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Andrew Davidson, CEO, Royal Helium Limited

Andrew Davidson
CEO | Royal Helium Limited
224, 4th Avenue South, S7K 5M5 Saskatoon (CAN)

davidson@royalheliumltd.com

+1 (306) 281-9104

Royal Helium CEO Andrew Davidson on NASA, SpaceX and the path to dynamic growth


Craig Taylor, CEO, Defense Metals

Craig Taylor
CEO | Defense Metals
605-815 Hornby St., V6Z 1T9 Vancouver (CAN)

craig@defensemetals.com

+1 (778) 994 8072

Milestones, ESG as an USP and the new openness of policy toward rare earths outside China - Defense Metals provides backgrounds


Alex Kent, Managing Director, Aspermont Limited

Alex Kent
Managing Director | Aspermont Limited
613 - 619 Wellington Street, WA, 6000 Perth (AUS)

Corporate@aspermont.com

+61 8 6263 9100

Aspermont shows the success of digitalization - Alex Kent has an agenda


19. January 2021 | 09:01 CET

Gazprom, Saturn Oil & Gas, Exxon Mobil: The cards are being reshuffled in the oil sector

  • Energy
Photo credits: pixabay.com

The oil price reflects the state of the real economy. After the first Corona lockdowns last spring caused the prices to plummet - ultimately bringing economic activity to a complete standstill - oil has now stabilized significantly. Since the beginning of November, Brent crude has gained around 50%. In the wake of the futures exchanges, the shares of production companies have also performed well. But here, too, there is light and shade - we look at three stocks between dull and highly speculative.

time to read: 3 minutes by Nico Popp


Craig Taylor, CEO, Defense Metals
"[...] Recovery rates of more than 90% rare earths are another piece of the puzzle on the way to the economic viability of our project. [...]" Craig Taylor, CEO, Defense Metals

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


Gazprom: Nord Stream 2 and no end in sight

If you look at Gazprom's share price over a one-year period, it still shows a loss of around 25%. But that is only half the truth. During the past three months, Gazprom shares achieved a return of almost 50% and followed the rally in the oil price almost one-to-one.

Gazprom is a solid Company, which was demonstrated during the pandemic's peak phase last year. Although the oil business came to a standstill, the gas division remained comparatively robust. Despite lower sales, the selling price even increased slightly. In recent months, the oil business has returned to normal and Gazprom is seen as a promising Company once again.

Russian oil producers have always had a reputation for paying high dividends. Gazprom is no different. While the recent rise in the share price has made the old record highs a bit of a distant memory, the stock still offers a dividend yield of more than 6%. Even though there has been some back and forth about the Nord Stream 2 pipeline in recent weeks and months, the conflict seems to have calmed down on a geopolitical level.

Most recently, however, environmentalists filed an appeal against the construction permit. What the future holds for the share remains to be seen. While Gazprom is also well positioned to sell its energy sources to Asia, the conflict surrounding Nord Stream 2 could continue to weigh on the share price.

Saturn Oil & Gas: What is management pulling out of the hat?

The small Canadian oil producer Saturn Oil & Gas's share price also came under pressure a little less than a year ago. The Company had grown organically in the previous years and had slowly but surely become the most profitable oil producer in Canada. But then came the pandemic and the collapse in oil prices. The Company decided that instead of tapping oil wells, it would be better to search for acquisition targets. Simultaneously, it announced that it had hedged significant parts of its production against fluctuations in the oil price. So even though oil went into a dive, Saturn has been achieving a price of CAD 65.30 for 400 barrels a day since February 2020. CEO John Jeffrey proclaimed that being able to respond appropriately to changes in the market was key to the Company.

In the meantime, the hedging deal, which closed for 1 year, is about to end. Investors are wondering what the future holds for the Company. Looking at some of the Company's publications over the past few months, you will notice, on the one hand, the clear commitment to sustainable oil production and, on the other hand, Jean-Pierre Colin. He has been a consultant to Saturn Oil & Gas since November. Colin is a specialist in all aspects of financing takeovers in the energy sector and has accompanied several of these transactions himself.

If Saturn Oil & Gas wants to live up to its announcements, details of the announced inorganic growth strategy should be announced in the coming weeks. The share price has recently been cautiously moving upwards. The share is interesting also against the backdrop of the impending return to normality after the pandemic.

Exxon: Top dividend, dull stock

While for Companies like Saturn Oil & Gas, where any corporate news can completely change the business model, the situation is different for industry heavyweights like Exxon. While Exxon's stock has produced a 35% return over the past three months, it also has an equally large loss on the price sheet over a one-year period. Exxon does about a third of its business in the United States. There, President-elect Joe Biden may have just declared a "green wave," but industry experts stress that the traditional energy business will continue to be an important one.

Exxon may not be the darling of all sustainably-minded investors, but the Company has raised its profile in this area. Also, Exxon offers a high dividend of more than 7%, making it a solid value. Beyond the EUR 47 mark, the share price could pick up speed again. With stocks like Gazprom or Exxon, conservative investors, in particular, are well served. However, Saturn Oil & Gas offers significantly higher leverage on the oil price and, above all, some potential for surprises.At current oil prices, the Company is profitable even with its existing production facilities. Also, there is the fantasy of possible takeovers. The Company is currently valued at around EUR 18 million.


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:

02. February 2021 | 10:30 CET | by Stefan Feulner

Nikola, Saturn Oil & Gas, Exxon Mobil - Caution, risk of explosion!

  • Energy

Stocks can rise for a variety of reasons. As we saw last week, a group of primarily younger investment community members can sometimes shoot up a company's value several hundred percent, as was seen in GameStop. There are of course other reasons that are understandable and justified on a fundamental level. In contrast to the "Reddit shares," the newly achieved price level should be maintained here.

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04. January 2021 | 09:07 CET | by Carsten Mainitz

BP, Saturn Oil & Gas, OMV - Sector rotation for investment success in 2021!

  • Energy

Technology stocks were among the darlings of investors in 2020. However, in the meantime, company valuations in this sector have soared to dizzying heights reminiscent of the Neuer Markt boom. Thus, it could be very worthwhile to take a look at the losers of the past year. Oil stocks posted red signs in the face of a 22% drop in the commodity price. But now the situation should change. Leading economic research institutes are forecasting global economic growth of over 4% in the new year. The oil price should also continue to rise, Goldman Sachs even sees upside potential of 30%. We show you which stocks will help you profit.

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17. December 2020 | 09:46 CET | by André Will-Laudien

Saturn Oil & Gas, BP, Royal Dutch Shell: Now the right oil stock!

  • Energy

The stock market is like a pendulum that swings back and forth. The year 2020 was undoubtedly the year of electromobility - just one look at Tesla with its USD 600 billion capitalization is enough - and a year for the "hype topic" hydrogen, which though still needs at least 3 years of research and development for series production. Both are much-discussed alternatives to oil and other fossil fuels. Unfortunately, this comparison is somewhat misleading, as significant amounts of oil and coal are still used to generate both electricity and hydrogen. The drivers of electric vehicles like to pat themselves on the back because of their political compensation. Still, there is now a consensus in the research community that electric propulsion systems on a broad scale can in no way be described as a solution for sustainable economic activity. On the government side, of course, there are great tax incentives that probably reflect the intrinsic motivation of the e-belief community to a huge extent. However, if the battery goes on strike in the winter, fortunately, you still have the V8 in the private garage.

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