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April 6th, 2020 | 08:40 CEST

NEL ASA, Saturn Oil & Gas, Varta - who has the highest catch-up potential?

  • Energy
Photo credits: pixabay.com

The share prices of most companies around the world have been falling since February 2020 and the outbreak of the Corona Pandemic. Whether it's hydrogen, oil or batteries, it's hit everyone. The reasons are very different, but they are nevertheless interrelated. Globalization not only has price advantages, but dependencies on supply chains can lead to painful bottlenecks. The current situation is most obvious in the example of protective clothing, which is mainly produced in China and is also needed there in the country of origin of Covid-19. The rest of the world is now facing supply bottlenecks.

time to read: 2 minutes | Author: Mario Hose
ISIN: NO0010081235 , CA80412L1076 , DE000A0TGJ55

Table of contents:


    Hedging brings safe income

    The Canadian oil producer Saturn Oil & Gas was launched around three years ago as the result of a restructuring process and has been a success story ever since. The management has now drilled more than 30 wells in Saskatchewan in the Viking Formation. In the first nine months of 2019, the company produced oil from the sandstone layer with a value of over 13.8 million CAD and generated an EBITDAX of 9.6 million CAD.

    According to the latest information, the audited financial statements for 2019 will be published by the end of the month at the latest. Management had hedged 400 barrels per day at a price of CAD 65.00 per barrel until February 2021 before the oil market collapsed.

    Oil price rally has potential

    In the coming days, the oil market is expected to continue its recovery. There are two main reasons for this: Firstly, nobody in and outside OPEC can afford to produce below USD 50 per barrel in the long term for various reasons and a concerted cutback in production will send a signal. Secondly, the future is being traded on the stock markets, i.e. the period after Covid-19. A global economic recovery and coupled with bailout measures will increase the demand for the black gold again.

    Saturn's share was traded at CAD 0.15 in February 2020 and started the weekend at CAD 0.09 on Friday - this corresponds to a market value of around CAD 21 million. About 18 months ago, the market capitalization was still over CAD 60 million. The company recently announced that it intends to grow through acquisitions and to take a front-running role in environmental protection.

    Expectations for energy transition decline

    The company NEL ASA is one of the beacons of the European hydrogen industry. As a developer and manufacturer of plants for the production and distribution of the energy carrier, the company is an essential part of the hydrogen ecosystem. In connection with the development of an infrastructure for modern mobility and hydrogen as an energy storage medium, the company is considered to have high growth potential worldwide. However, NEL ASA's share price has also declined from over EUR 1.40 to less than EUR 0.88 since February 2020. It is currently uncertain what significance the energy transition in mobility will have in the near future.

    Recession poses a threat to sales

    The shares of battery expert Varta have fallen since February 2020 from over EUR 87 to EUR 58.40. The company operates as a supplier for other technology companies and for that reason, a recession with the accompanying decline in demand for technical products is correspondingly negative for sales development. For this company, too, it is currently unclear what influence the future subsidy policy of the countries will have. The priority of the policy is currently focused on securing the economic existence of the general public.


    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.

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    Der Autor

    Mario Hose

    Born and raised in Hannover, Lower Saxony follows social and economic developments around the globe. As a passionate entrepreneur and columnist he explains and compares the most diverse business models as well as markets for interested stock traders.

    About the author



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