Menu

Recent Interviews

Justin Reid, President and CEO, Troilus Gold Corp.

Justin Reid
President and CEO | Troilus Gold Corp.
36 Lombard Street, Floor 4, M5C 2X3 Toronto, Ontario (CAN)

info@troilusgold.com

+1 (647) 276-0050

Interview Troilus Gold: "We are convinced that Troilus is more than just a mine".


John Jeffrey, CEO, Saturn Oil + Gas Inc.

John Jeffrey
CEO | Saturn Oil + Gas Inc.
Suite 1000 - 207 9 Ave SW, T2P 1K3 Calgary (CAN)

info@saturnoil.com

+1-587-392-7900

Saturn Oil + Gas CEO John Jeffrey: "Acquisition has increased production by 2,000%"


Gary Cope, President and CEO, Barsele Minerals

Gary Cope
President and CEO | Barsele Minerals
Suite 1130 - 1055 W. Hastings Street, V6E 2E9 Vancouver (CAN)

info@barseleminerals.com

+1(604) 687-8566

Interview Barsele Minerals: 'I have never seen a project with such good general conditions'.


07. October 2020 | 12:24 CET

BP, Royal Dutch Shell, Saturn Oil & Gas: The rebound with an announcement!

  • Oil
Photo credits: pixabay.com

When someone talks about the largest commodities market in the world, they mean the oil market. Every day, almost 100 million barrels of black gold are produced and delivered worldwide, even though Elon Musk adamantly claims "Oil is out!” - He would be particularly well advised to find out how many oil products are used in a Tesla. More than 300 components are made of oil derivatives. According to British Petroleum, undoubtedly one of the major players in the industry, the global oil demand peaked in 2019. In its annual energy outlook, the energy company predicts a global decline in oil demand but a strong gas demand until 2050. Renewable energies are the fastest-growing energy sources over the next 30 years.

time to read: 3 minutes by André Will-Laudien
ISIN: CA80412L1076 , GB0007980591 , GB00B03MLX29


John Jeffrey, CEO, Saturn Oil + Gas Inc.
"[...] The Oxbow Asset now delivers a substantial free cash flow stream to internally fund our impactful drilling and workover programs. [...]" John Jeffrey, CEO, Saturn Oil + Gas Inc.

Full interview

 

Author

André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author


British Petroleum plc (BP) - Who is correct with the forecast?

It is sometimes not decisive whether BP has miscalculated by 10 or 20 years. At its core is the opinion that large oil producers, in particular, must now look for alternatives to their outdated business model. For years now, they have been investing free cash flows in alternative energy production, primarily regenerative. BP, in particular, needed a greener coat of paint after the Deepwater Horizon disaster, and the latest company policy indicates that this mindset is being reinforced.

With a balance sheet total of just under EUR 300 billion, BP is one of the 10 largest oil and energy companies in the world. Its net profit in 2019 was EUR 16.7 billion and has fallen to around EUR 4.5 billion in the current year, which is an even quarter. Although the share price was able to stabilize after the March sell-off, it recently fell back to below EUR 2.50. The high in the last 3 years was 6.75 EUR - a 65% loss. However, the dividend yield is still just under 8% even after the two-time reduction. Goldman Sachs sees a 70% chance in the BP share for the next 2 years.

Royal Dutch Shell plc - Under the wheels!

Industry colleague, Royal Dutch Shell, has not fared much better. The British-Dutch oil company is one size bigger than BP. Shell has total assets of over EUR 360 billion and a result of EUR 25.5 billion in 2019. Here, too, earnings are expected to be averaged to around EUR 8 billion, and the dividend yield will drop to around 5%. The share price has fallen just as sharply as at BP, a full 65% to the 3-year high of EUR 29.70.

Shell plans to lay off a total of up to 9,000 employees as part of a major overhaul to shift the focus to low-carbon energy by 2022. This will affect a good 11% of the total workforce of 83,000. Shell expects the reorganization to bring annual cost savings of up to EUR 2.5 billion by 2022. The shareholders will be happy, but the employees will have to tremble for the time being as to whether these steps will mean the end of the banner. There have been a lot of buy recommendations recently, but this is probably because the share price is well below the long-term average prices of all oil giants. The oil price will be important; it shouldn't see the lows of May 2020 again anytime soon.

Saturn Oil & Gas: Small but nice.

A real alternative to the oil giants is the small Saturn Oil & Gas from Canada. The company produced 1,400 barrels a day at peak production before Corona and is looking for expansion opportunities. The production price is around 12 USD operationally, which still provides a nice margin on current levels production. Of course, the company also conducts forward business and tries to stabilize its income via the forward curve. This increases planning reliability for future cash flows from oil sales and serves to service all financial liabilities.

The company's largest properties are located in West Central Saskatchewan. The oil fields offer good access to the underground deposits of Viking light oil. We also consider the regulatory environment to be "oil-friendly" - this means that production here will last several years until new developments are made to renew or expand the portfolio of deposits. The falling US oil price of WTI has put many local companies in financial difficulties, which puts the management of Saturn Oil & Gas in an acquisition role. If demand remains at a low level worldwide due to the COVID pandemic, there will be good buying opportunities among competitors.

Conclusion: with 234.6 million shares outstanding and a price of CAD 0.10, the company is currently valued at just under EUR 15 million, while the share price was already at a high of CAD 0.30. Jim Payne, the CEO of dynaCERT with whom we are familiar, recently bought shares. One may expect that in the event of a general market turnaround in the oil sector, very rapid upward price movements will take place, as the stock is tight and hardly any shares are available at the current level. With some nerves and timing fortune, the time is ripe for a speculative entry. Goldman Sachs blows with the oil multinationals to the attack. Of course, we are actively watching this.


Author

André Will-Laudien

Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

About the author



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

28. July 2021 | 12:03 CET | by Armin Schulz

BP, Saturn Oil + Gas, Gazprom - Oil companies offer great opportunities

  • Oil

The oil price came under pressure in mid-July following an OPEC meeting. Starting in August, production will be increased by 400,000 barrels per day. This arrangement is to apply initially until September 2022. From May 2022, the United Arab Emirates, Kuwait, Iraq, Saudi Arabia and Russia all want to increase their production capacities, which would mean additional production of around 1.6 million barrels per day. The price of crude oil subsequently slumped by around USD 10 to USD 65. However, the downward trend was already broken on July 20, and the price has since climbed back up to USD 72. Today we highlight three companies that produce oil.

Read

26. July 2021 | 11:04 CET | by André Will-Laudien

Varta, Deutsche Rohstoff AG, Nordex: Multipliers in the commodity sector!

  • Oil

Commodity companies are currently sitting in the front row. But not all of them can profit! Only if a company has invested in recent years can it now deliver. Mining operations worldwide are currently working at the limits of their capacity, and supplying customers is also causing increasing problems. That is because supply chains have been badly hit by a lack of transport capacity, skyrocketing freight rates and pandemic-related outages. It is particularly noticeable in industry: Procurement prices for raw materials and precursors are going through the roof. We take a look at the books of some of the companies involved.

Read

22. July 2021 | 11:57 CET | by Stefan Feulner

SAP, Deutsche Rohstoff, Bayer, Condor Gold - Better than expected

  • Oil

The reporting season for the second quarter of 2021 is in full swing. After the weak figures from the same period last year, caused by the Corona pandemic, analysts and investors expect significant earnings increases from companies that suffered heavy losses due to the global lockdowns. On the other hand, it will be interesting to see whether Corona beneficiaries such as Amazon can confirm their growth.

Read