This repository contains the full dataset, code, and supporting documents used to analyse the financial performance, volatility characteristics, and transition readiness of major global energy companies over the past year.
This study investigates the financial performance and risk profiles of major energy equities during a period characterized by heightened geopolitical volatility and inflationary pressure. Utilizing daily return data and fundamental metrics retrieved from Bloomberg, the analysis contrasts the behavior of incumbent fossil fuel majors against emerging renewable energy firms. Empirical results reveal a distinct structural bifurcation within the sector: renewable assets exhibit significant leptokurtosis and high market sensitivity (Beta > 1), characterizing them as speculative growth plays, whereas integrated oil majors function as defensive anchors with lower volatility. Furthermore, valuation analysis supports the presence of the "Molodovsky effect," where investors assign premium valuations to renewable firms based on future growth potential ("pricing for dreams"), while discounting the robust current earnings of traditional producers ("pricing for reality"). Finally, regression analysis demonstrates a positive correlation between ESG scores and profitability metrics (ROA and ROE), suggesting that sustainable practices are increasingly associated with operational efficiency rather than merely compliance costs.
All data, code, charts, and full PDF report can be found in this repository.
➡ Open the main analysis:
Groupwork.ipynb
➡ Read the full report:
SMM150_BIF_6.pdf