Why is the Santos share price glowing green at the end of the week?

The energy trade continues to wind up this week.

| More on:
A male oil and gas mechanic wearing a white hardhat walks along a steel platform above a series of gas pipes in a gas plant

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Santos shares have moved into the green on Friday with a small gain 
  • The ABS also released its latest industry statistics today, highlighting strengths in the energy sector 
  • The Santos share price is also less than 1% in the red for the past 12 months 

The Santos Ltd (ASX: STO) share price is pushing more than 2% higher on Friday at $7.07.

Energy is the best performing sector today with the S&P/ASX 200 Energy Index (ASX: XEJ) jumping 2.5% late into the session.

Meanwhile, the Australian Bureau of Statistics (ABS) released the latest statistics related to the energy industry today, and trends are positive.

Energy industry realises highest growth in May

According to the ABS report, the electricity, gas water and waste services industries increased by around 23% in May. This industry saw the largest gain relative to peers.

"The increase comes as energy supply issues impact the industry, including rising input costs and plant outages," the ABS said.

As a result, the energy industry saw its highest turnover growth in May, joining every other industry recording a year on year increase in business turnover.

The Mining industry saw a 36% gain. The ABS says "[r]ises in commodity prices, including for coal and natural gas, continue to contribute to relatively high growth in turnover in the Mining industry."

Growth translates well for Santos share price

With players in the resources industry recognising such strengths across the back end of Q2 FY22, then it could be that investors are positioning themselves to capture these tailwinds.

Although, it's been no secret that energy markets have surged to unfathomed heights in 2022, so broad market strength is likely a factor as well.

Moreover, energy markets continue to strengthen at pace – European and UK gas contracts have surged 130% over the past month.

The gain suggests a higher realised price for those supplying the markets, but we'll have to wait until earnings time to see the downstream effect.

Whilst today's gain puts the brakes on a fairly rapid decline in the Santos share price, the buying activity is on thin volume – just 40% of the 4-week average.

The Santos share price is also less than 1% in the red for the past 12 months, after falling from a 52-week closing high of $8.47 on 7 June.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Energy Shares

Coal miner holding a giant coal rock in his hand making a circle with his hand, symbolising a rising share price.
Energy Shares

2 ASX 200 coal stocks to buy now despite tariff impact: Expert

Investors are nervous about the impact of US tariffs on global coal consumption.

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Share Market News

US-China tariff deal sparks strong week for ASX 200

Energy shares ripped 5.77% higher while the ASX 200 lifted 1.37% over the five days.

Read more »

Coal miner standing in a coal mine.
Dividend Investing

Down 22% this year, does this ASX dividend share still offer investors a 10% yield?

There's a difference in trailing and forward dividend yields.

Read more »

Worker inspecting oil and gas pipeline.
Energy Shares

What's moving the Woodside share price on Friday?

Here's the latest news from the ASX 200 oil and gas giant.

Read more »

Miner looking at a tablet.
Share Gainers

Up 93% since April should I still buy Boss Energy shares now?

Boss Energy shares, the most shorted on the ASX, have almost doubled in value in one month. Now what?

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Share Gainers

Boss Energy shares have rocketed 90% in a month. Here's why

The massive rally in Boss Energy shares will be painful to the host of short sellers betting against the uranium…

Read more »

Oil worker using a smartphone in front of an oil rig.
Energy Shares

ASX 200 energy shares plunge on shock OPEC move

ASX 200 energy shares like Woodside and Santos are tumbling on Monday. Let’s find out why.

Read more »

Female oil worker in front of a pumpjack.
Energy Shares

Should you buy Woodside shares in May?

Is this energy giant a good investment right now?

Read more »