PFC Energy has just published its succinct (8 pages) but informative rankings of the worlds’ largest listed energy firms. The combined value of the PFC Energy Top 50 companies has climbed by 45% since 2006 to a $5 trillion market capitalization—the largest jump in the list’s history.
The top performers in the Energy 50 are traded NOCs with a valuation of some 20 times trailing 12-month earnings, compared with a 12 times multiple for IOCs. Petrochina climbed from third to first place on the PFC Energy 50 in the run-up to its Shanghai IPO. Other NOC climbers include Sinopec, CNOOC, PTT and Petrobras. However, the PFC list excludes the really big fish—the non-traded NOCs. The lion’s share of the oil and gas sector’s value lies with Saudi Aramco, National Iranian Oil Company, Kuwait Petroleum Company, Abu Dhabi National Oil Company and Petronas.
The Energy 50 report notes that, in a year when WTI oil prices rose 57%, the combined capitalization of the majors increased only 15%, reflecting the increasingly difficult struggle to deliver production growth. The majors substantially underperformed the smaller IOCs such as Apache, BG, Devon, Anadarko and Woodside.The market also favored the oil service sector where the Top 15 are priced at an average 21 times trailing 12-month earnings. Services are the only sector where US-based companies still dominate, although the year’s strongest service company share price growth came from a Chinese service company and an Indian drilling company. The report is a free download from www.pfcenergy50.com.
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