Close menu




November 16th, 2021 | 12:58 CET

Nordex, Saturn Oil + Gas, TotalEnergies - Good numbers, bad numbers

  • Oil
Photo credits: pixabay.com

While the third-quarter figures of many companies in the renewable energies sector were disappointing, oil companies were able to profit from rising oil and natural gas prices. Even though the recently concluded World Climate Conference resolved to move away from fossil fuels, experts believe that oil demand is likely to continue, if not increase, in the coming decade.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: NORDEX SE O.N. | DE000A0D6554 , Saturn Oil + Gas Inc. | CA80412L8832 , TOTALENERGIES SE | FR0000120271

Table of contents:


    Optimal timing, perfect leverage

    The timing for an acquisition could not have been better. In June, oil producer Saturn Oil & Gas secured the mighty Oxbow oil field in the southeastern province of Saskatchewan, becoming one of the leading producers in the region in one fell swoop. As described in a detailed report, the new acquisition alone increased production twenty-fold to 7,000 barrels per day. With the figures for the third quarter, the effects now became more apparent for the first time.

    In the third quarter of 2021, Saturn generated revenues of CAD 48.5 million from the sale of oil and gas, compared to CAD 2.1 million in the same period last year. Production averaged 6,970 BOE per day (96% oil and NGLs) in the period, compared to 499 BOE per day (100% oil) in the third quarter of 2020. On balance, the Company generated an adjusted cash flow of CAD 13.9 million, or CAD 0.55 per share, in the three months ended September 30, 2021, compared to CAD 1.0 million in the third quarter of 2020, or CAD 0.09 per share. Revenue and cash flow per day were able to continue more or less as they had been for the last 23 days of the previous second quarter, since the acquisition of Oxbow. A promising sign for shareholders. Management clearly has a handle on the integration.

    John Jeffrey, CEO of Saturn, commented, "The resumption of the Company's drilling program in the third quarter was an important step in continuing our growth strategy as a producer focused on light oil. The success of the Q3 2021 drilling program was accompanied by high oil prices, strong operating results and robust economic returns on invested capital. Saturn looks forward to continuing its drilling program and leveraging our extensive inventory of oil-focused drilling locations funded with internally generated cash flow." According to the release, the Company has continued increasing daily production to approximately 7,050 BOE per day.

    Pressing high costs

    Now it is final. The figures for the third quarter at wind turbine manufacturer Nordex are out and, as previously reported, they are anything but refreshing. Despite a high order backlog, the loss was significantly widened due to increased raw materials and logistics prices. Accordingly, the Hamburg-based Company increased its consolidated sales by 24.9% YOY to just under EUR 4.0 billion. However, this was offset by a loss of just under EUR 40 million, compared with just under EUR 73 million in the same period of the previous year. After the first months of the current fiscal year, the books even show a loss of EUR -104 million.

    The forecast for the year has already been cut. The Company now expects consolidated sales of between EUR 5.0 billion and EUR 5.2 billion. According to management, increased external costs for raw materials and freight and disrupted supply chains only allow for an EBITDA margin of 1%. However, in the long term, the Company wants to return to its old strength and outlines operating margins of almost an astronomical 8% from the current perspective.

    As the results were in line with the key data already published, the US investment bank Goldman Sachs reiterated its "neutral" rating with a price target of EUR 18.40. Jefferies set the Hamburg share at "buy" and left the price target at EUR 25. The analysts praised the continued solid order intake but said that profitability was suffering from higher logistics costs.

    Analysts optimistic

    The analyst community is far more optimistic about the petroleum company TotalEnergies. The major Swiss bank UBS upgraded the French Company, which recently posted strong third-quarter figures on the back of high oil and natural gas prices, from "neutral" to "buy". The price target was also raised from EUR 42 to EUR 50. Analyst Jon Rigby significantly raised his estimates for the oil price through 2025 in Monday's report. Thus, his earnings estimates for the oil company increase on average by 22%. Goldman Sachs is even more positive about the stock. With an increase in the price target to EUR 63, this is almost 30% above the current IPO.

    In addition to the strong oil and gas business, TotalEnergies intends to invest further in renewable energies in the future. Thus, an agreement was signed with Daimler Truck, according to which the two companies want to increase their commitment to the decarbonization of road freight transport in the European Union. Together, the partners intend to cooperate on implementing a hydrogen infrastructure for heavy-duty trucks and highlighting the benefits of CO2-neutral road freight transport based on hydrogen.


    While companies from the renewable energy sector are struggling with weak quarterly figures due to high commodity prices and disrupted supply chains, petroleum companies are shining with solid values. At Saturn Oil & Gas, the acquisition carried out in the middle of the year is coming into its own, and analysts see significantly higher prices at TotalEnergies.


    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 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.

    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

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



    Related comments:

    Commented by Stefan Feulner on November 27th, 2023 | 07:10 CET

    ExxonMobil, Prospera Energy, Deutsche Rohstoff AG - New opportunities in the supercycle

    • Mining
    • Oil
    • renewableenergies
    • Energy

    After a sharp rise of around 30% to an annual high of USD 95.50 for the US West Texas Intermediate, black gold entered a correction and has since lost about 20% in value. Even events like the Hamas attack on Israel and OPEC+ production cuts were unable to halt the current decline. From a technical chart perspective, this appears to be a normal correction. In the long term, oil is expected to reach new highs with the next upward movement. JP Morgan, for instance, issued an updated price target of USD 120 per barrel as recently as September.

    Read

    Commented by Juliane Zielonka on November 23rd, 2023 | 07:20 CET

    Saturn Oil + Gas, Rheinmetall, Bayer - Energy, Defense, Healthcare: Where short-term returns await

    • Mining
    • Oil
    • defense
    • Healthcare

    In Germany, the federal government put its spending on hold, a day after the Federal Constitutional Court ruled that the reallocation of EUR 60 billion of unused debt from the pandemic era to the Energy and Climate Fund was unlawful. Europe's largest economy is shrinking due to rising energy prices and trade tensions. At the same time, North America, with stable oil companies such as Saturn Oil & Gas, presents an attractive investment opportunity for investors. Rheinmetall is experiencing a target price high of EUR 370 and flirting with long-term prospects in the US. At the same time, Bayer grapples with legal challenges and the failure of the blood thinner 'asundexian'. We look at where an investment may be worthwhile now.

    Read

    Commented by André Will-Laudien on November 22nd, 2023 | 07:30 CET

    Black Week in the energy sector: Short hydrogen - Long oil! Shell, BP, Prospera Energy, and Plug Power under the microscope

    • Mining
    • Oil
    • Hydrogen
    • GreenTech
    • fossilfuels

    It sounds ambitious! To completely restructure Europe's energy supply, the European Union would need to invest a good EUR 300 billion in alternative energy sources, infrastructure and raw material supply contracts by 2030. As of 2021, Germany alone was importing 45% of its fossil fuels from Russia, which had been a valued partner until then. After the start of the war in Ukraine, this long-standing business partner was removed from the list. However, this also means that the very cheap sources are no longer accessible for Central Europe. Therefore, electricity, heating and mobility prices will remain high while public coffers are empty. Shareholders who bet on Greentech have to endure a crash in the hydrogen sector while fossil fuels are experiencing a renaissance. Where are the medium-term opportunities?

    Read