United Global was listed on July 2016, but the company has been in business for more than two decades, establishing itself as an independent lubricant seller. Not only does it distribute products made by other companies, United Global makes its own range of high quality, well-engineered products sold under house brands like “United Oil”, “U Star Lube”, “Bell1”, “Hydropure” and “Ichiro”. In addition, the company is involved in the trading of base oils, additives and lubricants.
The company has existing strategic ties with oil giants such as China National Offshore Oil Corporation, which helps deepen and broaden its access to markets it is distributing to in more than 30 countries.
The company, led by CEO Jacky Tan, is ready to widen the company’s ties with partnerships and ventures. In September 2019, oil major Repsol acquired a 40% stake in United Global’s subsidiary for up to US$46.5 million. United Global believes its strategic partnership with Repsol — a global energy company with a strong international brand and listed on the Madrid Stock Exchange, will lead to new growth opportunities for both companies. In April, United Global received the final payment from the disposal and according to its earlier announcement, the company plans to channel the proceeds to fund future business expansions, investments and acquisitions when suitable opportunities arise. Not only is United Global overall sector winner, it is also top for weighted return on equity.
Rex International Holding, an oil exploration and production company, is the company that has given the best shareholders’ returns for this industry sector. From 5 cents as of June 30, 2017, the company’s share price had increased to 17 cents as at June 30. This gives it a CAGR of 55.2%, beating other companies of this sector in this measurement. The company has interests in fields in Oman and Norway. The company’s other key asset is Rex Virtual Drilling, which is a proprietary technology based on a set of computer algorithms for seismic data analysis to identify the presence of liquid hydrocarbons. Rex claims oil exploration companies will find this technology useful in “de-risking” their operations.
Avarga, which used to be known as UPP Holdings, has been named the company in this sector with the fastest growth in profit after tax. UPP, which stands for United Pulp and Paper, was the company’s original business — where it specialises in the production of cardboard used in packaging. In addition, it operates a power plant in Myanmar, giving a steady recurring earnings stream. Most recently, the company acquired a controlling stake of Taiga Building Products, which is listed on the Toronto Stock Exchange. In FY2016, the company reported earnings of $12.6 million. This number increased to $32.6 million in FY2019, which is equivalent to a compounded annual growth rate of 37.4%, making Avarga the leader in this metric within the sector.
