Video

Playlist: WPL:xasx

Show less
2:13
Morningstar: The Aussie firms in the Asian pipeline
Francisca Thomsen
28 July 2014 at 9:27 GMT
Video / 28 July 2014 at 9:27 GMT

Morningstar: The Aussie firms in the Asian pipeline

Francisca Thomsen

Increased demand for gas in Asia could create investment opportunities with two Australian energy companies, according to Morningstar research, especially as US energy prices are expected to rise.

Mathew Hodge, Senior Equity Analyst at Morningstar highlights two Australian energy low-cost companies with high margins: Woodside Petroleum and Santos.
Mathew Hodge and Mark Taylor have written a report on energy stocks and the effects of strong demand for gas from Asia. They conclude that Woodside and Santos are best placed to meet that demand. Mathew Hodge and Mark Taylor predict gas prices in the U.S will rise, making it more difficult to compete with other global producers. 

Mathew Hodge believes that from a shareholder’s point of view, Woodside offers a good dividend. Santos has two large projects under construction: a gas development project in Papua New Guinea, which has started producing and Gladstone, a liquefied natural gas project due to start producing next year. Mathew Hodge believes that because capital costs are dropping off, Santos shareholders should expect a rise of both dividends and earnings.

Disclaimer

The Saxo Bank Group entities each provide execution-only service and access to Tradingfloor.com permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Tradingfloor.com and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Tradingfloor.com is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Tradingfloor.com or as a result of the use of the Tradingfloor.com. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through Tradingfloor.com your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail