dynaCERT, BASF, Daimler Truck AG: Investors pounce on logistics stocks, new opportunities and profit potentials

dynaCERT supports Guyana in CO₂ reduction through HydraGEN™ technology

dynaCERT is developing a patented technology that generates hydrogen and oxygen on demand and delivers these gases through the air intake system, thus improving combustion and reducing carbon emissions. The technology is versatile and can be used in various types and sizes of diesel engines, including on-road vehicles, refrigerated trailers, construction equipment, power generation equipment, and mining and forestry machinery.

Now CEO Jim Payne has a logistics company in Guyana for the HydraGEN™ technology developed by dynaCERT. The Company has ordered 93 units. HydraGEN™ is a mobile, safe and reliable retrofit solution that produces hydrogen and oxygen on-demand, designed specifically for use in on-road vehicles with Class 6-8 engines.

To date, dynaCERT has shipped two HydraGEN™ units to Guyana for the time being, as it is still waiting for information from the buyer that is required for the final packaging and shipping of the units. Once this information is received, the outstanding units will begin their journey to South America.

The government of Guyana is already actively reducing CO₂ emissions. dynaCERT's technology will support the country in enabling its ambitious goal of a further 70% reduction in carbon dioxide by the year 2030. CEO Jim Payne emphasizes, "As a Canadian company operating internationally, we respect the challenges of global climate change and support Guyana's climate goals. We are committed to a better, sustainable future, with no exceptions for our Guyanese customers."

BASF calls for political support for Germany as a business location

BASF has cut its capital spending budget for this year to preserve cash amid a global downturn. CFO Dirk Elvermann, in a media briefing following the release of Q2/23 results, stressed the necessity of maintaining strict discipline on capital spending and raw material inventory reductions. The capital expenditures for this year will be reduced to EUR 5.7 billion, down from the previously planned EUR 6.3 billion.

Plastics group Covestro also saw weak demand in Q2/23 and is now somewhat more cautious for the rest of the fiscal year. Covestro AG is a German company that produces raw materials for polyurethane and polycarbonate. It was formed in the fall of 2015 as a spin-off of Bayer AG and was previously called Bayer MaterialScience.

The Company reiterated its operating profit forecast of EUR 1.1 billion to EUR 1.6 billion, which it raised in April. However, given an expected economic slowdown later in the year, Covestro is more likely to expect earnings in the lower half of this range. CFO Thomas Toepfer stated that they currently do not expect an economic recovery for the remainder of the year.

Possible takeover rumors of Covestro AG have caught the attention of Martin Brudermüller, CEO of BASF AG. He says the possible takeover highlights the challenges facing European chemical companies like BASF. He stresses the need to get support from lawmakers to be more competitive and overcome stock market difficulties.

At the same time, Brudermüller urges politicians to take note of the situation without further elaborating on reports that Abu Dhabi National Oil Co has been mentioned as a potential suitor.

Daimler Truck: Share buyback program launched, high profit expected

The Board of Management of Daimler Truck Holding AG has implemented a share buyback program. The program will start on August 2, 2023, and end on August 1, 2025. Up to 82,295,188 shares may be repurchased via the stock exchange for a total price of up to EUR 2 billion. The buybacks are based on the authorization of the Annual General Meeting on November 5, 2021. The repurchased shares are to be cancelled, and the share capital reduced accordingly.

The share buyback program of Daimler Truck shares will be carried out in accordance with the authorization and the safe harbor provisions of Regulation (EU) 596/2014 in conjunction with Delegated Regulation (EU) 2016/1052.

According to the authorization, Daimler Truck may acquire treasury shares until October 31, 2026, in an amount of up to 10% of the share capital existing at the time of the authorization or, if lower, at the time of the exercise of the authorization.

A share buyback is a positive signal for shareholders and the market as a whole. It shows that the Company believes its shares are undervalued and has confidence in its future development. The buyback reduces the number of shares outstanding, which may cause the value of the remaining shares to increase. This potentially increases the share price.

The Company expects a significant increase in profit with higher sales and sales volumes. Strong selling price increases will allow the Company to more than offset rising raw material and labor costs. In the second quarter, adjusted operating profit rose 41% to EUR 1.4 billion, while revenue increased 15% and sales volumes 9%. The world market leader for heavy trucks sold almost 132,000 vehicles between April and June. Truck sales are expected to rise to as many as 550,000 for the full year, compared with 520,000 a year earlier.

dynaCERT's innovative carbon emissions reduction technology for diesel engines simultaneously provides significant fuel savings for operators. The solution can be used in road vehicles, refrigerated trailers and construction equipment to reduce CO₂ emissions. The Company has sold 93 HydraGEN™ units to a logistics company in Guyana to support the country's ambitious goal of reducing CO₂ emissions by 70% by 2030. Despite some minor business challenges on the buyer's side, dynaCERT CEO Jim Payne remains unfazed. BASF CEO Brudermüller is a bit more cautious in his growth forecast, stating that the Company does not expect a further weakening of demand for chemicals in the 2nd half of the year, but a potential recovery is approached with caution. "We expect global demand for consumer goods to grow more slowly than previously assumed," he added. Daimler Truck is also confident. Despite all the uncertainties in the global economy, management sees no signs of a downturn in the cyclical truck business so far. For the current fiscal year, they do not expect major disruptions, as seen during the COVID-19 pandemic, to occur.