Oil service share at the top of the Oslo Stock Exchange this year – E24

The seismic company TGS tops the list of stock exchange winners on the Oslo Stock Exchange, when we are a little over halfway through the stock market year 2022. Since the new year, the share has risen more than 70 percent.

– The share has lived up to expectations of a stronger seismic market and TGS has been a historically good company as investors when thinking is a “safe bet” to play on, says Jørgen Lande, analyst at Danske Bank, to E24.

Carnegie analyst Erik Aspen Fosså highlights high energy prices as an important contributor. He himself has a buy recommendation and a price target of NOK 220, which is significantly higher than the current price of NOK 144.

– The positive price development for TGS this year is largely driven by current energy crises and subsequent high oil prices, and expectations that this will lead to increased investments in the oil and gas sector, which will be positive for the demand for TGS ‘seismic data, says Fosså to E24.

– We believe that oil demand will continue to increase for a long time to come, and that there is therefore a need to increase oil and gas investments. In addition, the return on new projects is so solid that we believe the oil companies are no longer able to stay away from investing for much longer.

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Sharp decline

It has not been an equally good return for all companies. After a phenomenal rise in 2021, it has looked darker in the global stock markets in 2022.

In Norway, the main index on the Oslo Stock Exchange is down four percent this year. In the US, the broad S&P 500 index is down more than 20 percent, while the technology-heavy Nasdaq is down 28 percent.

The decline comes during a period of market turmoil, high inflation and fears of economic decline. Technology stocks in the US in particular have been hit hard as a result.

The same pattern characterizes the Oslo Stock Exchange, where the stocks that have performed the worst this year are largely technology stocks.

The learning platform Kahoot had an adventurous development during the corona pandemic. This year, however, the share has fallen 58 percent, and even more in the last 12 months. The video conferencing company Pexip is also among the hardest hit stocks, and is down more than 63 percent this year.

The biotechnology company Nordic Nanovector, which is down 83.5 per cent so far this year, has fared the worst. The company tops the list of losers after the share on Wednesday alone fell 55 percent after weak cancer study results.

Nordic Semiconductor rose like a rocket in 2021, but so far in 2022 is down 48 percent. Schibsted, Autostore, Tomra and Aker Horizons have also fallen significantly on the Oslo Stock Exchange this year.

Other winners

However, some shares on the Oslo Stock Exchange have performed better than others, and some have given investors a nice return since the New Year.

Among other things, John Fredriksen can rejoice over the price increase in Golden Ocean and Frontline, which has risen 49 and 40 percent, respectively.

The oil price has risen 40 percent in 2022, which has sent oil shares on the Oslo Stock Exchange up. Equinor tops the oil shares with a return of 40 percent for those who bought in at New Year.

The oil companies DNO and Aker BP are following suit with price increases of 31 and 20 per cent respectively so far this year.

Investors in the shipping companies BW LPG, Flex LNG and Stolt-Nielsen also have reason to be satisfied. All three shares have risen significantly in 2022.

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