The Top 50 of S&P Global Platts Top 250 Energy Firms 2019

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The S&P Global Platts Top 250 for this year was published last month. These firms are ranked based on asset worth, revenues, profits and return on invested capital. This ranking considers only publicly traded energy firms.

The following table shows the Top 50 of S&P Global Platts Top 250 Energy Firms for 2019:

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Source: S&P Platts

The complete list of firms can be found here.

A few observations:

  • Out of the top 10, Russia is represented by 3 firms
  • China’s Sinopec(SNP) came in at number 10.
  • With 2nd rank, US oil giant Exxon Mobil (XOM) was only below Shell.
  • Equinor(EQNR) of Norway is worth watching for growth next year.

Disclosure: No Positions

Germany’s Major Trading Partners 2018

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The following chart shows the major trading partners of Germany based on 2018 data. The top export market for Germany is the U.S. followed by France and China. In terms of imports, the major country for imports into Germany is China. The US ranks 4th as the major import source country.

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Source: De Statis

China and the US are the only two countries outside of Europe that are major trade partners of Germany.

Germany has a trade deficit with the US as it exports more to the country than it imports.

 

U.S. vs. European Stock Returns

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The U.S. equity market as represented by the S&P 500 has performed very well this year with a return of 17.2% so far based on price return only. When dividends are included the returns will be a bit slightly higher. The returns on the index over the 5 and 10 year period is also very good. Ever since the Global Financial Crisis(GFC) of 2008-09 American equities have enjoyed a strong bull market.

On the other hand, European stocks have languished year over year. Since the GFC, they have under-performed their US peers by a wide margin to say the least.

Let’s take a quick look at the returns of these markets using an ETF as a proxy. The SPDR S&P 500 ETF (SPY) mimics the S&P 500 while the SPDR STOXX Europe 50 ETF (FEU) mirrors the Stoxx 50 index which is the benchmark for European markets including the UK.

The following chart shows the returns of the two ETFs in the past 5 years:

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In the past five years, FEU is in the negative territory. But SPY has had an excellent run with returns of over 55%.

The following chart shows the returns of the two ETFs since April 1, 2009 (approx. trough of GFC):

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Source: Yahoo Finance

While the SPY has shot up by over 235%, its European equivalent has had a tiny gain of only 28%. The gap in returns is indeed astonishing.

Why European stocks have poorly performed relative to their American peers?

Some of the reasons for the awful performance of European stocks are: lackluster European economic growth, dithering politicians and regulators more interested in drama than substance, lack of swift policy actions, lack of focus on growth by firms, too many political and economic crises wasting time and resources, meager innovation in many industries, etc.

It remains to be see if European stocks stage a comeback in the next 5 years or so bringing joy to equity investors.

Related ETFs:

  • The SPDR S&P 500 ETF (SPY)
  • The SPDR STOXX Europe 50 ETF (FEU)

Disclosure: No Positions