30. June 2021 | 11:04 CET
BP, NewPeak Metals, Nordex: Three shares with energy
The energy turnaround offers excellent opportunities - that is what you read in many media reports. Indeed, regenerative energy has a great appeal - it does not produce any CO2 emissions. But this is not entirely true. The production of solar panels and wind turbines requires raw materials. Only when these are also produced in a climate-neutral way are regenerative energy sources genuinely sustainable. At the same time, oil and gas still play a significant role in the energy mix. We outline three companies involved in this complex of topics and also examine investment opportunities.
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ISIN: BP PLC DL-_25 | GB0007980591 , NEWPEAK METALS | AU0000104374 , NORDEX SE O.N. | DE000A0D6554
"[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
BP: A few wind turbines for a clear conscience
About a month ago, a court in The Hague ruled that Royal Dutch Shell must reduce its CO2 emissions by 45% by 2030. The ruling is not yet final, and the case is on appeal. Nevertheless, the shockwaves are severe and have also affected other companies, such as BP. In BP's case, there is also the fact that the Company made a more than 30% lower turnover in 2020. Operating income fell by USD 5.7 billion. More than 10 years ago, BP caused a real environmental scandal with the Deepwater Horizon oil rig accident. Even today, BP still has to pay for this and, at present, is paying USD 1.6 billion a year.
BP is working on a sustainable image and is building an offshore wind farm off the coast of Great Britain. In Germany, the subsidiary Aral wants to build 500 fast-charging points for electric cars at 120 service stations. Although the dividend yield is around 5%, this only shows that the share price has been under pressure for months - in one year, the stock has managed a yield of just 3.4%. The stock market environment is currently relatively poor for oil multinationals.
NewPeak Metals: Many projects + exciting oil investment
NewPeak Metals is currently in a different situation. The Company has set itself the goal of advancing various early-stage projects with low investments. These include two gold projects in Argentina and properties in New Zealand, Finland, and Sweden. In New Zealand, NewPeak Metals has discovered silver, lead and zinc. "What sets all of our projects apart is that we can generate significant returns with relatively little expenditure. We spend about AUD 1 million per project and drill between 2,000 and 3,000m. When such drilling programs are well thought out and targeted, much can be deduced about a project's potential. And that is the opportunity for investors: We can achieve a lot with few resources," CEO David Mason sums up the Company's strategy in an interview.
In addition to the commodity projects, NewPeak also has an exciting oil investment in its portfolio. The Company holds about 30% in Lakes Blue Energy, a gas company from Australia. As of July, the moratorium imposed by the Australian government to halt onshore gas exploration in the Australian state of Victoria will end. Lakes Blue Energy's stock has not traded for many months. With energy prices at a very different level today than they were then, the Company's stock could also bring a lot of joy to NewPeak Metals shareholders. The combination of numerous projects and the particular situation surrounding Lakes Blue Energy makes the stock exciting. Investors should keep the smallcap on their radar in the coming days and weeks.
Nordex: Which way is the wind blowing?
A former German investor darling is the Nordex share. However, the wind has long been blowing from a different direction: What was very popular ten years ago is now a shadowy existence. There are good reasons for this: In 2020, Nordex made a loss of around EUR 130 million, but at the same time was able to increase sales by more than 40%. Many new orders were added at the end of 2020, so the start into the current year has been successful. Nordex was also able to stabilize its margin due to a more profitable platform for new wind turbines.
The share is currently picking up speed again and heading for the high of over EUR 28 reached at the beginning of April. However, the price trend of the past weeks has shown that it could be difficult for the stock to advance to new price levels. Despite the still weak 2020 figures, the share has picked up momentum. The spirit of the times also seems to speak in favor of Nordex. However, investors must expect increased volatility. Nordex is not a sure-fire winner.