Energy stock that delivered double-digit returns in last three months- TER, WHC, NHC

Highlights:

1. Rising energy prices and the energy crisis in many parts of the world have increased fuel prices.

2. The increase in fuel prices has increased the demand for alternative energy sources. Thus, driving the prices of their stocks.

3. Experts believe that this sector will improve in FY2023.

One of the most trending sectors in recent months is the energy sector. Rising energy prices are the major reason for the growth in the stock price of most ASX-listed players from this space. Besides increasing energy prices, export volumes have also impacted energy prices.

Also, the energy crisis in most European countries has increased the demand for alternative energy sources like coal, renewable energy sources, etc. Thus, driving the prices of stocks of these alternative energy sources.

In the last three months, many ASX-listed players delivered a strong return. In this article, we will look into three such energy stocks with double-digit growth in the last three months and see their recent developments:

TerraCom Limited (ASX: TER)

Australian-based mining resources company TerraCom Limited has a global presence with a large portfolio of operating assets in Australia and South Africa within the coal sectors.

Recently, the Company released its Q1 FY2023 results for the period ended 30 September 2022. In the announcement, TER highlighted that it continues to deliver strong results, with the Q1 FY2023 reaching a total operating EBITDA result of AU$180 million from the Australian and South African operations.

• Total coal sales during the quarter were 2.34 Mt, representing an annualised run rate of 9.36Mt yearly.
• The South African operations was able to achieve an operating EBITDA of AU$58.8 million resulting in an operating cash margin of AU$31 per sold tonne.

The Company now expects to complete the planned rehabilitation program by December 2022 quarter end, with the production dozer fleet planned to support the rehabilitation fleet during November 2022. Stage 2 of the planned rehabilitation program is expected to be completed within Q3 FY2023.

Whitehaven Coal Limited (ASX: WHC)

Coal mining and exploration company Whitehaven Coal delivered a return of over 60% in the last three months. Whitehaven Coal Limited is a leading producer of premium-quality coal. It is a dominant player in Australia’s only emerging high-quality coal basin.

In the September 2022 quarter, the Company achieved a record average coal price of AU$581/t for the quarter compared to AU$514/t in the June quarter. During the quarter, the Company noted strong production from Narrabri. However, weather affected open-cut operations and volumes. The total equity sales of produced coal dropped 32% on June 2022 quarter.

Whitehaven generated AU$1.55 billion of cash in the September quarter. By the end of the quarter, the Company’s net cash position stood at AU$1.93 billion.

Currently, the Company is in a good position to support energy security for its customers and deliver a strong return to its shareholders.        

New Hope Corporation Limited (ASX: NHC)

An Australian controlled diversified energy company, New Hope Corporation has interests and operations spanning coal mining, exploration, port operation, conventional oil, agriculture, innovative technologies, and investment.

The principal activities of NHC includes the development and operation of coal mines, port handling and logistics, agriculture, and oil & gas development as well as production.

• NPAT increased from AU$79.4 million in FY2021 to AU$983.0 million in FY2022.
• Underlying EBITDA grew from AU$367.2 million in FY2021 to AU$1,577.4 million in FY2022.
• Net cash from operating activities increased significantly by 285% to AU$1,138.6 million.
• It announced a final dividend of AU 31.0 cents per share and a special dividend of AU 25.0 cents per share, fully franked and payable on 8 November 2022.

Outlook of the Energy sector:

The energy crisis trend is expected to continue into FY2023 resulting in forecast prices remaining elevated. According to the U.S. Energy Information Administration report, the global consumption of liquid fuels will surge by an average of 2.1 million barrels per day for entire 2022 and by an average of 1.5 million barrels per day in 2023.

Related Read: How does OPEC+’s decision to cut oil production impact the global economy?

Stock Performance (19 October 2022):

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