Is Santos Limited (ASX:STO) Trading At A 32% Discount?
Oct 20
Australian (ASX) Oil and Gas Industry Analysis
UpdatedOct 31, 2023
DataAggregated Company Financials
Companies119
- 7D-1.6%
- 3M-5.3%
- 1Y-4.7%
- YTD-2.7%
Over the last 7 days, the Oil and Gas industry has dropped 2.1%, driven by Woodside Energy Group declining 2.5%. Meanwhile, Invictus Energy actually outperformed within the industry, gaining 68% in the last week. Over the last year, the industry has been flat overall. Looking forward, earnings are forecast to decline by 6.1% per year.
Industry Valuation and Performance
Has the Australian Oil and Gas Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | AU$138.9b | AU$130.1b | AU$19.7b | 5.6x | 7x | 1.1x |
| Thu, 28 Sep 2023 | AU$143.4b | AU$130.1b | AU$19.8b | 4.8x | 7.2x | 1.1x |
| Sat, 26 Aug 2023 | AU$143.5b | AU$130.3b | AU$20.4b | 5x | 7x | 1.1x |
| Mon, 24 Jul 2023 | AU$140.6b | AU$127.0b | AU$22.9b | 6.2x | 6.1x | 1.1x |
| Wed, 21 Jun 2023 | AU$139.2b | AU$126.7b | AU$22.8b | 6.7x | 6.1x | 1.1x |
| Fri, 19 May 2023 | AU$146.8b | AU$129.5b | AU$24.2b | 6.6x | 6.1x | 1.1x |
| Sun, 16 Apr 2023 | AU$149.6b | AU$129.2b | AU$24.0b | 6.9x | 6.2x | 1.2x |
| Tue, 14 Mar 2023 | AU$150.8b | AU$133.8b | AU$23.6b | 6.6x | 6.4x | 1.1x |
| Thu, 09 Feb 2023 | AU$157.6b | AU$98.5b | AU$13.8b | 7.3x | 11.4x | 1.6x |
| Sat, 07 Jan 2023 | AU$152.1b | AU$99.0b | AU$13.9b | 6.9x | 10.9x | 1.5x |
| Mon, 05 Dec 2022 | AU$155.5b | AU$99.3b | AU$14.0b | 6.8x | 11.1x | 1.6x |
| Wed, 02 Nov 2022 | AU$157.7b | AU$100.9b | AU$14.5b | 7.1x | 10.9x | 1.6x |
| Fri, 30 Sep 2022 | AU$144.4b | AU$100.5b | AU$14.4b | 6.6x | 10x | 1.4x |
| Sun, 28 Aug 2022 | AU$156.2b | AU$91.4b | AU$10.9b | 8.9x | 14.4x | 1.7x |
| Tue, 26 Jul 2022 | AU$136.7b | AU$69.4b | AU$4.6b | 11.1x | 29.9x | 2x |
| Thu, 23 Jun 2022 | AU$137.7b | AU$69.3b | AU$4.6b | 12x | 30.2x | 2x |
| Sat, 21 May 2022 | AU$113.2b | AU$69.2b | AU$4.5b | 10.5x | 25.1x | 1.6x |
| Mon, 18 Apr 2022 | AU$119.6b | AU$68.5b | AU$4.4b | 12.6x | 27.1x | 1.7x |
| Wed, 16 Mar 2022 | AU$113.2b | AU$69.1b | AU$5.1b | 12.9x | 22.4x | 1.6x |
| Fri, 11 Feb 2022 | AU$108.5b | AU$53.1b | -AU$467,912,632.00 | 26x | -232x | 2x |
| Sun, 09 Jan 2022 | AU$101.7b | AU$53.1b | -AU$458,542,682.00 | 31.5x | -221.8x | 1.9x |
| Tue, 07 Dec 2021 | AU$88.1b | AU$53.4b | -AU$439,280,336.00 | 26.5x | -200.5x | 1.7x |
| Thu, 04 Nov 2021 | AU$95.0b | AU$52.6b | -AU$491,035,756.00 | 29.7x | -193.4x | 1.8x |
| Sat, 02 Oct 2021 | AU$92.3b | AU$52.9b | -AU$444,917,065.00 | 28.3x | -207.5x | 1.7x |
| Mon, 30 Aug 2021 | AU$77.8b | AU$51.8b | -AU$287,976,342.45 | 20.5x | -270.1x | 1.5x |
| Tue, 06 Jul 2021 | AU$80.5b | AU$51.8b | -AU$288,881,218.45 | 25.6x | -278.7x | 1.6x |
| Fri, 09 Apr 2021 | AU$81.1b | AU$49.9b | -AU$3,919,818,375.29 | 15.1x | -20.7x | 1.6x |
| Thu, 31 Dec 2020 | AU$77.4b | AU$48.2b | -AU$7,531,587,593.28 | 21x | -10.3x | 1.6x |
Price to Earnings Ratio
-9.2x
Current Industry PE
- Investors are pessimistic on the Australian Oil and Gas industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 7.2x which is higher than its 3-year average PE of -43.7x.
- The 3-year average PS ratio of 1.5x is higher than the industry's current PS ratio of 1.1x.
Past Earnings Growth
- Total earnings for the Oil and Gas industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 34% per year.
- This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.
Industry Trends
Which industries have driven the changes within the Australian Energy industry?
| AU Market | -0.99% | |
| Energy | -1.54% | |
| Oil and Gas | -1.55% | |
| Oil and Gas Refining and Marketing | 1.14% | |
| Integrated Oil and Gas | 0% | |
| Coal and Fuels | -1.05% | |
| Oil and Gas Exploration and Production | -1.98% | |
| Oil and Gas Storage and Transportation | -10.00% | |
Industry PE
- Investors are most optimistic about the Oil and Gas Refining and Marketing industry which is trading above its 3-year average PE ratio of 80.6x.
- Analysts are expecting annual earnings growth of 46.6%, which is higher than its past year's earnings decline of 85.4% per year.
Forecasted Growth
- Analysts are most optimistic on the Oil and Gas Refining and Marketing industry, expecting annual earnings growth of 47% over the next 5 years.
- This is better than its past earnings decline of 85% per year.
- In contrast, the Coal and Fuels industry is expected to see its earnings decline by 12% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| IVZ Invictus Energy | AU$0.26 | 67.7% +AU$130.2m | 85.7% | PB3.4x | |
| VEA Viva Energy Group | AU$2.79 | 2.2% +AU$92.4m | -1.4% | PS0.2x | |
| PDN Paladin Energy | AU$0.94 | 1.6% +AU$46.8m | 11.2% | PB4.4x | |
| ALD Ampol | AU$31.56 | 0.5% +AU$40.5m | 15.9% | PE57.7x | |
| BPT Beach Energy | AU$1.54 | 0.7% +AU$22.8m | -3.5% | PE8.7x |
