High Energy Costs: Hedge with Shares in TotalEnergies, dynaCERT, and Nordex

TotalEnergies: The national champion is booming

TotalEnergies is not only France's largest oil company but also a global champion. Headquartered in the greater Paris area, the company now has a market capitalization of around EUR 159 billion, placing it among the world's ten largest publicly traded oil producers. In the first quarter, the company benefited significantly from high oil prices. Net income increased 51% to EUR 4.96 billion and revenue rose significantly, exceeding market expectations. As a result, the dividend for the first three months of 2026 was raised to EUR 0.90 per share. On an annualized basis, this corresponds to a dividend yield of more than 4%. TotalEnergies also used its booming profits to double the volume of its ongoing share buyback program to EUR 1.5 billion.

The recent resurgence of fighting in the Persian Gulf led to a rebound in the stock. It had pulled back from its annual high in the wake of the ceasefire negotiations. It appears that the markets will have to live with higher oil prices for longer, which plays into Total's hands.

From a technical analysis perspective, the stock remains in a long-term uptrend despite the correction. The recovery movement of the past few weeks has identified clear levels. Resistance levels are located about 5% above the current share price, in the range of EUR 74.50 to EUR 75.00. A sustained break above this level would pave the way for another test of the highs around EUR 81. On the downside, the main support lies between EUR 66.30 and EUR 67.00. Buying activity resumed here in July. If this level does not hold, a top formation could develop.
In a bullish scenario, the stock would break through resistance and then test its all-time high. This is especially true if oil prices continue to rise, as they have in recent days. Should a peace agreement be reached, which, admittedly, is currently unlikely, Total is likely to test the support level at EUR 66.30 quickly.

dynaCERT: The quick solution for freight forwarders

Logistics companies and freight forwarders, particularly in Europe, are operating in a challenging environment. Cost pressure from low-cost competitors is high, and this is now compounded by high energy costs due to the war in the Persian Gulf. Simply switching the fleet to electric power is not an option, as it would cost a lot of money and would not pay off for many years. Large freight forwarders often use new trucks for several years, until lease agreements expire and the vehicles have been fully depreciated. Afterward, these used trucks are often put to work for another 10 years or more at smaller companies. In the short term, therefore, it is nearly impossible to respond to the high energy costs.

But there are solutions to this challenge as well. German-Canadian company dynaCERT, for example, has developed a technology that can generate cost savings relatively quickly. Rather than replacing internal combustion engines in heavy-duty trucks, management aims to improve their performance through retrofitting. The goal is not only to reduce diesel consumption but also to make engines run cleaner and more efficiently. The company's flagship product is HydraGEN™ technology. It generates hydrogen and oxygen on board the vehicle during operation and injects the gases directly into the diesel engine's combustion process. This improves combustion efficiency, reduces fuel consumption, and lowers exhaust emissions. The patented technology is easy to install and operate. No separate hydrogen storage tank is required, only a compact unit the size of a suitcase. Customers can benefit directly from the retrofit and recoup the investment costs relatively quickly, depending on vehicle mileage.

At the IIF, President Bernd Krüper and CEO Kevin Unrath explained the company's exceptional positioning in the transportation market.

https://www.youtube.com/watch?v=hE7EHsgouoE

The global market for dynaCERT is enormous. Estimates put the number of trucks and other heavy-duty commercial vehicles with diesel engines on the road worldwide at approximately 75 million. Analysts have high hopes for the company. GBC Research has set a price target of CAD 0.75 for the stock, which is listed in Canada and Germany. This represents a potential fivefold increase, as the stock is currently trading at around CAD 0.12. From an operational perspective, market observers expect the company to turn a profit this year. A CAD 0.01 EPS target has been set. Revenue is expected to rise by a massive 75% to around CAD 21 million. The war in the Gulf, which has driven up diesel prices, should provide dynaCERT with further tailwinds over the course of the year. The stock is currently finding a bottom. At the current level, the market capitalization is approximately CAD 60 million.

Nordex: Higher Low Offers Hope

Back in July, we speculated that analysts would soon have to catch up with Nordex's share price. By early May, the stock had simply outpaced analysts' price targets. Now, however, they are updating their estimates, with some issuing notably optimistic targets. Berenberg, for example, has reiterated its "Buy" rating with a price target of EUR 57. Jefferies shares this bullish view with a EUR 58 target, while Deutsche Bank has set the highest target at EUR 61. Additional Buy recommendations were issued in June by HSBC and BNP Paribas. Only a handful of analysts remain cautious, with RBC leading the bearish camp and assigning the lowest price target of EUR 38.

Operationally, Nordex has recently impressed. As early as 2025, the company returned to profitability after several challenging years. This trend continued in the first quarter, with revenue rising by 10.6% to EUR 1.59 billion. EBITDA improved even more dramatically, rising 64.3% to EUR 130.7 million. Currently, the North German company is performing well not only in its home market but also in Turkey and Sweden. The order backlog stands at EUR 17 billion, which is nearly double the company's market capitalization. Management is targeting an EBITDA margin of 8% to 11% this year. This margin is expected to increase even further in the coming years. Nordex shares have regained some ground in recent days. From a technical analysis perspective, the fact that the stock has now marked a higher low offers cause for optimism.

With TotalEnergies, investors can hedge against persistently high oil prices. The company also offers an attractive dividend yield of more than 4%. With dynaCERT's technology, logistics companies and freight forwarders can reduce costs without immediately retiring existing fleets. Analysts are now bullish on Nordex again. More wind power also reduces dependence on oil and gas.