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Highlights
- Liz Truss came up with a multibillion pound 'Energy Price Guarantee' to tackle the ongoing surge in energy bills last week.
- A major economist has termed the government’s decision of not giving details about how it will pay for its rescue package as "extraordinary".
- Experts are anticipating that the cost of the energy bills rescue package would go up to £150bn.
Last Thursday, in her first key intervention as the UK’s new PM, Liz Truss came up with a multibillion-pound 'Energy Price Guarantee' to tackle the ongoing surge in energy bills. According to a major economist, the decision of the government not to give details about how it will pay for its rescue package is "extraordinary". Experts are anticipating that the cost of the energy bills rescue package would go up to £150bn.
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Energy costs are skyrocketing at a rapid pace, pushing households towards poverty. Ahead of a rough winter, in which poor households would be forced to choose between staying warm and keeping their bellies full, the government is seeking to freeze the energy bills for Brits to prevent them from becoming destitute this winter.
The energy price cap was due to hit £3,549, but under the rescue plan, the price cap would be set at £2,500. The difference between the costs will be financed by the government. Over the next six months, a similar support package would be received by the businesses as well. The scheme will be evaluated over the next three months to keep a check on how smaller businesses struggling with rising energy prices can be given the needed support going forward.
Amid the soaring energy bills, UK investors can explore the following energy stocks which have offered decent returns this year.
Hunting plc (LON: HTG)
The market cap of the company offering energy equipment & services, Hunting plc, stands at £476.68m as of Tuesday. The company has provided its shareholders with a YTD (year-to-date) return of 70.80% as of 13 September, while its one-year return stands at 43.07%. HTG shares were trading at GBX 289.00 at 8:00 AM (GMT+1) as the market opened on Tuesday. It is presently offering investors an annual dividend yield of 2.6%, but its EPS (earning per share) lies in the negative zone, at -0.53.
EnQuest plc (LON: ENQ)
The market cap of the independent enterprise centred on petroleum production, EnQuest plc, stands at £592.18m as of Tuesday. The company has provided its shareholders with a YTD return of 67.74% as of 13 September, while its one-year return stands at 45.71%. ENQ shares were trading at GBX 31.40 at 8:00 AM (GMT+1) as the market opened on Tuesday. Its EPS currently lies in the positive zone, at 0.22.
Energean plc (LON: ENOG)
The market cap of the worldwide operating producer of hydrocarbons, Energean plc, stands at £2,588.71m as of Tuesday. The FTSE 250 company has provided its shareholders with a YTD return of 70.06% as of 13 September, while its one-year return stands at 97.55%. ENOG shares were trading at GBX 1,455.00, up by 0.07%, at 8:00 AM (GMT+1) as the market opened on Tuesday. It is presently offering investors an annual dividend yield of 1.8%, but its EPS lies in the negative zone, at -0.54.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
