Australian Energy Sector Shows Potential For Earnings Growth

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What’s on offer in the Australian energy sector? We tapped the databanks at our data provider to take a look at the top stocks by market cap. The entire sector sports a cumulative market cap of AU$117 billion, which is just 6.6% of the total market cap of the ASX/200. By comparison, energy sector stocks make up 11.6% of the S&P 500 (financials have the largest weighting at 20%, IT at 16%, followed by energy, then Industrials at 11.5%, and Healthcare at 11.4%).

In the Australian energy sector, the top ten stocks make up over 78% of the sector. You can see them below. There are some obvious energy blue chips in that list. And even if the sector doesn’t earn a larger weighting, the potential for earnings growth is evident.

S&P/ASX 200 Energy
Mcap of Sector – $117.71 billion

Stock Code Stock Name Price MCAP($M) MCap of stock as % of Sector
WPL WOODSIDE PETROLEUM LIMITED $52.61 36,213.1 30.8
WOR WORLEYPARSONS LIMITED $44.29 10,132.1 8.6
STO SANTOS LIMITED $15.52 9,086.4 7.7
ORG ORIGIN ENERGY LIMITED $9.92 8,677.9 7.4
CNA COAL & ALLIED INDUSTRIES LIMITED $82.00 7,100.0 6.0
CTX CALTEX AUSTRALIA LIMITED $23.78 6,420.6 5.5
OSH OIL SEARCH LIMITED $4.30 4,813.8 4.1
PDN PALADIN RESOURCES LIMITED $6.98 4,206.8 3.6
ERA ENERGY RESOURCES OF AUSTRALIA LIMITED $18.54 3,536.3 3.0
NHC NEW HOPE CORPORATION LIMITED $2.47 1,996.7 1.7

 

Dan Denning
The Daily Reckoning Australia

Dan Denning
Dan Denning examines the geopolitical and economic events that can affect your investments domestically. He raises the questions you need to answer, in order to survive financially in these turbulent times.
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