TubeSolar, BASF, Nordex - Mastering the energy turnaround with these shares

BASF - EUR 500 million savings drive outside of production

BASF AG in Ludwigshafen am Rhein is in the midst of a digital turnaround. It is no easy task for the chemical giant because, in Germany, the Company is struggling with skyrocketing energy prices that are driving up production costs. A sharp drop in profits in the third quarter is the result. Now, a rigorous savings program is to cut costs outside production by around EUR 500 million a year. More than half of the savings are to be achieved at the Ludwigshafen site. Job cuts are not ruled out. The business, service and research units and Group headquarters are to be streamlined.

With a net income of EUR 909 million (Q3 2021: EUR 1,253 million) due to non-cash impairment charges, the results are significantly below the prior-year quarter and well below the general analyst consensus. One of the reasons for the net result is non-cash impairment charges on the investment in Wintershall Dea amounting to around EUR 740 million. Caused by the partial write-down of Wintershall Dea's stake in Nord Stream AG, which operates the Nord Stream 1 pipeline. And this is known to be without gas and to have been damaged in the Baltic Sea.

In the third quarter of 2022, sales were EUR 21.946 million - an increase of 12% compared to the same quarter last year (EUR 19.669 million). This increase was mainly due to higher prices. Currency effects, especially from the USD, also had a positive impact. However, sales volumes were down compared to the prior-year quarter. Sales were slightly above average analyst estimates for the third quarter of 2022 (EUR 21.076 million).

The Group is working full speed on further streamlining to adjust structures in the medium and long term in order to remain competitive in Europe. With a current share price of EUR 45.12, analysts are issuing a buy recommendation.

TubeSolar - Hop farmer dares field test with dual use

Until now, the either-or principle applied to agricultural land. Farmers could use their fields either for agricultural production or cover their lands with photovoltaic systems. Thus, conventional farmland was lost. Thanks to the patented solution of TubeSolar AG, a double use of these agricultural areas is possible. Thus, traditional agriculture and energy production with solar cells can be operated. This is an extremely pragmatic solution to Europe's current energy crisis. Instead of conventional area modules, the Augsburg-based Company relies on tubular modules installed over the used areas, similar to a scaffold. These tubular solar systems offer numerous intelligent advantages in use. For example, the partial shading provided by the solar tubes reduces water requirements in dry regions and protects plants from solar radiation. The lightweight construction also enables wind and snow resistance. The solar modules are more robust and can be used in changeable weather regions.

The round solar tubes were invented by a woman. The graduated electrical engineer Dr Vesselinka Petrova-Koch created the technology already in 2011. To commercialize the invention, she offered the low-cost photovoltaic technology to the Augsburg company OSRAM®. Many investors are familiar with the name from lighting production. OSRAM® itself has since been integrated into the Austrian AMS.

Shortly before the takeover in 2019, the Company TubeSolar AG acquired the patent of Dr Petrova-Koch. TubeSolar AG is located on the former site of the OSRAM® factory in Augsburg, Germany. TubeSolar AG has two experienced company leaders at the top. Jürgen Gallina held technical management positions at OSRAM® for more than 20 years, while Felix Mantke, a member of the Management Board since January 1, 2022, is a highly experienced M&A and capital market expert.

Just how beneficial TubeSolar's PV technology will be can be seen from the spring of 2023 in the German state of Bavaria. It is then that an agri-photovoltaic system will be erected on the hop field of farmer Josef Wimmer. Here, the lightweight TubeSolar modules will generate solar power at a height of about 7m above the hop field and, at the same time, protect the hop plants from excessive solar radiation, hail and heavy rain. Wimmer is taking a chance on the field trial and is aware that innovations need courageous people like him to prove what is possible.

Nordex - Major order for 81.6MW causes share price to rise slightly

A booking for 12 wind turbines at Nordex AG by the Landwind Group makes the hearts of renewable energy investors beat faster. The Nordex Group is supplying 12 N163/6.X turbines, which will be distributed across four different wind farm sections in eastern Lower Saxony. **The order also includes a twenty-year premium service for the turbines. A wind turbine has a regular service life of two decades.

The "Gevensleben" project - named after the Landwind Group's headquarters in Lower Saxony - is intended to contribute to the construction of wind farms in the districts of Helmstedt and Wolfenbüttel. The 6-MW-class turbines on hybrid towers with a hub height of 164 meters will go into operation from the winter of 2023 and will then produce around 180 million kWh of green electricity per year and save 128,000t of CO₂.

Karsten Brüggemann, Vice President Region Central of the Nordex Group, is delighted about the order from the Landwind Group: "We are proud to be working with the Landwind Group again and to be able to demonstrate the reliability of our technology once more. The N163/6.X turbines, with 6.8 MW of installed rated power, are currently among our most powerful turbines. For our long-standing partner, we are thus able to offer solutions tailored to the specific needs of each project while at the same time taking the energy turnaround in Germany a good step forward." Nordex AG has so far installed wind turbines with a total capacity of 41 GW in over 40 markets and generated sales of around EUR 5.4 billion in 2021. The stock rose slightly by 0.56% to EUR 8.62.

Innovative companies like TubeSolar AG offer cost-efficient PV solutions for dual use of open spaces. In this way, the Company is providing farmers with an additional source of income, especially in this time of crisis. The value of the expansion of renewable energies in the future is also demonstrated by the Landwind Group with its major order placed with the Nordex Group. Twelve wind turbines will cause quite a stir in the eastern part of Lower Saxony in Germany. The share price rose slightly. On the other hand, BASF AG, which is in the midst of high production costs and a digital turnaround, is focusing on savings. EUR 500 million per year are to be saved - outside production. Analysts see buy and hold potential.