
Profit pinch: Singapore oil and gas stocks down 50% YoY in 1Q15
They are feeling increased selling pressure.
The low prices are finally resulting in lower earnings for oil and gas companies.
According to a report by KGI, Vard Holdings (S$0.565; ‐4.2%) and Rotary Engineering (S$0.52; ‐5.5%) led oil and gas stocks lower as they reported weak first quarter earnings (50% YoY earnings decline).
Rotary may also face increased selling pressure on removal from the MSCI Singapore Index.
KGI adds that other stocks being removed from the MSCI Singapore index were mainly oil and gas related including Charisma Energy, Civmec, Dyna Mac. Stocks added include China Merchants, Keppel DC REIT, SIIC Environment and SPH REIT.