BP, Globex Mining, Palantir – Energy, raw materials, and data are economic drivers

BP – Focusing on the core business of oil and gas

The British energy giant BP presented impressive figures in the second quarter of 2024, achieving a 7% increase in core profits compared to the previous year. This positive development is mainly attributed to higher oil prices in the first half of the year. The Company is committed to increasing shareholder returns and plans share buybacks worth USD 3.5 billion and a 10% dividend increase. New projects in the Gulf of Mexico are expected to further boost earnings growth and the share price in the future. However, oil prices have fallen significantly since the beginning of July, which will likely result in weaker Q3 figures.

BP plans further expansions and recently held a high-level board meeting in India to develop new business opportunities. India, which is working to increase its oil and gas production, offers the Company interesting opportunities. In particular, the cooperation with Reliance Industries, which operates 1,900 gas stations, among other things, is promising. A significant investment in Indian oil and gas blocks was made in 2013. Analysts are watching developments and the potential impact of these expansion plans on BP's share price with great interest.

There will be no further expansion in the wind power sector. The group announced the sale of its US onshore wind business to focus more on the solar industry. This decision comes against the backdrop of rising costs in the offshore wind market. CEO Murray Auchincloss has decided to focus more on the core competencies of oil and gas in the future in order to maximize returns. In the last 90 days, 9 "Buy" recommendations have been made, while 7 analysts have recommended the share as "Hold". The share price has recently fallen along with the weakening oil price and is currently trading at EUR 4.678.

Globex Mining – Covers a wide range of commodities

Globex Mining is a Canadian mineral exploration and development company with a diversified portfolio of precious metal, base metal, and specialty mineral projects in eastern Canada, Germany, and the United States. The Company pursues a business model based on acquisitions, asset appreciation through exploration, and intellectual input. Globex generates revenues through options, sales, and royalties. With a current portfolio of 252 projects, including 106 royalties, Globex focuses on developing and selling prospective assets while maintaining minimal share dilution and low debt. The management team has extensive experience in the exploration and mining industry.

The Company owns numerous former mines and has an extensive number of historical and NI 43-101 compliant resources. Most recently, the Company benefited from new hydrogen exploration in the vicinity of its Guigues Silica property. This project, originally acquired for the extraction of silicon dioxide, is now located in an area with significant hydrogen discoveries. Research by Quebec Innovative Materials Corp. and the INRS has shown hydrogen concentrations of over 1000 ppm there. This development could provide Globex with significant economic benefits. The Bald Hill Antimony Property in New Brunswick was successfully leased to Superior Mining International Corp.

Under the terms of this option agreement, Globex will receive CAD 680,000 in cash over four years, as well as 2 million shares from Superior. In addition, Superior has committed to investing a minimum of CAD 4.6 million in exploration. Globex retains a 3.5% royalty on the gross metal revenue, with Superior having the option to buy an additional 0.5% for CAD 500,000. Previous drilling confirms antimony grades of up to 43% and an extension of the mineralized zone over 450 m in length and 300 m in depth. Given the recent restrictions on antimony exports from China, the project has great potential. Furthermore, the Company's portfolio of 126 precious metal projects is benefiting from the rising gold price. However, the share price has not yet reflected this and is currently trading at CAD 0.86. This results in a market capitalization of just CAD 48.3 million.

Palantir - A strong rise and its challenges

Data is crucial today, as it enables informed decision-making, improves the personalization of products and services, and creates competitive advantages. It also helps to increase efficiency and reduce risk in a wide range of industries. Palantir's solutions help to analyze the growing volumes of data. The growth in the US commercial and government segments demonstrates the demand. In the second quarter, the Company exceeded revenue expectations by USD 27 million and achieved year-over-year growth of 27%. In particular, commercial revenue in the US rose by 55% to USD 307 million.

This is largely due to the success of the Artificial Intelligence Platform (AIP), which attracts new customers and deepens existing relationships. Palantir's focus on operational efficiency is paying off, as reflected in the expanded margins. In Q2, the Company posted a non-GAAP operating margin of 37% and raised its full-year guidance to 35%. The solid balance sheet metrics – no debt and significant cash reserves – give Palantir financial flexibility to continue investing in growth opportunities and drive product development.

Despite its impressive growth, Palantir remains controversial due to its high valuation. The Company is currently valued at an EV/EBIT ratio of around 60, representing a significant premium of 300% over its industry peers. In addition, large shareholders have sold a significant amount of shares. This can be seen as a warning sign that, at least in the short term, the valuation is too high. The Company's shares have gained a remarkable 107% since the beginning of the year, while the S&P 500 has risen by just 18%. At USD 36.84, the share price is currently trading just below the year's high of USD 38.19.

Energy, commodities and data play a central role in the modern global economy. BP is refocusing on oil and gas projects and plans share buybacks and dividend increases while selling its wind power business. Globex Mining diversifies its portfolio through strategic acquisitions and generates income from diverse commodity projects. Palantir, on the other hand, uses its data analysis capabilities to generate significant revenue growth through innovative AI platforms, but struggles with a high share valuation and share sales by major shareholders. These companies represent significant forces in their respective sectors, where sustainable management and resource utilization are crucial.