As oil prices crossed US$100 per barrel recently, drivers at the petrol kiosk were hit first.
But downstream impact – inflation, business costs, and global trades – were not spared either.
Still, opportunities exist.
The question is: Which types of oil and gas stocks benefit the most?
We check out a few names to find out.
RH Petrogas Limited (SGX: T13) — The Upstream Producer
RH could benefit from rising oil and gas prices, and here’s why.
For starters, being a pure-play upstream producer, RH avoids costly refining processes.
Moreover, the upstream hydrocarbons player derives most of its revenue from Indonesia, away from flashpoints in the Middle East.
For FY2025, RH’s revenue decreased 16.2% to US$77.6 million, due to a roughly 14% reduction in realised oil prices to US$68 per barrel, illustrating its sensitivity to oil prices.
This top-line decline translated to weaker earnings. Excluding one-off exploration write-offs, RH’s EBITDAX declined comparably by 24% to US$24.9 million.
However, if oil prices stay above US$100 per barrel in 2026, RH is poised to benefit significantly.
This optimism is evident in the company’s planned drilling of the Northwest Klagagi-1 (“NWK-1”) exploration well in the second quarter of 2026.
Further confidence comes from its proposal of a final annual dividend of S$0.003 per share for FY2025, a reversal from FY2024, when no dividends were declared.
Seatrium Limited (SGX: 5E2) — The Offshore Services Provider
Seatrium is a leading offshore services provider.
Boasting a 60-year track record, the company is renowned for its consistent safety standards and geopolitical diversity.
The company’s flagship products include gigantic Floating Production, Storage, and Offloading (FPSO) units that are built in yards across Brazil, China, Indonesia, the Philippines, and Singapore.
As opposed to higher-risk bespoke projects, Seatrium has a “design once, build many” approach that reduces execution risk and enhances delivery efficiency.
This strategy appears to be working with the company’s FY2025 revenue climbing 24% to S$11.5 billion, driving net profit up 106% to S$324 million, thanks to disciplined project execution, improved operating leverage, and cost efficiencies.
The engineering specialist sits on a robust S$17.8 billion net order book that stretches through to 2033. 40% of the net order book comprises renewables and cleaner/green solutions, providing Seatrium with resilience across energy cycles.
With such revenue visibility, Seatrium proposed a doubling of its dividend for FY2025 to S$0.03 per share.
Keppel Infrastructure Trust (SGX: A7RU) — The Infrastructure Defensive Play
Keppel Infrastructure Trust, or KIT, boasts a diversified portfolio of high-barrier-to-entry assets mostly within the essential sectors of Energy Transition, Environmental Services, and Distribution & Storage (D&S).
Demand for KIT’s services is inelastic. Essential services such as piped town gas, water supply, and electricity that KIT makes possible through assets such as City Energy, the SingSpring Desalination Plant, and the Keppel Merlimau Cogen Plant, respectively, remain indispensable even in a recession.
Furthermore, by delivering town gas at a fixed margin per unit, where rising fuel and electricity prices can be passed through to consumers, City Energy is effectively shielded from the inflation that is hitting everyone else.
Although KIT’s FY2025 revenue rose by only a modest 3% to S$2.3 billion, its distributable income (DI) climbed 24% to S$249.5 million, supported by a robust performance in its Energy Transition and D&S segments.
Such favourable DI facilitated a 1% rise in distribution per unit (DPU) to S$0.0394, continuing an ascending trend since FY2021 (if special distributions were excluded).
Sembcorp Industries (SGX: U96) — The Integrated Energy Player
Although renewables make up the majority of Sembcorp’s 28.5 GW total capacity, its conventional “Gas and Related Services” segment is still the profit driver, delivering S$701 million net profit for the full year of 2025 (FY2025) compared to S$192 million from Renewables.
Overall, total revenue for FY2025 dipped 10% to S$5.8 billion due to lower wholesale electricity and gas prices, and reduced gas offtake in Singapore.
Still, the energy powerhouse delivered on cash generation, with free cash flow increasing 15.6% to S$2.07 billion, thanks to divestment gains related to SembEnviro.
This improved liquidity allowed management to reward shareholders with a proposed total dividend of S$0.25 per share for FY2025, a 9% increase.
Sembcorp’s significant capacity in the renewable segment means it could benefit if rising fuel prices drive an energy transition towards renewables.
However, if electricity prices do not rise as fast as fuel costs, an unfavourable spark spread compression could materially hurt its margin. That’s something for investors to be cautious about.
Get Smart: Follow the Energy Cycle, Not Just the Price
Oil above US$100 creates opportunities, but discipline on what matters remains key to emerging as the winner.
Specifically, investors should ask: Will oil prices stay elevated forever?
For investors, understanding the different businesses – including how they respond to different cycles of the energy sector – is key to avoiding the risks while benefiting from the upside.
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Disclosure: Larry L. does not own shares in any of the companies mentioned.
