Energy, luxury hotel groups growing steadily; plantations have high ROE

SINGAPORE (Nov 4): The sector is a hodgepodge of companies involved in vastly different businesses, the result of combining three Singapore Exchange industry classifications with too few billion-dollar companies to stand on their own. A comparison of their performance says more about the economics of their industries than anything else.

AusNet Services does not have an especially high return on equity (ROE), because it operates a heavily regulated business. Yet, it managed to deliver decent and steady pre-tax profit growth during the three years to 2015. It also has a consistent record of paying dividends. Amid the broad market uncertainty of the last few years, it had the best stock return in this diverse group, making it the top overall scorer.

AusNet Services claims to be the largest diversified energy network business in Victoria, Australia. The Melbourne-headquartered company owns and operates some A$12 billion ($12.7 billion) worth of electricity and gas distribution assets, including the statewide electricity transmission network. It also has a non-regulated division, which provides specialist utility services. The company has a dual listing in Australia and Singapore.

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