Australian Energy Sector Shows Potential For Earnings Growth
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.
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
P.S. to get The Daily Reckoning direct to your inbox sign up to our free e-mail newsletter or if you prefer to use RSS, subscribe to the Daily Reckoning RSS feed.
Related Articles:
- None Found
About the Author
Dan Denning is the author of 2005's best-selling The Bull Hunter (John Wiley & Sons). Dan draws on his network of global contacts from his base in Melbourne. He’s the managing editor of resource newsletter Diggers and Drillers and the editor of The Daily Reckoning Australia.