Close menu

October 6th, 2023 | 07:00 CEST

Saturn Oil + Gas, Siemens Energy, Allianz: Perennial favorites in the energy sector and insurance - Which stocks are in for big price jumps?

  • Mining
  • Oil
  • Energy
  • renewableenergies
  • insurance
Photo credits:

Classic sectors such as energy and insurance are currently attracting the attention of investors. The Allianz Group, as an insurance company, is going through a tough restructuring process and has appointed a new CFO. This time, a woman is to do the extensive cleaning. Shareholder confidence is the currency for valuable business; if it falters, as in the case of Siemens Energy, the wind energy company faces a strong headwind due to its opaque external communication. Clear communication, even in the face of setbacks, gets shareholders on board. In the energy sector, Warren Buffett recently increased his stake in an oil company. A promising candidate in this sector is Saturn Oil & Gas. The Company has the potential to achieve a share price of EUR 3.90 compared to the current EUR 1.88. Investors can learn about the management team's approach in this article.

time to read: 7 minutes | Author: Juliane Zielonka
ISIN: Saturn Oil + Gas Inc. | CA80412L8832 , SIEMENS ENERGY AG NA O.N. | DE000ENER6Y0 , ALLIANZ SE NA O.N. | DE0008404005

Table of contents:

    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


    Booming energy sector: Saturn Oil & Gas shares - price target EUR 3.90?

    Energy suppliers are highly valued by prominent investors. A few weeks ago, Warren Buffett and his investment firm Berkshire Hathaway increased their shareholding in the US company Occidental Petroleum (OXY) from 23% to 25.1%, making it the largest shareholder in the business. The logic behind this is understandable: strong industries need strong energy suppliers. In order to achieve the global energy revolution, traditional forms of energy such as oil and gas are needed to enable industries to produce successfully worldwide. China, for example still relies on the construction of coal-fired power plants.

    In the future, German industry will rely on LNG from the US. No wonder, then, that oil and gas companies represent a valuable investment opportunity for investors. In this context, special attention is being paid to the Canadian company Saturn Oil & Gas. Founded in 2001, the energy company focuses on the development of oil and gas deposits in the Canadian regions of Alberta and Saskatchewan. What originally started as an exploration company has grown over the past decades into a solid company with 280 employees.

    According to Reuters, Canaccord analyst Mike Mueller estimates that the stock, currently at EUR 1.88, has the potential to rise to EUR 3.90. There are currently 139,312.898 million shares outstanding. The Saturn Oil & Gas team is transparent in its approach to communicating with its shareholders. There was a damper last week, as the Company had to slightly lower its 2023 oil production forecast from around 27,170 barrels of oil equivalent per day (boe/d) to an estimated 24,100 boe/d. Reasons for the adjusted forecast are wildfires in the Alberta drilling area and other things they openly state in their announcement. The good news is that production is expected to pick up this December, averaging 27,000 boe/d. So, those who see Warren Buffett's strategy of investing in energy as a model should take a closer look at Saturn Oil & Gas' financial statements. Additionally, investors can ask MBA VP of Corporate Development, Kevin Smith questions live next week during the 8th International Investment Forum taking place on October 10, 2023. Click here for free registration.

    Also, on the positive side, the Company has reached an agreement with one of its lenders to defer debt repayments for September and December 2023. This means Saturn Oil & Gas will have more money available to fund new drilling programs this fiscal year. The new drilling programs may soon significantly improve the production rate in 2024 for the benefit of participating shareholders.

    Breach of investor trust at Siemens Energy: First class action lawsuits filed

    German energy company Siemens Energy is learning the hard way just how valuable it is to deal transparently with its shareholders. The outsourced energy division of Joe Kaeser quickly turned out to be a toothless tiger in the renewable energy sector due to bad management decisions when it took a cuckoo into its nest with the purchase of Spanish wind energy company Gamesa.

    In addition to class action lawsuits filed by small investors in the US, justice is also starting to be served against the Company in Germany. According to Handelsblatt, the aim is to understand whether Siemens Energy "and some of its managers or supervisory board members engaged in investor fraud or other illegal business practices."

    Siemens Gamesa, the subsidiary integrated through the M&A, will have to shell out about EUR 1.6 billion to repair damage to rotor blades and bearings on its onshore 4.X and 5.X platforms. In Q3/23, Siemens Energy recorded charges of EUR 2.2 billion at Siemens Gamesa, mainly due to the abovementioned damage, higher product costs and difficulties in ramping up its offshore business. Overall, the Munich-based company expects a loss of EUR 4.5 billion for fiscal 2022/23, according to Renewables Now.

    Despite the damage, the turbines are in operation, and most of the repairs are expected to be carried out in 2024 and 2025. These significant issues with renewable energy highlight the importance of having a reliable oil and gas business.

    Last week, a Siemens Energy AG spokesman said the Company would focus on fixing quality problems with certain onshore platforms at its Siemens Gamesa subsidiary rather than building new business. CEO Christian Bruch must deliver a promising business strategy in November, or shareholder confidence will be further tested. JP Morgan corrects its price target for Siemens Energy shares from EUR 18 to EUR 16.7. Currently, the stock stands at EUR 11.69.

