The crash in the oil price has left many shareholders reeling from the subsequent fall in share prices of numerous oil and gas companies.
Likewise, the price crash has encouraged plenty of investors to begin scouring the market for bargain opportunities!
The recently released March quarter update from listed investment company (LIC) Bki Investment Co Ltd (ASX: BKI) has given investors a different avenue of enquiry in the hunt for investment opportunities in the context of low oil prices.
9 companies set to benefit from a low oil price
The managers of Bki Investment Co have obviously spent a great deal of time analysing the dynamics of the global energy market and one of their conclusions is that "there are many companies and industries where the cost of fuel is a key input in their business model."
Amongst the industries which Bki suggests could benefit are Transport, Manufacturing, Agriculture, Retail and Utilities.
Meanwhile, the LIC's manager singled out 9 portfolio holdings which it believes could benefit from lower fuel costs.
- Transurban Group (ASX: TCL)
- Lindsay Australia Limited (ASX: LAU)
- Qube Holdings Ltd (ASX: QUB)
- New Hope Corporation Limited (ASX: NHC)
- Sydney Airport Holdings Ltd (ASX: SYD)
- ARB Corporation Limited (ASX: ARB)
- Caltex Australia Limited (ASX: CTX)
- Woolworths Limited (ASX: WOW)
- Wesfarmers Ltd (ASX: WES)
The above nine companies are viewed as winners from lower fuel prices for a variety of reasons.
For example, Bki believes more commuters will be attracted to Transurban's toll roads and Sydney's airport as lower petrol prices encourage more driving and flying.
Likewise, lower fuel input costs should lower the operating cost of large volume fuel consumers such as Lindsay Australia and Qube.
Meanwhile, the flow on effect to consumers of cheaper petrol should arguably lead to increased demand. Australia's largest petrol retailers, which include Caltex, Woolworths and Coles (owned by Wesfarmers), stand to be key beneficiaries.
