November 17th, 2020 | 10:34 CET
Saturn Oil & Gas, Petrochina, XPENG: Ready for take-off!
Table of contents:
"[...] Recovery rates of more than 90% rare earths are another piece of the puzzle on the way to the economic viability of our project. [...]" Craig Taylor, CEO, Defense Metals
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.
Saturn Oil & Gas - Ready for Take-off
Something is happening at Saturn Oil & Gas Inc. The chart is looking very promising, and the bottom formation between CAD 0.08 and CAD 0.10 has finally been reached. The "vaccination rally" last week ignited the sales rocket at Saturn Oil. Within 5 trading days, over 2 million shares were traded on Tradegate, a picture that has become rare since oil prices have been trending downwards for a long time. Currently, the black gold is stabilizing at USD 41.5 in WTI and USD 43.7 in Brent. Commodity experts predict that the COVID oil price lows are now behind us, with consensus estimates of over USD 60 in 2021.
Saturn Oil & Gas hired the strategy consultant Jean-Pierre Colin at the beginning of November. He was at the table with top political figures within the Canadian government and the Privy Council of Canada on five of Petro-Canada's acquisitions of what were then the country's largest oil and gas companies in the 1980s. It is reasonable to assume that he will come on board with his expertise as an expansion consultant to add further strategic assets to the still relatively small Saturn Oil & Gas.
With its vast reserves in the ground, Canada is and will remain one of the top energy suppliers in the world. After the pandemic, global oil consumption is likely to return to the 100 million barrel per day trend. Saturn had a production price of around USD 12. An expansion of the properties would enable considerable synergy and volume effects in resale or supply contracts with the refineries.
If you add 1 & 1, a storm is brewing in quiet Saskatchewan that could unite entire regions into a target Company under the management of Saturn. Some highly indebted US providers have already fallen out of the market and are withdrawing from the market. Saturn, on the other hand, is standing shoulder to shoulder to expand its sphere of activity significantly; the days of plus-minus CAD 0.12 quotations are history.
PetroChina - also on the road in Canada
Petro China Company (PCC) Limited recently announced impressive third-quarter 2020 earnings. The profit is RMB 40.1 billion or RMB 0.219 per share compared to a profit of RMB 8.8 billion or RMB 0.048 a year earlier. The profit per ADR was USD 3.17. PCC is one of China's three major oil giants; the other two are Sinopec and CNOOC Limited.
PetroChina's results in the last quarter benefited from higher production, a decrease in upstream costs and exceptional gains from the spin-off of its pipeline and storage assets. However, total revenues of China's dominant oil and gas producer for Q3 fell 19.6% YoY to RMB 497.1 billion due to lower commodity prices and a decline in sales volume. PCC is also active on the North American continent.
Ovintiv Inc. recently announced that its subsidiary, Ovintiv Canada ULC, has agreed with PetroChina Canada Ltd. to terminate the joint venture between the parties and transfer the ownership and operation of certain assets of the Duvernay Shale in West Central Alberta. Ovintiv and PCC have agreed to split the Duvernay property, and related infrastructure on a 50/50 basis as each Company will independently own and operate its interests in the future. Ovintiv's average daily net production in the Duvernay in the second quarter of 2020 was last reported at approximately 13,000 barrels per day. PetroChina is an oil giant with annual sales of over USD 280 billion and ranks 30th on the Forbes list.
XPENG - The little Chinese boy attacks Tesla
XPENG, or Xiaopeng Motors, is a Chinese representative for e-mobility, founded in 2014 the Company employs 3800 people. The Company has its headquarters in Guangzhou and offices in Mountain View, California. Currently, there are two top models on the market, an SUV (G3) and a sedan (P7).
Among the first supporters were He Xiaopeng (now chairman of XPENG), founder of UCWeb and former employee of Alibaba, and the legendary Lei Jun, founder of Xiaomi. The most prominent Chinese and international investors are Alibaba, Foxconn and IDG Capital. In a significant financing round in 2018, Alibaba's Vice President Joseph Tsai joined XPENG's board of directors, and shortly after that in March 2019, Tesla Inc. accused the Company of intellectual property theft. In August 2020, Alibaba and the sovereign wealth funds of Abu Dhabi and Qatar invested another USD 400 million in the Company. On August 27, 2020, the Company went public on the New York Stock Exchange. The Company raised USD 1.3 billion.
XPENG boss Brian Gu anticipates growing momentum in P7 sales into the following year 2021 after deliveries only began in June. A third model series is to come onto the market as early as next year and fire up Tesla because the P7 looks not insignificantly worse than the Tesla S - but is 30% cheaper. XPENG currently has a capitalization of "only" USD 16 billion and has doubled its share price in just one month. In comparison to the USD 380 billion Tesla, XPENG is still far behind the curve with its share price, but technologically, it is catching up daily. One can be curious!
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