Petra Energy – price mismatch due to higher crude oil prices

Petra Energy is a Bursa oil & gas company providing a range of integrated brownfield services and products for the upstream oil and gas industry in Malaysia. As such you should expect its performance to be link to crude oil prices.

From 2013 to 2022 there is a 72 % correlation between Petra Energy revenue for the year with the crude oil price of the preceding year. This meant that crude oil prices explained about half of the changes in revenue.

Crude oil prices this year is much higher than those in 2019. If you look at Petra Energy ROE trend for the past decade, you can see that it peaked in 2019. Does this mean that the ROE in 2024 would be better than that in 2019? If so, then the share price of the company has yet to reflect this.