Menu

Recent Interviews

Lewis Black, CEO, Almonty Industries

Lewis Black
CEO | Almonty Industries
100 King Street West, M5X 1C7 Toronto (CAN)

info@almonty.com

+1 (647) 438-9766

Interview with mine operator Almonty Industries: "Tungsten makes e-cars better"


Nick Luksha, President, Prospect Ridge Resources

Nick Luksha
President | Prospect Ridge Resources
1288 West Cordova Street Suite 2807, V6C 3R3 Vancouver (CAN)

info@prospectridgeresources.com

Interview Prospect Ridge Resources: These fillets taste good to the market


Dirk Graszt, CEO, Clean Logistics SE

Dirk Graszt
CEO | Clean Logistics SE
Trettaustr.32, 21107 Hamburg (DE)

info@cleanlogistics.de

+49-4171-6791300

Interview Clean Logistics: Hydrogen challenge to Daimler + Co.


03. November 2021 | 12:49 CET

Royal Dutch, BP, Saturn Oil + Gas: OPEC sends oil to 100 dollars!

  • Oil
Photo credits: pixabay.com

The oil rally continues! In October, the Brent and WTI grades recorded an increase of around 10%. Market observers justified the friendly month with the good mood on the stock markets. The risk appetite returned due to the turn of the markets at the beginning of October. More volatile asset classes such as commodities benefited from this. Time and again, reference is also made to fuel reserves in China, which had recently fallen sharply. The world's second-largest economy could now buy more on the oil market to strategically replenish its reserves. Tension is rising in the oil market. Which stocks can benefit in this environment?

time to read: 4 minutes by André Will-Laudien
ISIN: ROYAL DUTCH SHELL A EO-07 | GB00B03MLX29 , BP PLC DL-_25 | GB0007980591 , Saturn Oil + Gas Inc. | CA80412L8832


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

 

Author

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


Royal Dutch Shell - Weak figures and pressure from hedge funds

In the last week of October, the A-share of Royal Dutch Shell (RDS) marked a new high for the year of EUR 21.70, but then the value went significantly downhill again. The reason was the slightly disappointing quarterly figures and the trouble with a new major investor from the hedge fund scene, who would like to split up the British-Dutch group.

The US hedge fund Third Point had recently acquired a stake worth EUR 643 million, making it one of the largest shareholders in the group. According to several media reports, Third Point is pushing for the oil and gas giant Shell to be split into two parts. One part of the Company is to continue to operate the traditional oil and gas business, but the renewable energy sector is to be spun off into a second division. The reason: Different investor interests repeatedly lead to strategic contradictions in the corporate strategy.

In the course of the current climate debate, this point cannot be dismissed entirely. Investors in RDS shares took cover for the time being and realized their lavish profits since the outbreak of the Corona Crisis, after all, by about 100%. Now oil fans are hoping for a turnaround with the upcoming OPEC date. The signs are good because the raw materials markets have been pointing upwards again for a few days. Fundamentally, the RDS share is trading at a 2022 P/E of 7.6, with a dividend yield of 4.6%. Buy in weakness!

Saturn Oil & Gas - Currently, there are many reasons to buy

The Canadian oil producer Saturn Oil & Gas from Saskatchewan is currently in very good shape. The WTI oil price has stabilized well above the USD 80 mark, which brings a lot of calm to Saturn's operating business. Far removed from the major political issues surrounding black gold, what is crucial for Saturn is its performance in its properties.

An important step in the share structure has now been taken in the past month of October. It is a consolidation of the shares in a ratio of 20:1, a so-called reverse split or rollback. In this context, the number of shares in circulation is reduced by a factor of 20. At the same time, the attributable price increases by the same ratio. As a result, the new Saturn share is now trading at over CAD 4.10, corresponding to an old share price of more than CAD 0.20. That is a strong performance of an even 100% since the acquisition of the Oxbow oil fields.

Saturn Oil is now producing about 6700 barrels of WTI in its new setup with revenues of CAD 520,000 per day. As a result, it will be relatively easy for the Company to pay off debt from the acquisition. According to current plans, Saturn will be debt-free in mid-2023 because, assuming a constant oil price over the next 18 months, it will flush a free cash flow of over CAD 260,000 into the books every day.

