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- 1 Energy stocks are highly valuable as they have great prospects of profits in the future.
- 2 These are some companies that are working towards making energy more sustainable.
- 3 Due to the growing significance of energy, the companies are gaining traction. As a result, their share is getting more precious.
Energy companies have a big role to play today. These are firms that deal with oil, gas, hydropower, thermal power, and many other sources. By investing in them, investors can make plenty of profits hand over fist. They don’t just ensure long-term gains but also deliver quick returns. Australia is a hub of quite a few energy companies. These organizations have performed exceptionally in the markets.
They have done a great job in operations and that reflects in their shares. Analysts have handpicked some stocks that are likely to yield profits this year.
Australian Energy Stocks that Investors Should Be Keen About
These stock options are likely to eke out massive gains for investors. They become a major source of profits for their holders.
1. Santos Limited ($STO)
Santos started operations in Cooper Basin 1960s. It’s one of the biggest oil and gas exploration and production companies in Australia today. It has expanded operations in the USA, East Timor, and Papua New Guinea. Besides being a leading supplier of liquified natural gas (LNG) in the APAC region, it’s also foraying into other relevant spheres. With a market cap of $24.12b, it’s a precious pick.
2. Whitehaven Coal Limited ($WHC)
Whitehaven deals in metallurgical and thermal coal mines. It operates in New South Wales (NSW) and Queensland (QLD) right now. Recently, the company registered an uptick in its coal supply due to Russian sanctions. However, the firm recently started facing some operational challenges due to unpredictable weather and labor shortage. Still, it commands a $6.07b market cap and holds lots of potential.
3. Origin Energy Limited ($ORG)
Origin Energy Limited produces and supplies natural gas and electricity. With solar, wind, and hydro projects, the company has quite a few feathers in its cap. It has also attempted a takeover of Brookfield which is yet to be finalized. Its stake in Octopus Energy has reaped some profits recently. With a market cap of $14.31b, it offers great prospects for the future.
4. Paladin Energy Ltd ($PDN)
Paladin is yet to start its operations. The company plans to restart the Langer Heinrich mine in Namibia. The reserve is said to be super-rich in Uranium. Its estimated capacity is 76 million pounds and it has a record of 10 years of successful mining. Experts are expecting this project to fire up the dormant nuclear industry. With a market cap of $1.95b and lots of growth prospects, it’s a prized pick for investors.
5. Ampol Limited ($ALD)
Ampol takes care of the refining, distribution, supply, purchasing, and selling of petroleum products. It’s the largest energy distributor and retailer in Australia already. With 1,900 branded petrol stations, it boasts an extensive network. Its market cap is $7.39b and it’s a promising investment.
Conclusion
With these energy stocks, investors can certainly strengthen their portfolios. These shares have a greater scope of exponential growth. To a large extent, they also offer protection from events like recession. Because they are absolutely necessary for many industries and our lives. Thus, buying these instruments is a prudent decision for every trader. Their presence makes the overall holdings much more promising in every way.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
