2015 was a horror year for some companies, with several losing more than two-thirds of their share price value and plenty of ASX shares falling 50%.
Among the worst were Bradken Limited (ASX: BKN) – down 90%, Slater & Gordon Limited (ASX: SGH) – down 89%, MMA Offshore Ltd (ASX: MRM) ex-Mermaid Marine – down 79% and Liquefied Natural Gas Ltd (ASX: LNG) down 71%.
Among the large caps, Origin Energy Ltd (ASX: ORG) and Santos Ltd (ASX: STO) both fell around 60%, following a global crash in oil prices.
| Company | Fall |
| Bradken | -90% |
| Slater & Gordon | -89% |
| MMA Offshore | -79% |
| Liquefied Natural Gas | -71% |
| Santos | -60% |
| Origin Energy | -63% |
Source: CapitalIQ
Mining equipment producer Bradken has been hit by falling mining investment which has negatively impacted revenues and earnings. With mining investment not predicted to hit bottom until 2017, Bradken appears to have another year of pain ahead of it, unless it can garner a takeover offer, with a number of potential acquirers circling the company over the past few years.
Lawyers Slater & Gordon have faced a number of issues, including questions from regulators over accounting practices and concerns over its UK acquisition of part of the Quindell business. In a large slice of irony, the law firm could even face a class action, after abandoning its earnings guidance in late 2015. 2016 could be the defining year for S&G, either seeing it regain its former market darling status or potentially falling into voluntary administration after taking on hundreds of millions of debt.
MMA Offshore has been hit by falling oil prices, as the company provides fleet support and services to oil rigs and companies conducting offshore drilling. Falling oil prices mean oil and gas companies have drastically cut capital expenditure and renegotiated contracts with suppliers, and the company is struggling to keep its fleet fully utilised. With oil prices likely to stay low again in 2016, there's no pot of gold at the end of the 2016 rainbow for MMA Offshore.
Liquefied Natural Gas Ltd (LNGL) also faces the prospect of lower oil and gas prices in 2016 negatively affecting its business, so a recovery in its share price appears unlikely. Santos and Origin Energy are in the same boat – so to speak.
Foolish takeaway
It appears that factors affecting 2015's worst performers will continue throughout 2016, and only an exceptional event is likely to see them recover some of the share price falls of last year. Foolish investors may want to continue steering clear.
