Continued tensions in the Middle East which may even escalate next year bodes well for oil prices. This in return could provide an uplift to oil and gas stocks listed in Singapore.
Small-cap stocks usually does not pay dividend and they do not have a track record of good profits. However, there are small cap oil and stocks which has good profits.
In this article, I list out 3 explosive small cap oil and gas stocks for investors to consider.
Rex International Holding Ltd
Rex International Holding Ltd is a multinational oil exploration and production company. The Group has interests in exploration and production licences in Oman and Norway, and holds operatorship for the asset in Oman.
For half year ended 30 June 2024, Rex reported revenue increase by 48.4% to US$ 158.67 million. The increase in revenue is due to increased production from Brage and Yme fields in Norway.
However, Rex half year ended 30 June 2024 turn into a loss of US$10.45 million compared to a profit of US$3.69 million the previous year. The company’s balance sheet remains strong and is in net cash position. No dividend was declared.
Rex share price is down 37% year to date due to the loss it has incurred during the first half of 2024. However, if Middle East tensions were to escalate, Rex could be one of the 3 explosive small cap oil and gas stocks to consider. You can view the company website here.
Baker Technology Ltd
Baker Tech is an international engineering design, consultancy and manufacturing company based in Singapore which serves the energy industry with special capabilities in the offshore environment.
Its business also included the design, engineering and construction of mobile offshore units including liftboats, mobile offshore production units and self-elevating units for the offshore marine industry.
For the half year ended 30 June 2024, Baker Tech reported revenue up 33% to S$52.3 million due to higher charter revenue and spare sales. Net profit is up significantly due to higher contributions from chartering activities in line with higher revenue and absence of allowance for expected credit loss.
The company’s balance sheet remains strong with minimal debt. The stock is up 16.35% year to date due to its good results. With Baker tech strong fundamentals, it could be one of the 3 explosive small cap oil and gas stocks to consider. You can view the company website here.
Mermaid Maritime
Mermaid is a leading international subsea and offshore services company which mainly providing Inspection, Repair and Maintenance service, Transportation and Installation and cable laying service.
In addition, the company provides full turnkey services to oil and gas majors operating offshore through their diversified portfolio of subsea vessels, specialized diving equipment and remotely operated vehicles.
For 3Q FY2024, Mermaid reported revenue increase by 76.3% to US$150.1 millon. This is driven by increase in new projects in subsea transportation and installation (“T&I”) services and decommissioning services.
However, net profit dropped by more than 80% to US$1.1 million compared to US$6.9 million. This is due to low profitability in new project in T&I and decommissioning services and, inspection, repair and maintenance (“IRM”) services.
Despite the big drop in profit, the stock managed to have a return of 26% year to date and with on-going tensions in the Middle East, Mermaid could be one of the 3 explosive small cap oil and gas stocks to consider. You can view the company website here.
I have listed 3 explosive small cap oil and gas stocks to consider in this article should oil prices shoot up. With tensions in the Middle East and elsewhere, it is going to difficult for oil price to drop much further.
Disclaimer: Please note that the stocks mentioned in this article are not a financial recommendation to buy and investors need to do their own research and due diligence before investing in any of these stocks.
