Close menu




March 11th, 2022 | 11:35 CET

Saturn Oil + Gas, BYD, Bayer - Winning with strong companies

  • Oil
  • Electromobility
Photo credits: pixabay.com

When oil futures were trading in negative territory even for a short time at the outbreak of the Corona pandemic in the spring of 2020, many experts assumed that the black gold would remain at a low level in the long term. Only JPMorgan spoke at that time of a possible supercycle and prices over USD 100 per barrel. The analysts cited the supply shortage due to the swing towards green energy production as the reason. Due to the Ukraine crisis, supply has once again been drastically reduced, which is likely to fuel oil prices in the long term.

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: Saturn Oil + Gas Inc. | CA80412L8832 , BYD CO. LTD H YC 1 | CNE100000296 , BAYER AG NA O.N. | DE000BAY0017

Table of contents:


    Saturn Oil & Gas - The producer profits twice over

    Of course, the parabolic rise in the prices of the various types of oil is grist to the mill of the dwindling number of pure oil producers. Last June, Canadian energy company Saturn Oil & Gas seized the opportunity to expand its production quotas by a factor of 20 with an acquisition, which was clearly reflected in the third quarter figures and EBITDA of CAD 17.2 million. On the occasion of the IIF Forum held in February, the Company management formulated the target of ramping up production to 8,200 barrels in the medium term.

    In mid-February, the CEO of Saturn Oil & Gas, John Jeffrey, again proved to have a good nose. With oil prices still well below USD 100, the Canadians took over other oil and gas assets for a sum of around CAD 8.3 million. The assets are located in the Plato area of west-central Saskatchewan and complement the Company's existing Viking assets. The strategic acquisition includes the production of 240 bbl/d of light oil in numerous light oil drilling locations with reduced risk.

    Most recently, the Company announced it had completed the previously announced bought deal offering and a concurrent non-brokered private placement. Under the terms of the two offerings, the Company issued shares at a price of CAD 3.00, raising gross proceeds of CAD 20,613,000 million for the Company. This will be used to fund the completed strategic acquisition. Other uses of funds include drilling and completion, working capital and general corporate purposes. Saturn is significantly undervalued compared to its peer group, with a current share price of just under CAD 3.

    BYD - Heavy sell-off

    The shares of the electric car company BYD have been severely punished in recent weeks. In addition to the sell-off due to the currently existing geopolitical risks, a personnel matter also caused great uncertainty among investors. It became known that BYD founder and president Wang Chuanfu surprisingly resigned as chairman of Hangzhou BYD Auto. Tian Chunlong will take over the position as Chairman of Hangzhou BYD Auto in the future, and Wang Bo will take over as the new director of BYD's subsidiary, the statement added. BYD explained the recent personnel changes as "streamlining the administrative process" and helping the company "carry out various businesses." However, the personnel matter would have no impact on operations or equity structure. Business development also remains intact, he said.

    On the other hand, news that the Warren Buffett-funded company plans to expand production capacity in India was positive. "India is a strategic hub for us to serve the South Asian market," said Ketsu Zhang, executive director, BYD India Private Limited. From a chart perspective, the stock is severely battered, with a price of EUR 22.56. Holding the critical support area around EUR 20 now appears to be necessary.

    Bayer - Relative strength

    In contrast to the broad overall market, Bayer shares have been crisis-resistant for weeks and could generate a new buy signal with a sustained breakout above EUR 55. Bayer CEO Werner Baumann already commented when announcing the annual figures: "We have grown significantly. We have strengthened our innovation pipeline. And we are making progress with our sustainability goals. All this shows: Bayer is on the right track!"

    The sale of the Environmental Science Professional (ESP) segment to financial investor Cinven for USD 2.6 billion has enabled the pharmaceutical and agricultural giant to fill its coffers on the one hand, while on the other hand allowing the Leverkusen-based Company to focus more strongly on its core business. The stock received a tailwind from a study by the major Swiss bank UBS, which continues to give Bayer a "buy" rating and even raised the price target from the previous EUR 85 to EUR 90.


    Due to the worsening situation in Ukraine and the sanctions against Russia, the oil price rose like a flagpole. The primary beneficiaries are oil producers such as Saturn Oil & Gas. The current situation at pharmaceutical and agricultural giant Bayer also looks promising. In contrast, the technical picture of BYD is tarnished.


    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 hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Fabian Lorenz on December 7th, 2023 | 08:40 CET

    TUI strong! BYD reacts to share price slide! First Hydrogen share price about to jump?

    • Hydrogen
    • fuelcell
    • Tourism
    • Electromobility

    TUI shares reacted to strong figures yesterday with a jump of over 10%. The tourism group also announced its intention to leave London and relocate its headquarters to Germany. However, the initial reactions from analysts were somewhat cautious. Given BYD's disappointing performance throughout the year, price reductions and negative analyst opinions have led to another sell-off. Now, the Company has decided to buy back its own shares, but will that be enough for an upward trend? First Hydrogen has several pieces of promising news. The Canadians have introduced their hydrogen fuel cell commercial vehicles in the UK, and interest is high. Furthermore, they plan to enter battery production with a partner. Will the three shares take off further, driven by the positive news?

    Read

    Commented by Armin Schulz on December 5th, 2023 | 07:00 CET

    Blackrock Silver, BYD, Infineon - Silver: The new gold of the technology sector?

    • Mining
    • Silver
    • Electromobility
    • chips

    There is currently an attractive opportunity for investment in silver as it plays a key role in the growing e-mobility sector and chip manufacturing. The increasing production of electric vehicles is driving the demand for silver. Simultaneously, silver is becoming increasingly important due to its use in highly conductive pastes for the progressively sophisticated chip manufacturing industry. These developments could lead to a sustained increase in demand and make silver a potentially lucrative investment. Precious metal prices have already risen sharply.

    Read

    Commented by André Will-Laudien on December 5th, 2023 | 06:30 CET

    Next lithium boom in 2024? Freyr Battery, Edison Lithium, VW, Mercedes - Where are the 100% gainers?

    • Mining
    • Lithium
    • RareEarths
    • Batteries
    • Electromobility

    The year 2024 promises to be highly interesting, that much is certain. The so-called electric boom has not yet taken place, and the falling lithium price of minus 80% in the current year speaks volumes. Of course, major investments such as a relatively expensive electric vehicle depend on the general situation and subsidies. However, neither of these contextual factors bode well. On the contrary, state subsidies are falling, and high inflation is weighing on private household budgets. So why not get the good old diesel through the MOT again? After all, continuing to drive an old vehicle is 100 times more sustainable than buying a new electric vehicle with rare and difficult-to-extract metals. While green thoughts are commendable, the costly construction of so-called gigafactories continues. On the stock market, the question arises: Who will ultimately emerge as the winner?

    Read