Investors are increasingly looking beyond Canada’s borders for energy-related investment opportunities. The 2024 Venture 50, which ranks the top performers on TSX Venture Exchange (TSXV) over the last year based on market capitalization growth, share price appreciation, and trading value, shows growing international focus, especially in Latin American countries.
Half of the 10 energy companies on the list have projects underway in Latin America, exploring the continent’s resource-rich hydrocarbon basins.
These ventures underscore the global reach and impact of Canadian investment, as well as the pivotal role that Canadian companies are playing in the development of energy resources around the world.
A notable example is Alvopetro Energy Ltd. (TSXV: ALV), a Calgary-based energy company with a presence in Brazil’s natural gas market. Its ability to navigate complex regulatory environments and successfully execute projects in foreign markets has resulted in the company’s placement on the Venture 50 list for the fifth time.
Other ranked energy companies with a presence in Latin America – namely Colombia – include New Stratus Energy Inc. (TSXV: NSE), NG Energy International Corp. (TSXV: GASX), and Arrow Exploration Corp. (TSXV: AXL).
“Last year was particularly favourable for globally-oriented Canadian energy companies,” says David Chelich, Head, Business Development, Global Energy and Diversified Industries for Toronto Stock Exchange and TSX Venture Exchange. “Commodity prices were robust, driven by strong demand from emerging economies and supply constraints in key markets. As a result, half of the ranked energy companies had the financial capacity to pay dividends or buy back shares.”
The companies on the 2024 ranking also reflect the increasingly global nature of TSXV. Their positive performance has reinforced investor confidence in the potential of international investments. It has also underscored the benefits of diversification, as exposure to different geographical regions and sectors may help mitigate risks and enhance returns.
International operations are not without challenges. Companies must navigate different regulatory regimes, manage currency risks, and adapt to local cultures and conditions. But as the experiences of Alvopetro and other Canadian firms demonstrate, these challenges can be effectively managed with the right strategies and capabilities.
Looking ahead, the trend toward internationalization is likely to continue. Latin American energy markets like Mexico and Brazil have moved away from state-owned hydrocarbon energy production in favour of a new privatized framework. Under the new model, companies may engage in a bidding process for hydrocarbon exploration and extraction contracts — a move which is expected to create more competition, driving innovation and efficiency.
The move toward privatization could present new opportunities for companies with existing hydrocarbon exposure in the region, including Sintana Energy Inc. (TSXV:SEI). Additionally, the Calgary-based issuer has a large presence in Namibia, which is quickly emerging as a prime hydrocarbon market and whose success has contributed to Sintana’s ranking as the top issuer among the energy sector with a 173% growth in share price and a 181% increase in market capitalization.
As investors become more comfortable investing abroad and Canadian companies continue to demonstrate their ability to succeed in foreign markets, TSXV will increasingly reflect the global nature of the energy sector.
To learn more about the energy issuers on the 2024 Venture 50, watch this playlist. You can view the complete list of ranked companies, including those in the clean technology and life sciences, diversified industries, mining, and technology sectors on our website.
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