A strong buy argument for the stock, however, is its new unit size. Institutional investors find it challenging to invest in penny stocks; they need nominal share prices of over a dollar in addition to a capitalization of over CAD 100 million. However, this is now guaranteed - the current high turnover documents the increasing interest from large investors. If one now puts on the analytical glasses, one recognizes a complete deleveraging and a free cash flow valuation of about 1.5 on a view of 2 years. The P/E ratio puts itself on a cautious view at about 2 - to find a more favorable oil value on the price list should be very difficult.

British Petroleum (BP) - Good figures and a share buyback

Oil major BP has seen its quarterly profit well triple on the back of exceptional gas marketing, much higher oil prices and refining margins. Adjusted profit at replacement cost was USD 3.32 billion for the third quarter, a significant increase from USD 86 million for the same period in 2020. The increase is so dramatic because, in the wake of the Corona Crisis, oil prices had fallen as low as USD 35 in mid-2020. Oil demand has been rising strongly again in many countries since the falling Corona restrictions. Because the free cash flow has developed lushly upwards to a reasonable USD 6 billion, the Company now wants to put another billion amount into the share buyback.

However, BP recorded a special write-down due to outdated gas supply contracts and hedging transactions due to the rapid rise in gas prices. BP lost a handsome USD 6.1 billion before taxes in the derivatives sector, while the net loss attributable to shareholders still amounted to USD 2.5 billion after taxes. Officials said that the current disparity should subside again when spot prices for gas fall again and the planned volumes can be delivered. BP stands at EUR 4.10, around 7% below its 12-month high of EUR 4.40. Over the year, the oil and gas multinational is up 75%. Our multiple entry recommendations have worked out very well. Now hedge your holdings in BP shares with a raised stop at EUR 3.87 in the medium term.


Today, the investment in oil stocks is against the background of public efforts to achieve a phase-out of fossil energy. Currently, however, energy demand is going through the roof, and it does not look as if the demand side will weaken in the short term. Royal Dutch and BP are subject to many market volatilities. At the same time, the still small Saturn Oil & Gas from Canada can run a quiet and highly profitable business in the slipstream of the oil multinationals.


Author

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



Conflict of interest & risk note

In accordance with §34b WpHG we would like to point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH may hold long or short positions in the aforementioned companies and that there may therefore be a conflict of interest. Apaton Finance GmbH may have a paid contractual relationship with the company, which is reported on in the context of the Apaton Finance GmbH Internet offer as well as in the social media, on partner sites or in e-mail messages. Further details can be found in our Conflict of Interest & Risk Disclosure.


Related comments:

16. November 2021 | 12:58 CET | by Stefan Feulner

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

  • Oil

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.

Read

09. November 2021 | 13:17 CET | by Fabian Lorenz

Nordex, Gazprom, Saturn Oil + Gas: Rising oil and gas price drive

  • Oil

Leading politicians and industry leaders are meeting in Glasgow until November 12 for the climate conference. So far, however, there has been nothing more than "hot air" to report. Not only climate activists are disappointed. Even German Development Minister Gerd Müller criticized the interim results. "The emerging resolutions are not enough to achieve the 1.5-degree target," the CSU politician told Redaktionsnetzwerk Deutschland. There is also little news on the expansion of renewable energies. It is therefore not surprising that the oil price is picking up again. With a rise to USD 83.78, the price for the Brent variety has ended the correction. There is also no relief in sight for the price of gas. The shares of Gazprom and Saturn Oil & Gas are benefiting from this. But Nordex is also attracting attention with new orders.

Read

08. November 2021 | 11:28 CET | by Stefan Feulner

Deutsche Rohstoff, Saturn Oil + Gas, BP - Rise to hysteria

  • Oil

Energy prices in Germany continue to rise, driving inflation beyond the 4% mark. Heating oil alone increased in price by around 80% within a year. However, there is no end in sight to the rise. The supply bottleneck and immense demand are likely to push oil prices above the psychological USD 100 mark in the next few years. Analysts at JPMorgan even see a new supercycle approaching the world and renewed their forecast to an oil price of USD 190 in 2025.

Read