    New tough CFO on Board, Allianz Group thus increases female quota to 44%

    Researchers at the Universities of Glasgow and Leicester find that British companies run by a high proportion of women perform better than companies in this country run purely by men. Word seems to have spread to the Allianz Group, as the new CFO will be a woman from January 1, 2024. Claire-Marie Coste-Lepoutre, Chief Actuary and Head of Planning and Control at Allianz SE and previously CFO and Deputy CEO of Allianz Global Corporate & Specialty SE, will then start as a new member of the Board of Management. Coste-Lepoutre is known for her tough restructuring approach. Together with AGCS CEO Joachim Müller, she has helped to bring the long loss-making industrial insurer AGCS back into the black. In the first half of this year, AGCS, previously the biggest loss-maker, increased its business volume by more than 7%, up from a year earlier. AGCS' operating profit grew by about 65% in Q2/2023, mainly due to its well-performing real estate business and through mid-sized companies.

    Together with Sirma Boshnakova, Barbara Karuth-Zelle and Renate Wagner, Claire-Marie Coste-Lepoutre will be the fourth female member of Allianz's nine-member Board of Management. With a female quota of 44%, the Allianz Group thus plays a pioneering role in the DAX. According to an EY survey, the average proportion of women in the other 39 listed companies is only 23%.

    And where is the ex-CFO Giulio Terzariol heading? Her Italian predecessor answers the call back home and joins moves to Generali in a new role, where he will coordinate international insurance operations and report to the CEO. His future role includes coordinating the activities of the managing directors of all operating units in various regions, including Italy, the DACH region, France, Global Business Activities (including Europe Assistance and Global Business Lines) and International (including CEE, Mediterranean & Latin America and Asia).

    Saturn Oil & Gas specializes in oil and gas development in Canada. Although the Company had to slightly lower its 2023 oil production forecast due to wildfires and other factors, it plans to increase production by the end of the year. Analyst Mueller sees a price potential of EUR 3.90 per share for Saturn Oil & Gas, compared to the current value of EUR 1.88. The Company offers a promising investment opportunity, especially for investors who back energy like Warren Buffett. A pause in debt repayment means the Company has enough capital to finance new drilling projects. Siemens Energy, on the other hand, is struggling with record losses of EUR 4.5 billion for 2022/23, blamed on damage to rotor blades at Siemens Gamesa's offshore turbines. Despite the problems, operations continue. Repairs are scheduled to take place in 2024 and 2025. Transparent dealings with shareholders and a clear business strategy are now crucial to regaining investor confidence, as the first class-action lawsuits from small investors are piling up.
    Claire-Marie Coste-Lepoutre will join the Allianz Board of Management as the new CFO from January 2024. The Allianz Group thus achieves a 44% share of women on the Board of Management and sets an important benchmark in the DAX list. Whether the results of the study by researchers from the Universities of Glasgow and Leicester will also prove true for the Allianz Group on an international level remains to be seen. Coste-Lepoutre is known for her tough and successful restructuring efforts. She has already demonstrated her skills by restoring profitability to industrial insurer AGCS, which she led back to profitability together with AGCS CEO Joachim Müller.

    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 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

    Juliane Zielonka

    Born in Bielefeld, she studied German, English and psychology. The emergence of the Internet in the early '90s led her from university to training in graphic design and marketing communications. After years of agency work in corporate branding, she switched to publishing and learned her editorial craft at Hubert Burda Media.

    About the author

    Related comments:

    Commented by Armin Schulz on February 21st, 2024 | 07:30 CET

    Barrick Gold, Desert Gold, Renk - Golden times everywhere?

    • Mining
    • Gold
    • Defense

    The world is full of economic uncertainty and geopolitical tensions. These are ideal conditions for gold, which is still considered a safe haven. There are now several factors that point to a sustained upswing in gold prices. One factor is the increased involvement of central banks, which are increasing their reserves to an extent not seen for decades. Another factor is the discussion within the BRICS nations about introducing a new currency backed by gold as a counterweight to the dominant US dollar. Therefore, today, we look at two gold companies and shed light on Renk, a representative of the defense industry, which is also experiencing golden times.


    Commented by Juliane Zielonka on February 21st, 2024 | 07:15 CET

    Saturn Oil + Gas, Plug Power, Deutsche Pfandbriefbank - Energy shares and falling knives - where is it worth getting in?

    • Mining
    • Oil
    • Hydrogen
    • greenhydrogen
    • Banking

    The Canadian company Saturn Oil & Gas has announced its capital and operating budget plans for 2024. The main focus is on sustainable oil and gas production with high capital returns, a structured capital allocation and continuous rapid debt repayment. Plug Power is also gaining momentum and taking strong cost-saving measures to maintain its position at the forefront as a green hydrogen provider. Deutsche Pfandbriefbank (pbb) came under the spotlight last week as investors dumped shares due to its involvement in the US office real estate market. Is this bank a falling knife, or does this week offer a potential entry point? We provide the background.


    Commented by Fabian Lorenz on February 21st, 2024 | 07:00 CET

    Top news: BYD, Bayer and Globex Mining

    • Mining
    • Gold
    • Commodities
    • Electromobility
    • chemicals

    Bayer shocked investors yesterday with the announcement of its dividend cut, which shouldn't have been much of a surprise. The Company is burdened with high debt, endless legal fines, and an empty pharmaceutical pipeline. In an initial reaction, analysts have lowered the share price target. BYD, on the other hand, is doing well operationally. Only the share price is not picking up. Will a share buyback turn the share price around? For those who want to profit from the commodity boom with reduced risk, then Globex Mining's stock is attractive. The news flow is strong, and those who act quickly can still register and follow the live presentation of the mining incubator at the 10th International Investment Forum, IIF, today.