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August 4th, 2023 | 07:40 CEST

Saturn Oil + Gas, Vonovia, First Hydrogen, VW - How energy and propulsion are changing the markets, winners, and losers

  • Mining
  • Oil
  • Hydrogen
  • fuelcell
  • Electromobility
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Saturn Oil & Gas is adding three experienced forces to its leadership team. Janet Yang brings her expertise in finance and strategy, Andrew Claugus is a versatile petroleum engineer, and Grant MacKenzie will serve as Chief Legal Officer. Their knowledge and years of experience in the oil and gas industry make them valuable resources for the Company and its future development. Vonovia is severely undervalued due to the current real estate situation in Germany. First Hydrogen is making strides with a hydrogen refueling that covers a distance of 630 km, while Volkswagen is reducing the production of its electric car, ID.4. Let's find out who the winners and losers are in the stock market this time.

time to read: 7 minutes | Author: Juliane Zielonka
ISIN: Saturn Oil + Gas Inc. | CA80412L8832 , VONOVIA SE NA O.N. | DE000A1ML7J1 , First Hydrogen Corp. | CA32057N1042 , VOLKSWAGEN AG VZO O.N. | DE0007664039

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


    Saturn Oil & Gas strengthens management team

    Saturn Oil & Gas is welcoming three new members to its team. With the Company's increasing value and expanding workforce, the leadership team is also growing. Janet Yang, Andrew Claugus, and Grant MacKenzie have joined the board, with Grant MacKenzie taking on the role of Chief Legal Officer to strengthen the management.

    Ms. Janet Yang is an experienced, results-driven senior financial executive with a proven track record of providing financial and strategic leadership to companies in the oil and gas industry. Her expertise specifically includes raising equity through private equity financing, M&A, joint ventures, business development and corporate governance. She is known for her ability to create multi-year business plans and successfully implement a company's short and long-term strategies. Ms. Yang earned her MBA in Finance and Accounting from the prestigious Booth School of Business at the University of Chicago. This degree provided her with a solid academic foundation and exposed her to the latest industry trends and best practices, further strengthening her leadership skills and expertise.

    Andrew Claugus is a versatile petroleum engineer with experience in various technical and financial disciplines in the oil and gas industry. Additionally, he has gained hands-on experience in field operations, asset and pipeline design, and production engineering. From 2014 to 2022, Andrew Claugus served as Engineering Manager at MECO IV, LLC, a privately held oil and gas development company based in Denver, Colorado. After the sale, he founded WhiteFin Resources, a privately backed company that invests in non-operated interests in core areas of established basins. In the petroleum industry, the term "established basins" refers to geological regions or areas with a proven track record of successful oil and gas production. Claugus earned a Master of Engineering in Petroleum Engineering from the Colorado School of Mines and a BSc in Chemical Engineering from Case Western Reserve University. He is known for his innovative spirit and ability to tackle complex challenges. His expertise and hands-on experience make him a valuable player in the industry.

    Grant MacKenzie starts at Saturn Oil & Gas as Chief Legal Officer. He joins from the prestigious and global law firm Dentons Canada LLP, where he was closely involved with the Company during its transformational growth phase since 2021. As a partner at Dentons and corporate co-head of the Calgary office since 2018, he brings the experience of a 21-year legal career to the Company. He is known and respected for his diligent handling of commercial assignments. Commercial engagements are legal work related to businesses, corporations, and partnerships. The goal is to ensure that these entities act in accordance with the law, comply with regulations and protect their interests in business transactions.

    Vonovia: Share strongly undervalued

    Shares in Vonovia, Germany's largest real estate group, have underperformed Germany's benchmark DAX index. Stifel analysts recently downgraded Vonovia and other real estate companies from "hold" to "sell." The reason they gave was that these companies are facing a protracted lean period after a phase of seemingly endless growth driven by increasingly favorable financing opportunities. In Germany, where the Group is headquartered, housing prices to buy property have fallen, marking a reversal of years of gains. Germany is the largest real estate investment market on the European continent.

    Investment volumes are down across Europe, but the decline in Germany brings transactions to 2012 levels, Jones Lang LaSalle said. But Seeking Alpha says the current discount to book value offers a buying opportunity.

