By Angela Macdonald-Smith
Bumper Asian gas prices are expected to help double September revenues for some of Australia’s LNG exporters with the December quarter also shaping up even more strongly compared with the depths they plunged to last year at the height of the COVID-19 pandemic.
Record prices for Asian LNG and a return to $US80-plus for Brent crude have lifted market sentiment around the previously out-of-favour energy sector in the past month, with share prices shooting up as much as 23 per cent for Woodside and 35 per cent for Beach Energy.
Wilson Asset Management’s Matt Haupt is one investor that remains confident in the sector’s outlook and pointed to the improving sentiment in the market despite increased ESG concerns.
“Price is normally the best sentiment indicator so as energy prices increase we’re seeing more money coming back into the sector as an investment,” he said.
“Will [the stocks] trade as high as previous levels? Probably not, but there’s still enough money to be made on current valuations if prices hold where they are.”
Read more in the Australian Financial Review.