Shares that have won and lost from oil price falls

30th January 2015

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The falls in oil prices that started last summer have seen the price of a barrel = halve: which companies are the biggest losers from the tumble?

 

Unsurprising the European energy sector lost 10.77% since 1 June 2014 and over the same time the price of a barrel of brent crude oil has dropped from $100 to $50.

 

However, there has been a large divergence in the individual share price performance, analysis by Euromoney Indices shows.

 

The hardest hit shares have been:

 

Middle East and African oil producer Afren is down 96.45%.

Norwegian offshore deep water drilling company Seadrill is down 67.12%

Oil and gas exploration company Tullow Oil is down 52.39%

 

There are energy stocks that have delivered positive share price performance over the same period; Finland’s Neste Oil is up 59.79% and Portugal’s EDP Renovaveis is up 19.68%.

 

Euromoney also pointed to the transport sector, which has seen an uplift of 8.07% since the start of June. Top performers are:

 

International Consolidated Airlines up 54.57%

Budget airline Ryanair up 47.03%

Tank storage provider Vopak is up 34.98%

Flughafen Zurich is up 32.64%

 

Sui Chung, managing director of Euromoney Indices, said: ‘The European energy sector has taken a hammering since oil prices started their sharp descent. The share price falls have been largely across the board, with Neste the only oil company to significantly buck the trend.’

 

Chung warned investors against assuming that sectors for which oil is large cost will automatically benefit.

 

‘The transport sector for instance has delivered a strong performance overall but plenty of companies in the sector have seen share prices go down despite the reduced energy cost factor, with some falling by quite a way,’ he said.

 

‘Investors still need to pick the winners in this sector with aviation stocks seeing a wide divergence in performance since the oil price reduction.’

 

 

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