December 23rd, 2020 | 09:01 CET
Linde, Royal Helium, BASF - Explosive news this year?
Table of contents:
"[...] We expect the first three wells to be drilled, cased, completed and tested by the second week of March [...]" Andrew Davidson, CEO, Royal Helium Limited
The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.
LINDE PLC - UBS sees further upside potential of 20%.
Linde's core business is gases and process plants that extract or produce gases. Linde is the world market leader in industrial gases, ahead of its French competitor Air Liquide. Applications for its industrial gases include medicine (e.g. endoscopy and respiration), the food industry (cooling and freezing) and the chemical industry.
In mid-December, Linde and Saudi International Petrochemical Company announced a partnership to build a network for industrial gas projects in Saudi Arabia. The 50/50 joint venture will continue to operate existing hydrogen and synthesis gas plants. The aim is to develop new production facilities and efficient solutions for decarbonizing downstream production in industrial clusters in the Kingdom.
The top dog in the industry is valued at around EUR 110 billion at a share price of EUR 208. Even though there have been negative analyst comments recently, some experts see upside potential. UBS, for example, formulated a price target of EUR 250 and JP Morgan of USD 288. The share is a base investment in the sector.
ROYAL HELIUM LTD - the countdown is running
Royal Helium is focused on exploring and developing a 400,000-hectare helium project in southern Saskatchewan, Canada. The Company is one of Canada's largest helium leaseholders. With further project progress and rising helium prices, this offers excellent leverage for share price increases. The Company is currently moderately valued at CAD 16 million (price: CAD 0.28).
Yesterday, the Company completed a significantly oversubscribed capital increase in the volume of CAD 6.15 million at a price of CAD 0.22 per share. Following extensive exploration work, the cash inflow will now be used to drill the first series of exploration wells in a known past and current helium-producing formation.
In mid-November, Royal Helium launched a so-called scoping study. This study is the first step to determine the economic potential of the project. It will also examine whether gas streams generated by the helium production wells can be additionally monetized. The Company promised to release the results before the end of December, making this an exciting corporate phase.
BASF SE - IPO of the subsidiary in 2021
Last year, the Dax Company headquartered in Ludwigshafen, Rhineland-Palatinate, reorganized and refocused its divisions. The total of twelve business sectors were combined into six segments. The portfolio ranges from Chemicals & Materials to Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. Oil & Gas and Technical Services are no longer part of the core business.
The Group consistently sought and found a solution for the Oil & Gas sector by merging its subsidiary Wintershall, with its Hamburg-based competitor, Dea. BASF is the largest shareholder in the new Company, with a stake of around 2/3. The IPO of NewCo was initially planned for the second half of 2020, but could not be achieved.
The core business of the Ludwigshafen-based Company is chemicals. However, spin-offs also often stimulate the share prices of the parent Company and offer trading opportunities.
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 in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.
Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.
Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.
The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.