Close menu

June 17th, 2021 | 12:54 CEST

Nel ASA, Plug Power, Deutsche Rohstoff AG: Oil explosion or hydrogen hype?

  • Oil
Photo credits:

Brent prices are going through the roof! The stock markets have to digest their COVID trauma, and China is hoarding oil and other commodities to satisfy the upcoming boom. Many consumers worldwide are waiting for the delivery of their long-ordered products. Problem: Shortages of raw materials and chips are causing massive delivery delays around the globe. Then there were events like the blockade of the Suez Canal or the restrictive stance of OPEC. One would like to keep prices high; at least the Federal Reserve recently sounded the alarm: 5% inflation in a monthly rate! Warning shot or starting trend?

time to read: 4 minutes | Author: André Will-Laudien
ISIN: NO0010081235 , US72919P2020 , DE000A0XYG76

Table of contents:

    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview


    Nel ASA - Still not in step

    Gradually, a certain uncertainty is spreading in the hydrogen technology company segment. For just as Joe Biden announced his new billion-dollar funding for climate and future technologies, oil shot through the roof and all hydrogen stocks plunged downward in unison. Accompanying the rise in energy prices, of course, was an ongoing shortage and rise in the price of commodities in general.

    Nel ASA is a company founded in 1927. It installed its first electrolyzer in a Norsk Hydro factory in Notodden, Norway, in the same year. It was started with the aim of reducing dependence on fossil fuels. The Company has also included Danish hydrogen fueling station manufacturer H2 Logic since 2015 and US electrolysis specialist Proton OnSite since 2017. Together with the companies PowerCell Sweden and Hexagon Composites, Nel founded the joint venture Hyon in September 2017, aiming to establish fuel cell-powered vehicles, particularly in the maritime sector.

    Nel's share price was the clear crowd favorite for alternative H2 technology between the summer of 2019 and the beginning of 2021; however, the share price plummeted from EUR 3.4 to EUR 1.6 since February 2021. With a price of EUR 1.75, the share is still not in step. Analytically the valuation is unfortunately still beyond good and bad due to low sales and a factor of over 50. However, this does not have to be a reason to sell in our bubble times.

    Plug Power - Many cooperations, little share price success

    In the technological application of hydrogen, every apparatus first needs a specific energy input to produce electrolytic hydrogen. This energy is obtained naturally in the latest processes, i.e. without the use of fossil fuels. Plug Power is already well advanced with its technology, some energy aggregates are already finding good application fields, and the cooperations are becoming broader.

    At the beginning of 2021, Plug Power already announced significant cooperation with the French car Company, Renault. Now the establishment of the joint venture has become a reality. It is called Hyvia and will be owned equally by Plug Power and Renault. Until now, hydrogen has been seen primarily as a solution for heavy-duty transport, but Renault and Plug Power are now explicitly targeting everyday vehicles with their joint venture. They cite the hydrogen cars' long-range and short refueling time as advantages, as it only takes 5 minutes to refuel for a range of 500km.

    Renault is pursuing a two-pronged strategy with electric and hydrogen cars. By 2030, the group aims to capture a 30% market share in Europe for light hydrogen commercial vehicles. In addition to the fuel cells, Plug Power will also ensure the development of hydrogen filling stations and their supply via the joint venture.

    The PlugPower share has found it very difficult to regain lost ground since the balance sheet discrepancies and the 75% crash on the chart. Recently, the breakout above USD 35 also failed. Wait and see and set a stop at USD 26.50.

    Deutsche Rohstoff AG - Robust oil production and tactical investments

    It was a shock in March 2020 when WTI oil price subsequently plummeted to USD 12 per barrel. No one knew at the time how deep the economic hole caused by COVID-19 would actually be. However, Thomas Gutschlag, the CEO of Deutsche Rohstoff AG, showed nerves of steel. He cut production and dramatically reduced exploration costs, thus cushioning the operational super-damage. Even better, he proved to have a good investment hand and took stakes in stumbling competitors, thus achieving a handsome profit in the asset management sector. Well done!

