November 14th, 2024 | 07:30 CET
Big news for Siemens Energy and F3 Uranium! Shock at Plug Power!
A golden age for uranium. The US aims to triple its nuclear energy capacity, and uranium explorers such as F3 Uranium should benefit massively from this. Like the uranium price, stocks in the sector have consolidated and are currently offering an exciting entry opportunity. This year, Siemens Energy has impressively demonstrated how quickly things can go up. Now, the DAX-listed company has also raised its medium-term targets. However, the wind power division continues to struggle. At Plug Power, revenue is now also faltering. Shareholders of the hydrogen specialist have become accustomed to losses, but they are still higher than revenue. Can it go on like this?
time to read: 3 minutes
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Author:
Fabian Lorenz
ISIN:
SIEMENS ENERGY AG NA O.N. | DE000ENER6Y0 , F3 URANIUM CORP | CA30336Y1079 , PLUG POWER INC. DL-_01 | US72919P2020
Table of contents:
"[...] Recovery rates of more than 90% rare earths are another piece of the puzzle on the way to the economic viability of our project. [...]" Craig Taylor, CEO, Defense Metals
Author
Fabian Lorenz
For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.
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F3 Uranium: Strong industry news; when will uranium prices and stocks jump?
The US is going full throttle on nuclear energy. By 2050, capacities are to be tripled. Specifically, 200 gigawatts (GW) are to be added to the grid. This plan was presented by the outgoing Biden administration, and it is unlikely to be scaled back under Trump. After all, he is considered a friend of the "old" energies. To reach 200 GW, existing power plants are to be modernized, older ones are to be put back into operation, and new reactors are to be built. All three variants need one thing: uranium. This means the uranium industry is facing golden times, especially for companies with North American reserves, like F3 Uranium.
F3 Uranium is currently developing a project in the Athabasca Basin in western Canada. The region is a hotspot for the uranium industry. The data from previous drilling is promising: uranium grades (U3O8) over lengths of 12 to 15 m with percentages ranging from 7% to 9.4% at the top. With the last drilling in the summer of this year alone, the uranium-bearing zone was extended by over 700 meters. Further drilling is currently in progress.
Currently interesting: The stock is currently trading at CAD 0.22. The last capital increase in October to finance the next drilling program was placed at CAD 0.40. Since then, the uranium price has corrected. The consolidation should be completed soon, and then it can quickly go back up to CAD 0.40. The timing to enter the uranium sector and F3 appears very interesting at the moment.
Siemens Energy: What comes after a 250% price increase?
Like F3 Uranium, Siemens Energy is considered to be one of the beneficiaries of the massive investments in energy infrastructure. Yesterday alone, Siemens Energy's shares gained around 12%. This means the DAX company has gained over 250% in value in the current year.
The Company is currently bursting with strength, and yesterday, it raised its medium-term targets. Thanks to the gas and grid business, the profit margin is expected to improve significantly as early as fiscal 2024/25. This can compensate for the continuing weakness in the wind power business. In the coming years, Siemens Energy plans to increase sales in the high single-digit to low double-digit percentage range. In fiscal year 2027/28, the Company aims to achieve an ordinary margin of 10% to 12%. The previous target was at least 8%.
"Fiscal year 2024 was a pivotal year for our company. Based on strong order intake and successful project execution across all our business units, we achieved all our targets. Our focus remains on profitable growth, supported by extremely positive market conditions. The new medium-term targets through 2028 reflect our leading role in the energy transition," said Christian Bruch, CEO of Siemens Energy AG.
Plug Power: Revenue decline!
Unfortunately, there is currently no sign of growth or profit at Plug Power. In the third quarter of 2024, revenue totaled USD 173.7 million, down from USD 198.7 million in the same quarter last year. Although the operating loss was reduced from USD 273.9 million to USD 216.2 million, it is still massive and exceeds revenue. Plug Power's net loss in the third quarter of 2024 was a whopping USD 211.2 million. In the year-ago quarter, the net loss was USD 288.0 million. The only bright spot: the hydrogen specialist still has liquidity of USD 1 billion – this is necessary given the burn rate.
With a view to the operating performance, Plug CEO Andy Marsh's comments on the figures sound like a rallying cry: "Plug Power's performance this quarter underscores our commitment to building a sustainable and profitable hydrogen future. Our progress in deploying electrolysers, advancing hydrogen production, and expanding into new markets reflects our team's commitment to leading the development of the hydrogen economy".
There is little reason at present to buy Plug Power shares. The uranium market and F3 Uranium, however, are currently exciting. Despite the strong news flow, particularly from the US, the uranium price is consolidating. This offers an exciting entry opportunity for uranium stocks such as F3 Uranium. Siemens Energy is one of the current year's success stories. Operationally, things are going well, even if the wind segment remains prone to unpleasant surprises. However, the stock has already performed strongly.
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