The S&P/ASX 200 Index (ASX: XJO) dropped 7.8% in March, despite the best lifting efforts of most ASX 200 energy shares.
Indeed, from market close on 27 February through to the closing bell on 31 March, the S&P/ASX 200 Energy Index (ASX: XEJ) rocketed a jaw-dropping 18.5%.
Here's how these top Aussie oil and gas producers fared over the month just past:
- Woodside Energy Group Ltd (ASX: WDS) shares jumped 23.8%
- Santos Ltd (ASX: STO) shares gained 17.8%
- Beach Energy Ltd (ASX: BPT) shares gained 18.2%
- Karoon Energy Ltd (ASX: KAR) shares surged 32.9%
So, why were investors piling into the energy sector in March?
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ASX 200 energy share leap on oil price surge
The massive outperformance for ASX 200 energy shares like Woodside and Karoon was driven by a surge in oil and gas prices following the US and Israeli attack on Iran.
On 27 February, Brent crude oil was trading for US$72.50 a barrel, according to data from Bloomberg. On 31 March that same barrel was fetching US$107.50, up more than 48% over the month.
That meteoric increase came as some 20% of the world's oil supply routes were upended by the war's essential closure of the Strait of Hormuz, with gas supplies also hit by attacks on Middle East LNG plants.
Atop hoping for share price gains, investors also look to have been buying the ASX 200 energy shares with hopes that surging profits will see them declare supersized dividends later this year.
What else happened with the Aussie energy giants in March?
Beach Energy, Santos and Woodside were among the ASX 200 energy shares to release significant announcements in March.
On 9 March, Beach and Santos announced that they had taken a Final Investment Decision (FID) to proceed with their joint venture Moomba Central Optimisation (MCO) project, located in South Australia.
Commenting on the decision, which saw Santos shares close up 2.4% on the day and Beach Energy shares gain 1.3%, Beach Energy CEO Brett Woods said:
The MCO project will unlock significant value from the Cooper Basin asset, driven by efficiencies gained from the rationalisation of existing satellite facilities into a new centralised compression facility, and supporting future production growth from the Central Fields.
March also saw Woodside reveal its new CEO, after former CEO Meg O'Neill stepped down in December following four years in the top role.
On 18 March, the ASX 200 energy share reported that Liz Westcott was taking over as CEO and Managing Director, effective immediately.
Westcott had been serving as acting CEO since O'Neill stepped down in December. Before that she served as Woodside's Executive Vice President and COO, Australia.
