By how much has "decarbonization" impacted APAC oil & gas valuations?

We believe that the market has generally concluded that global oil & gas stockvaluations have suffered a derating as decarbonization concerns have led globalinstitutional investors to underweight the sector. Have APAC oil & gas sector stockvaluations derated as well? We tested this question with a formal statistical approach.Investors may be surprised with our conclusion that decarbonization concerns can beruled out as a primary contributing factor toward sector derating in APAC.

GHG intensity not an obvious differentiator of share price performance

Contrary to our expectation, the majority of the eight share prices we modelled currentlyfall close to what we would expect based on the outcome of the key historical driverslike oil & gas prices. Furthermore, the relative greenhouse gas (GHG) intensity ofindividual companies did not appear to be a differentiating factor in those outcomes.SNP-H for example performed close to what we would expect just based on thehistorical drivers, yet has the highest GHG intensity (scope 2) in the region.