Time to invest in Energy companies once more?

BG Group is well positioned in developing markets. They have significant presence in Asia and Brazil, and these large emerging economies are continuing to witness strong growth in comparison to the more mature traditional nation states.

These emerging nations’ population dynamics are also outstripping the west.  According to figures from the most recent UN Census report,  between now and 2035 the world’s population will rise 1.7bn from 6.9bn to 8.6bn. Importantly, 110m of this figure will be within OECD counties and 1.6bn from developing counties. OPEC is also suggesting an increase in energy demand of 51% by 2035.

Therefore BG is well positioned to capitalise on this increased demand!

So, investment in BG Group’s stock should provide sustainable earnings and is a long term capital appreciation play?

I look forward to your thoughts.

Jonathan Mooney is the Energy & Utilities Senior Consultant at Interim Partners.

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