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Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


Matthew Salthouse, CEO, Kainantu Resources

Matthew Salthouse
CEO | Kainantu Resources
3 Phillip Street #19-01 Royal Group Building, 048693 Singapore (SGP)

info@krl.com.sg

+65 6920 2020

Interview Kainantu Resources: "We hold the key to growth in the Asia-Pacific region".


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".


23. June 2021 | 15:15 CET

BYD, Plug Power, Saturn Oil & Gas: Take a close look at the energy transition!

  • Oil
Photo credits: pixabay.com

Everyone is talking about electromobility and hydrogen - but what does it look like in reality? There are still many combustion engines in good condition on the roads. Scrapping them cannot be sustainable. The global energy mix also shows that renewable energies are a welcome trend but by no means the rule: As reported by the International Energy Agency, oil accounted for 31.5% of primary energy supply in 2018. It is followed by coal at 26.8%, and gas at 22.8%. Fossil energy sources thus had a share of more than 80% in 2018. These energy sources will still be needed in the coming years.

time to read: 3 minutes by Nico Popp
ISIN: CNE100000296 , US72919P2020 , CA80412L1076


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

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

About the author


BYD: Why ESG risks lie dormant here, too

Even BYD's fancy vehicles do not run on air and love - the batteries of the electric cars have to be charged. If coal is burned for this purpose, an electric vehicle, in combination with its production, is likely to have a worse carbon footprint than a modern diesel. On the other hand, electric driving is somewhat cleaner if the energy comes from gas. Renewable energy sources are ideal, but these only took a share of around 2% in 2018. It is also essential to consider the production of solar cells and wind turbines, including all supply chains - only if regenerative energy is produced sustainably all around does it make sense.

As the trend is increasingly moving towards taking production chains into account and quantifying and reporting environmental impacts, the discussion around electric cars and their sustainable use is likely to really take off. Manufacturers like BYD are therefore not immune to the climate debate. However, BYD is well-positioned: The e-car company produces its batteries and semiconductors, giving it some advantages over the competition. However, many of the raw materials come from China - and are sometimes extracted there under controversial conditions. So while Western carmakers are building their own supply chains around batteries and paying more attention to their ESG profile, BYD could be exposed to risks in this context.

Plug Power: Why the numbers do not matter in detail

With hydrogen, too, it is crucial that it is "green" hydrogen. What is meant here is hydrogen that has been produced with the help of renewable energy. In this context, various engineers have made progress in recent years. There is also a promising solution provider from Germany with Enapter. The US fuel cell manufacturer Plug Power also came under the wheels in the course of the slump in hydrogen stocks. Above all, the market complained about the thin sales and weak results paired with high valuations.

Plug Power has recently seen the latter come back. Yesterday, the Company published quarterly figures. The Company had already announced a significant increase in sales and earnings compared to the same quarter last year in advance. However, around USD 70 million in sales combined with a market capitalization of EUR 14.3 billion are still somewhat meager. It does not matter whether the actual figures are slightly higher than expected or not. The share has recovered recently but is still in a downward trend. The stock is not out of the woods and is still expensive.

Saturn Oil & Gas: Value, value, value

The complete opposite of Plug Power is Saturn Oil & Gas. The Canadian oil producer with an ESG profile is valued at only EUR 25 million on the stock market. However, the Company recently made a spectacular acquisition: for CAD 93 million, it purchased an oil field that will provide the Company with substantial growth rates in the future. As a result, daily oil production is expected to increase from 350 barrels per day to 7,200 barrels per day. The analysts at GBC Investment Research used the transaction as an opportunity to set a price target of CAD 0.46 for the share - the stock is currently trading at CAD 0.16.

Since Saturn succeeded in financing the acquisition largely with borrowed capital and the credit line is to be repaid within two years, the current situation of the share and the Company can only be seen as an opportunity. Saturn itself emphasizes that it has already hedged the production of the new oil field against price fluctuations. It is therefore highly confident that the loan can be serviced. According to analysts at GBC, in 2021, Saturn should make sales of CAD 146 million and shine with an EBIT margin of 53.21%. The cash flow generated could also allow Saturn to grow organically - in the past, the team has already proven to understand its business in this area. Because Saturn Oil & Gas is currently valued lower than Russian oil producers at a time of greatest political tension and falling oil prices, investors with a sense of substance should look closer at the Company. Because Saturn Oil & Gas is also pursuing a sustainability approach and oil will continue to be needed in the coming years, the Company appears to be a promising opportunity.

Transformation at all levels

Saturn Oil & Gas plans to meet its operational transformation in other ways as well: In the form of a reverse split, the Company intends to reduce its share count and end its existence as a penny stock this summer. When this happens, and production figures prove that the key data of the takeover are well-founded, the broad market should also recognize the potential around the share.


Author

Nico Popp

At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

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:

21. October 2021 | 10:11 CET | by Carsten Mainitz

Gazprom, Saturn Oil + Gas, TotalEnergies - Rising prices continue to create a party atmosphere

  • Oil

Europe is currently experiencing an energy crisis. Drivers are noticing it clearly at the gas pumps and users of gas heating systems in their bills. The reasons are manifold: the recovery of the economy after Corona, the curbing of coal-fired power generation for climate protection reasons, the growing hunger for energy of emerging economies and, last but not least, weather effects. In Germany, there is an additional reason: the phase-out of nuclear energy is currently causing a strong expansion of gas-fired power generation to secure the baseload. The beneficiaries of this development are the oil and gas producers - and thus their investors.

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06. October 2021 | 12:56 CET | by Stefan Feulner

BYD, Saturn Oil + Gas, Royal Dutch Shell - Explosion on the oil market

  • Oil

The Organization of Petroleum Exporting Countries OPEC and its alliance partners led by Russia (OPEC+) have decided to increase production only gradually, despite tight supply. Demand is recovering strongly as the Delta variant of the coronavirus subsides. The result is skyrocketing oil prices, which are the highest they have been in seven years. In contrast, oil producer shares are still far from their highs.

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28. September 2021 | 13:31 CET | by Fabian Lorenz

Nel, JinkoSolar, Saturn Oil + Gas: It looks good!

  • Oil

Shares from the solar, hydrogen and oil sectors are in demand again. And the chances are good that it will continue. The federal elections are creating a good mood for solar and hydrogen; whether it is a traffic light or Jamaica, the new government will be greener. So good news for Nel and JinkoSolar. Both have also reported positive news. But oil stocks could also be in for a hot fall. That is because little work is being done on new projects, and demand will remain high for decades to come. So oil could become scarce despite the trend toward clean energy, according to one expert. Saturn Oil & Gas should benefit from this. The Canadians just bought huge oil reserves at a bargain price.

Read