    Rising interest rates and construction costs have made it unprofitable to create affordable housing under current German law. Long-term investors looking to acquire residential properties can only buy existing units from real estate companies such as Vonovia. These long-term investors, such as pension funds, need to diversify their portfolios and match their future obligations with their cash flows. Vonovia's current market capitalization is EUR 16.98 billion. Therefore, investors could encourage the management to narrow the gap between the portfolio value and the current market capitalization. However, being a tenant at Vonovia may not be the preferred choice at the moment.

    First Hydrogen: Sensational 630 km distance with one tank

    The race for renewable energies in mobility and logistics is far from decided. Just recently, the Berlin Fire Department, of all places, made a blunder: in the course of climate neutrality, fire trucks were equipped with electric drives. However, the weight of the new e-fire truck is too heavy for firefighting access routes, experts warn. Berlin authorities do not see any problems with it. But should the desk aristocrats be trusted?

    First Hydrogen is an innovative company from Canada which aims to convert transport vehicles and vehicle fleets to emission-free propulsion - with hydrogen. While electric battery-powered vehicles suffer from heavy weight and long charging times, First Hydrogen's technology offers two essential advantages:

    1. a First Hydrogen van can travel 630 km on a single tank of hydrogen.
    2. refueling takes only a few minutes, unlike an electric battery

    During a fleet test drive with UK utility SSE PLC, the First Hydrogen vehicle (FCEV) achieved this remarkable range. The vehicle performs similarly to a diesel vehicle in terms of range but without polluting emissions. The FCEV handled longer distances effortlessly and proved compatible with existing infrastructure. Refueling took only a few minutes, which also speaks in favor of commercial use in the B2B sector. Especially in logistics, every minute saved is cash.

    Steve Gill, CEO of First Hydrogen Automotive, is pleased to be working with the enthusiastic team at SSE. "*The different routes and driving situations during the test provided valuable insights into the vehicle's capabilities. *The test data shows efficient performance of the fuel cell and indicates that a higher load and consistent speed have little impact on range."**

    The test phase in Aberdeen, UK, provides both companies with insights into the performance of a hydrogen vehicle in field trials. Experience in day-to-day operation will be invaluable for R&D on whether hydrogen fuel cell electric vehicles will fit into SSE PLC's future fleets.

    The German government adopted the National Hydrogen Strategy in 2020 to accelerate the market ramp-up in Germany. On July 26, 2023, the Cabinet approved the update of this strategy.

    VW curbs production of ID.4: Inflexible production lines lead to bottlenecks

    Demand in the electric car market has dropped on the consumer side. As a result, Volkswagen has to cut back production of its VW ID.4. However, it is not the uninterested buyer who is to blame, but bad decisions in planning and implementing production: the assembly lines need to be more flexible. VW has specific assembly lines for each drive concept, whether electric or combustion engines. This strict separation leads to two significant disadvantages.

    For one, bottlenecks can occur if there is insufficient demand for specific models, as in the current case of the ID.4 in Emden. Because the production lines are not designed for rapid changeovers, the assembly lines cannot be flexibly adapted to market requirements. That leads to unused production capacities and causes enormous costs without being able to generate corresponding revenues.

    On the other hand, the rigid separation of production lines also means limited efficiency in the use of existing production resources. As a result, Volkswagen is cutting shifts and extending plant vacations. Employees are the first to suffer the missteps of white-collar management. Also, Volkswagen's idea of launching an electric camper is completely out of touch with reality when it comes to marketing, especially if campers intend to head south over the mountains. It is too heavy, and, more recently, overnight stays to recharge the battery have to be factored in for the cost-conscious urban nomads.

    Saturn Oil & Gas is expanding, bringing three new additions to its executive ranks. Yang, Claugus and MacKenzie will bring their extensive experience and expertise to help the solidly positioned oil and gas company achieve sustainable growth and success. As it moves to the electric car, Volkswagen is experiencing its share of decision errors. Bottlenecks are occurring in the ID.4 production line. The reasons are lack of demand and the poorly planned factory production line. The Wolfsburg company is trying to counteract this with personnel cuts. The team of First Hydrogen Corp. can be pleased. The first test drives show a remarkable performance of 630 km distance with a hydrogen refueling. The test drive of the fleet in Aberdeen, UK, is carried out in cooperation with the company SSE PLC. Real estate group Vonovia is feeling the full force of the political missteps taken by the current German government. Both new construction and the refurbishment of existing properties are not economically viable at present. It is likely that the tenants will bear the consequences of Berlin's mistakes.

    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.

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    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

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