市场见解

LNG hit record highs in 2021 so why did the Santos (ASX:STO) share price struggle?

We consider what’s behind the underperformance of the ASX energy sector.
The post LNG hit record highs in 2021 so why did the Santos (ASX:STO) share price struggle? appeared first on The Motley Fool Australia. –

A large valuation gap may be opening as Australia’s liquefied natural gas (LNG) exports hit a record high but the 桑托斯集团 (ASX: STO) share price and ASX energy sector are underperforming.

Our country’s natural gas exports jumped to an all-time high of $48 billion in 2021, as reported in The Australian.

Record gas price fails to fire up ASX energy shares

That’s around a 25% surge over the previous year, based on data from EnergyQuest quoted in the article.

LNG volumes increased a more modest 3.7% to 80.9 million tonnes. This shows how strong LNG prices were in 2021 and experts are also painting a positive outlook this year too.

But someone must have forgotten to tell investors as ASX gas producers were lagging the S&P/ASX 200 Index (ASX: XJO) for the whole of last year.

Santos share price leading the laggards

The Santos share price is barely above breakeven in calendar year 2021 when the ASX 200 Index gained around 15%.

What’s more, Santos is one of the better performers in the sector. The 能源 - 伍塞德石油 (ASX: WPL) share price dipped 4% while the Beach Energy Ltd (ASX: BPT) share price tumbled 30% in the 12 months to end of last month.

The drag from these heavyweights caused the ASX 200 Energy sector to come in second last for the year with a dip of 1%. Only the tech sector performed worse as these ex-market darlings lost their gloss as bond yields rose.

Why the Santos share price and ASX energy sector are struggling

But investors’ disdain for ASX energy shares is driven by other factors – mainly the global decarbonisation drive and environmental concerns.

The cost of debt to fund fossil projects has increased as banks have also started to shun the sector. And investors here may be shunning fossil fuel-related shares for those leveraged to sustainable energy.

This is evident in the contrasting performance of ASX miners producing minerals for batteries. The Allkem Ltd (ASX: AKE) share price and Pilbara Minerals Ltd (ASX: PLS) are but two examples.

Valuation gap an opportunity?

The interesting point is that Aussies may be quicker to embrace the decarbonisation theme than their global counterparts. US energy shares aren’t penalised in quite the same way as their ASX counterparts, according to The Australian.

This has led some experts to encourage value-focused investors to buy into ASX energy shares like Santos.

More M&A could be in the pipeline

While there’s no stopping the world from moving to a net-zero economy, the valuation gap between oil and gas prices and the valuation of our energy shares may be becoming too great to ignore for some.

If this gap doesn’t close in 2022, we could very well see more mergers and acquisitions.

The post LNG hit record highs in 2021 so why did the Santos (ASX:STO) share price struggle? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Santos right now?

Before you consider Santos, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Santos wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 (ASX:XJO) midday update: Afterpay hits 52-week low, energy shares rise

The 5 best ASX lithium stocks of 2021

How the Pilbara Minerals (ASX:PLS) share price surged 268% higher in 2021

2 ASX 200 mining shares to buy in January

5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Brendon Lau owns Orocobre Limited and Santos Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!