.
Vivo Energy Plc current market cap stands at £1.35 billion as of 11 August 2021. In the last one year, the stock has given a 33.75% return to its shareholders.
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Cairn Energy Plc (LON: CNE)
The company is one of the leading independent energy companies which extracts oil, natural gas, and other petroleum products at different locations globally. The company’s stock is a constituent of the mid-cap focused FTSE250 index.
Cairn Plc wholly-owned subsidiary Capricorn Energy Mexico along with Eni has announced a new oil discovery in Block 10 located at Offshore Mexico. The new oil discovery could have 150 to 200 Mboe reserves in place, according to the initial estimate. Cairn Plc holds 15% working interest in Block 10, along with Eni and Lukoil holding the rest of the stake.
Cairn Energy Plc current market cap stands at £848.35 million as of 11 August 2021. In the last one year, the stock has given a 4.05% return to its shareholders.
BP Plc (LON: BP.)
The company has operations in over 80 countries and produces close to 3.7 million barrels of oil per day. The company’s stock has a primary listing on London Stock Exchange and a secondary listing on the New York Stock Exchange.
The company reported a strong result during the first half of this year with a total profit of USD 7783 million and a significant reduction in net debt. Also, the company has started its buyback program, which will continue till 1 November 2021. The maximum amount allocated by the company for the buyback is USD 1.4 billion, and the purpose of the buyback is to reduce the issued share capital of the company.
BP Plc current market cap stands at £62.42 billion as of 11 August 2021. The stock has given 4.81% return to its shareholders in the last one year.
Also Read: BP Invests in 9 GW US-Based Solar Projects
Energean Plc (LON: ENOG)
The company engages in the exploration and production of oil and gas. The company has 982 million barrels of proven oil reserves, and its flagship project is located in Israel. The company has a dual listing on the London and Tel Aviv Stock Exchange.
Energean Israel Limited, which is a 100% subsidiary of Energean Plc, has signed a drilling contract with Stena Drilling Limited for its 2022/23 drilling program in offshore Israel. The contract is for the drilling of three firm wells, with the first firm well drilling work expected to start in the first quarter of 2022.
Energean Plc current market cap stands at £1.19 billion as of 11 August 2021. The stock has given a 6.40% return to its shareholders in the last one year.