    In June, Texas light oil (WTI) climbed back above the USD 70 mark, and all seems well again. Business is now booming again as China and the USA, in particular, are dramatically turning the tide of their economies around. They are doing this with substantial monetary expansions and regional stimulus programs. As a result, this is pushing up inflation and thus commodity prices, especially oil and industrial metals. Coupled with the increased volatility in oil prices, this means DRAG's current Knight and Wyoming assets have significant option value on the timeline.

    In the first quarter alone, Deutsche Rohstoff AG produced 37% of its 2021 oil forecast and at a moderate cost. However, the Mannheim-based Company is also active with tungsten and molybdenum in South Korea through its stake in Almonty Industries. The Sandong mine is one of the few tungsten production sites outside of China. Financial closing for the project is expected in June. An offtake agreement with a 15-year price guarantee has also been negotiated.

    Deutsche Rohstoff AG will be able to connect additional drilling sites this year and, in all probability, will produce 6,000 barrels of oil equivalent per day, significantly more than last year. Due to the good situation, the DRAG share price is moving steadily and quietly upwards. It fell below the EUR 11 mark in the first quarter, but last week it already went beyond EUR 16. Now a market capitalization of more than EUR 80 million has been reached again; the only one who is sad is the one who had watched below EUR 10 for too long. The zone of EUR 18-20 would be our next target line for the summer.

    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.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on 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.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    André Will-Laudien

    Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.

    About the author

    Related comments:

    Commented by Armin Schulz on September 27th, 2023 | 09:05 CEST

    Nikola, Saturn Oil + Gas, BASF - A Buy in difficult times?

    • Mining
    • Oil
    • Batteries
    • renewableenergies
    • chemicals

    These are challenging times on the stock market. Central banks have not announced the end of interest rate hikes, which is poison for growth companies. In addition, extreme weather conditions are affecting the production of some companies, and there are geopolitical tensions to consider, including the ongoing Ukraine conflict and the simmering dispute between the US and China. Recently, there have also been tensions between China and Germany. Following critical statements by Foreign Minister Baerbock to China's Xi Jinping, the German ambassador was summoned. Energy shortages are becoming increasingly significant for many companies in Germany. Today, we look at three companies suffering from the problems described.


    Commented by Stefan Feulner on September 25th, 2023 | 08:10 CEST

    Shell, Hard Value Fund, Rheinmetall - All for performance!

    • Oil
    • Sustainability
    • armaments

    Sustainability is a significant and important topic. Due to recent developments, it is often associated with the environmental and social sustainability of financial products. However, investing purely based on these two criteria can cost investors dearly. For example, global leaders in the hydrogen sector, such as Plug Power, lost around 90% of their value within two years, while wind turbine manufacturer Nordex experienced a peak decline of around 70%. In contrast, fossil fuel producers such as Shell, BP and Exxon enjoyed a boom and were able to multiply their share prices over the same period. Whether investments should, therefore, be made exclusively in ESG-compliant stocks is more than questionable from a return point of view because many companies do not yet offer one thing: financial sustainability.


    Commented by André Will-Laudien on September 22nd, 2023 | 07:20 CEST

    Recalculation! These are the bare figures: TUI, Saturn Oil + Gas, Deutsche Bank - Buy prices non-stop!

    • Mining
    • Oil
    • travel
    • Investments
    • Banking

    Companies do not always have good figures in their baggage. Analysts listen very carefully to the words of those in charge. Often, it is only a minor sentence that changes entire valuations. TUI is slowly approaching pre-COVID figures. Saturn Oil & Gas must backtrack slightly because of substantial forest fires in Alberta, and Deutsche Bank aims to finalize the Postbank project in 2023. All three stocks offer good buying opportunities because the long-term prospects are quite convincing.