Energy companies went through a rough patch during a global downturn, but in recent years, those that pulled through have proven their mettle in their own ways. Baker Technology has been named the overall sector winner and the best returns to shareholders, RH Petrogas led in weighted return on equity (ROE), while China Aviation Oil topped the growth in profit after tax category.

Baker Technology, through its subsidiaries, is a leading manufacturer and provider of specialised marine offshore equipment and services, focused on the oil and gas and renewable energy sectors. In its most recent FY2024 annual report, the company described a macroeconomic environment marked by significant geopolitical turbulence, with inflation and high interest rates continuing to affect many regions. Other notable factors affecting the industry include the debates over how quickly economies could decarbonise without jeopardising energy security or economic growth. Having said that, the industry in FY2024 saw improved day rates and utilisation for offshore support vessels. However, Baker Technology warns that market sentiment remained tentative during the year, with a high reliance on seasonality. 

Amid this backdrop, Baker Technology generated marginally higher revenue of $92 million in FY2024, primarily due to higher spare sales, though this was partially offset by lower fabrication revenue. In contrast, chartering revenue remained flat for the year. Yet, thanks to better utilisation of its vessels, favourable forex and the absence of impairments in FY2023, the company was able to report much higher earnings of $19.1 million in FY2024, up from just $3.6 million in FY2023.

RH Petrogas is an independent upstream oil and gas company headquartered here in Singapore, with its two producing assets in Indonesia. Revenue for the year was down slightly to US$92.5 million ($120 million) from US$94.1 million recorded in FY2023, due mainly to a marginal decrease in the average realised oil price from US$80 per barrel in FY2023 to US$79 per barrel in FY2024, as well as lower volume of crude oil lifted. However, the company was able to lower its cost of production to US$31.40 per barrel in FY2024 from US$37.30 per barrel in FY2023. As a result, it reported higher earnings of US$18.3 million for FY2024, compared with US$3.2 million in FY2023.

China Aviation Oil (Singapore) Corporation, which rounds out the list of winners in this industry sector, is the largest physical jet fuel buyer in the Asia-Pacific region and a key supplier of imported jet fuel to China’s civil aviation industry. Listed on the Singapore Exchange since 2001, CAO operates in various key airports, including Beijing Capital International Airport, Shenzhen Baoan International Airport, Shanghai Pudong and Hongqiao International Airports, as well as Guangzhou Baiyun International Airport. As part of its ongoing efforts to advance its sustainability objectives, CAO has also expanded its product offerings to include sustainable aviation fuel, carbon credits, and more.

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As noted by chairman Shi Yanliang in the company’s FY2024 annual report, the year was marked by ongoing operational challenges that caused volatility in global oil prices. Against this backdrop, the company recorded earnings of US$78.09 million for FY2024, up 33.8% y-o-y. “The global aviation industry’s strong rebound has continued to spur China’s growing demand for fossil-based jet fuel as well as increased its renewable energy consumption in sustainable aviation fuel,” he adds.