November 4th, 2024 | 07:00 CET
Exxon, F3 Uranium and JinkoSolar with tailwinds
The past trading week was marked by high volatility as the tech giants released their third-quarter results. Given the still unresolved election in the United States, it is unlikely that the volatility will subside soon. Investors should, therefore, prepare themselves for another rollercoaster ride on the markets until a final election result is confirmed.
time to read: 3 minutes
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Author:
Stefan Feulner
ISIN:
EXXON MOBIL CORP. | US30231G1022 , F3 URANIUM CORP | CA30336Y1079 , JINKOSOLAR ADR/4 DL-00002 | US47759T1007
Table of contents:
"[...] 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.
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Exxon Mobil – Trump victory as a catalyst
Donald Trump has emphasized on numerous occasions in the past that he is a strong supporter of fossil fuels. The presidential candidate views climate change as a minor problem. Instead, he promised the oil industry that, if elected, he would allow drilling in the Gulf of Mexico and in protected areas such as the Arctic.
Given his support for fossil fuels, Exxon Mobil's management would likely welcome another Trump presidency. The recently published figures for the third quarter show that business is going well without the controversial candidate, which exceeded analysts' forecasts. Exxon reported net income of USD 8.61 billion, or USD 1.92 per share, for the quarter, down 5% from a year earlier. This decline in earnings was due to lower refining margins and falling natural gas prices compared to the peaks of 2023. Nevertheless, the result exceeded analysts' estimates, who had expected only USD 1.88 per share.
The energy company distributed USD 9.8 billion in dividends to its shareholders during the quarter and increased its quarterly dividend to USD 0.99 per share. Exxon's daily production of 3.2 million barrels was the highest level in more than four decades.
If Exxon is granted the first right of refusal on Hess's rich oil reserves in Guyana, this could further increase production, which in turn could impact Chevron's planned acquisition of Hess.
F3 Uranium - Growing uranium demand drives exploration
With the increasing focus on clean energy sources, North America is experiencing an increase in demand for uranium, a key raw material for nuclear energy production. This demand has brought to the fore the exploration and development of new uranium deposits, particularly in the high-grade uranium region of the Athabasca Basin in Canada.
F3 Uranium, formed in October 2013 as a spin-out from Fission Uranium, is now a leading uranium exploration company. Based in Kelowna, British Columbia, F3 is focused on discovering and developing high-grade uranium deposits in the Athabasca Basin, known for hosting the world's largest and highest-grade uranium discoveries. The Company's key projects include the PLN property in the western Athabasca basin, adjacent to significant discoveries such as Triple R and Arrow.
F3 Uranium reported outstanding results from its ongoing 2024 drill program at the PLN property. The highlight was drill hole PLN24-161 in the JR zone, which intersected 10.5 m grading 2.66% uranium oxide, including a 2.0 m interval with an impressive average grade of 12.0% uranium oxide. Significant mineralization was also encountered in hole PLN24-184 over a 13.5 m interval of exceptionally high radioactivity.
To finance growth and further exploration, F3 Uranium has completed a capital increase in which a total of 20,000,000 flow-through units were sold at a blended price of CAD 0.40 per unit and total proceeds of CAD 8 million. F3 Uranium's market capitalization is CAD 123 million, with a current stock price of CAD 0.25.
JinkoSolar – Rollercoaster ride continues
The stock of the Chinese solar module manufacturer has been subject to extremely high volatility in recent weeks, but the trend has been clearly pointing upward since the year's low at the beginning of September. After the stock more than doubled from USD 16.70 to USD 37.36 on the back of the announced economic stimulus package, a sharp correction below the USD 20 mark set in, although this distinct support level was successfully defended.
Following the announcement of the third-quarter figures, the JinkoSolar share is currently trading at USD 28, with increasing volume. The global market leader beat analysts' estimates, which had predicted a loss of USD 0.80 per share, with a profit of USD 0.02 per share.
Sales reached USD 3.42 billion, which is above estimates of USD 3.19 billion, although down 23% year-on-year. The gross margin fell year-on-year to 15.7% but showed a significant increase compared to the previous quarter. The delivery volume rose to 25.91 GW, an increase of 14.7% over the previous year.
For the fourth quarter, JinkoSolar forecasts module deliveries of between 22.3 and 32.3 GW. Experts expect revenues to increase to USD 4.32 billion and earnings to reach USD 0.10 per share.
A victory for Donald Trump could boost oil companies such as Exxon Mobil in the long term. JinkoSolar exceeded analysts' forecasts. F3 Uranium reported outstanding drilling results and secured CAD 8 million in growth financing.
Conflict of interest
Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.
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