July 9th, 2021 | 11:27 CEST
Nel ASA, Deutsche Rohstoff AG, Royal Dutch Shell - Flexibility pays off
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.
Deutsche Rohstoff AG - Strong performance
The pumps are running at full speed, and profits are gushing more than expected. Deutsche Rohstoff AG shone last year during the oil crash due to the outbreak of the Corona pandemic with its flexible investment policy, which continues to pay off in cash. When the preliminary figures were announced, the Mannheim-based Company reported a consolidated net profit of EUR 17.5 million. Sales amounted to EUR 38.3 million, EBITDA was EUR 39.9 million, compared to EUR 15.8 million in the same period of the previous year.
As a result of the first half-year being far above the plan, the forecasts for sales and EBITDA for the full years 2021 and 2022 have been revised significantly upwards. The team around CEO Dr. Thomas Gutschlag had initially planned a sales range between EUR 57 million and EUR 62 million. Now they are aiming for revenues of between EUR 68 million and EUR 73 million, and in 2022 it could even be as high as EUR 75 million. On the EBITDA side, between EUR 42 million and EUR 47 million were planned, now Deutsche Rohstoff AG is aiming for EUR 57 million to EUR 62 million. In 2022, it could be up to EUR 52 million in the best-case scenario.
The Company's main focus, oil and gas production in the US, was already running at 1,210,000 BOE at the end of May, about 16% above forecasts. At the Knight well site, everything is going according to plan so that the deadline to start production in the fourth quarter remains in place. In addition, the securities portfolio, which was significantly expanded with oil and gas and gold stocks at the time of the Corona Crash, continues to deliver positive returns. In the months from April to June alone, gains of EUR 3.0 million were realized here, with EUR 6.4 million remaining on the unrealized profit side.
In addition to the securities portfolio, there is another "hidden reserve" in fixed assets. Deutsche Rohstoff holds a 12.8% stake in Almonty Industries. The Company is building the world's largest tungsten mine in South Korea and is responsible for 50% of the world's tungsten supply outside China at full production. The groundbreaking ceremony was held at the end of May, and the financial closing is expected soon. An off-take agreement for tungsten concentrates has been concluded with the Austrian Plansee Group for 15 years.
In recent months, the management of Deutsche Rohstoff AG has demonstrated both its many years of expertise and its flexibility in making trading decisions. With a bulging treasury - the sum of cash, short-term receivables and securities held as fixed and current assets rose to around EUR 70 million at the end of May - further acquisition targets are now being identified. The investment focus here is likely to be on critical metals related to the booming topic of electromobility, such as copper and lithium. Deutsche Rohstoff AG's journey is not over yet!
Royal Dutch Shell - Transformation underway
At the latest, the court order from The Hague is forcing Europe's largest oil company to rethink. According to the court, Shell is required to halve its greenhouse gas emissions by 2030. Before the ruling, the British-Dutch oil giant planned to focus its future on sustainable electricity, biofuels and hydrogen. It has become known that Shell wants to cooperate more closely with Uniper in producing and using hydrogen.
One of the key points here is to create the necessary infrastructure for the large-volume transport of hydrogen from Rotterdam and Wilhelmshaven to North Rhine-Westphalia (NRW). The core of the cooperation is also to be the former Rhineland refinery. Shell is transforming this into a chemical and energy park. A 10 MW PEM electrolyzer for the production of green hydrogen, was already started up there last week. The capacity is to be expanded to 100 MW with the help of partners.
Nel ASA - Important mark
After breaking out of the sideways trend at EUR 1.80, which has been running for months, the shares of the Norwegian hydrogen specialist Nel ASA prepared to leave the EUR 2 mark behind and break through the critical 200-day line. However, this attempt failed miserably on the first try. Falling below the now strong support at EUR 1.80 would mean another test of the annual low in the area around EUR 1.60. A buy signal would be given again when the price breaks above the EUR 2 mark.
Even though the future undoubtedly belongs to renewable energies, the demand for fossil fuels such as oil and gas will still be present for a long time. Like Deutsche Rohstoff AG, those companies who can react flexibly will be among the winners. Oil giants are facing a massive transformation, the destination of which is not yet foreseeable.
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.