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Highlights
- The crude oil price has rebounded from the recent lows supported by the weakness in dollar.
- There are many FTSE oil and gas sector stocks like Chariot Limited, Vivo Energy that have been performing well over the period.
Crude oil prices have witnessed a good bounce back from recent lows. Brent oil and WTI Crude oil, the two benchmark indexes which keeps track of crude oil prices, suffered their biggest fall in more than nine months, sliding over 8% last week. However, there was a sudden jump in prices on the first day of the week, supported by a weaker dollar. Now all eyes are on the Jackson Hole symposium in the US and the comments of FOMC members.
Investors have kept a cautious approach as the recent rise in delta variant cases globally could derail the economic recovery and lower demand for the fuel. Also, the risk of inflation and tapering of central bank stimulus resulted in a recent sell-off in crude oil.
The recent correction in the crude oil prices also impacted FTSE listed stocks that operate in the oil exploration and refining segment.
Let us look at some of the lesser-known stocks from the oil and gas sector that could be a potential investment opportunity for investors looking at oil and gas space:
Vivo Energy Plc (LON: VVO)
The company engages in the retailing and distribution of fuel and lubricants. The company operates in retail and commercial segments and has a network of over 2300 service stations in 23 countries.
Vivo Energy reported a significant recovery in revenue and gross profit during the first half of 2021. Revenue was up by 18% at USD 3,989 million, while gross profit was up by 31% at USD 343. The revenue was up mainly due to a recovery in volumes, especially in the retail segment, where volumes were up by 18% ahead of H1 2020. In addition, the company has declared an interim dividend of 1.7 cents per share which will be paid to eligible shareholders by 10 September 2021.
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Vivo Energy Plc shares closed at GBX 108.60, and its market cap stands at £1322.69 million as of 24 August 2021. The stock has given a 48.77% return to shareholders in the last one year.
Chariot Limited (LON:CHAR)
The company is into oil and gas exploration with main assets in the African continents.
The company reduced its overhead annual cash expense from USD 4.5 million to USD 2.5 million through restructuring. Also, the company had a 2020 year-end cash position of USD 3.7 million. The company has a positive outlook with a secure rig in a low-cost environment and a proven resource base.
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Chariot Limited shares closed at GBX 5.76, and its market cap stands at £36.68 million as of 24 August 2021. The stock has given a 205.12% return to shareholders in the last one year.
Energean Plc (LON: ENOG)
The company operates in the exploration and development of oil and gas reserves. It has main operations in Europe and Israel and has 982 million barrels of oil reserves. The company’s stock is a constituent of the mid-cap focused FTSE250 index.
The company reported a 15% higher production in the four months to 30 April 2021. Also, the company expects to start the first production from the Karish site in 2022. In addition, the company’s subsidiary, Energean Israel Limited, has signed a drilling contract for its offshore Israel site. The contracts for drilling three firm wells have been given to Stena Drilling Limited.
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Energean Plc shares closed at GBX 660.00, and its market cap stands at £1169.13 million as of 24 August 2021. In the last one year, the stock has given a 13.44% return to shareholders.
Related Read: 3 FTSE oil and gas stocks in focus after OPEC maintains 2021 demand forecast
NWF Group Plc (LON: NWF)
The company operates in the retailing and distribution of fuel oil for domestic heating and industrial use through a network of 19 depots. It also has operations in the food and feed segment.
The company reported £675.6 million in revenue mainly due to solid heating oil demand supported by cold winter and increased home working during the pandemic. The company’s board has also recommended a final dividend of 6.2p per share, an increase of 4.3% compare to the prior year to be paid on 10 December 2021.
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NWF Group shares closed at GBX 215.00, and its market cap stands at £105.64 million as of 24 August 2021. In the last one year, the stock has given a 13.16% return to shareholders.
