What are the investment opportunities in Europe's "gas-off" crisis? These U.S. stocks have already "sniffed the wind", and their share prices have quietly doubled this year-clevelanddrifters.com

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What are the investment opportunities in Europe's "gas-off" crisis? These U.S. stocks have already "sniffed the wind", and their share prices have quietly doubled this year

time：2023-03-24 01:23:33 source：clevelanddrifters.com author：Technology stocks

What are the investment opportunities in Europe's "gas-off" crisis? These U.S. stocks have already "sniffed the wind", and their share prices have quietly doubled this year

The "Beixi No. 1" natural gas pipeline, which was good, has a big problem again!

On September 2, local time, Gazprom announced an "indefinite" closure of the gas pipeline to Europe on the grounds of "leakage of the main turbine". It can be seen that the natural gas flow of "Beixi No. 1" dropped from only 30 million cubic meters per day to 0 on that day. Source: Caijing M Square Market analysis believes that Russia's move may be in response to the European Union's unexpected natural gas reserves. In June this year, the European Union passed a resolution requiring member states to increase their natural gas reserves to 80% of the capacity limit by November 1 for industrial, heating, lighting and other needs this winter. As recently as September 1, the EU announced that it had achieved this goal ahead of schedule. Moreover, on September 2, the German natural gas regulator also announced that Germany has achieved a natural gas storage rate of 85.02%, exceeding the plan ahead of schedule. As of late trading, the price of natural gas in the Netherlands has fallen in recent months, and is currently up 18.49% at 254 euros per megawatt hour. The contract fell 37% last week. Source: barchart On the other hand, Leon Izbicki, gas analyst at Energy Aspects, said gas prices in Europe could rise to €400/MWh if gas supplies via Nord Stream ceased in September and would continue to import heavily to the US natural gas. According to a report by Spark Commodities, the daily charter rate for LNG carriers between mid-September and mid-November has risen to US$105,250 a day, 64% higher than the current rate of US$64,000 per day and 124% higher than the price a year ago. Affected by this news, oil and gas transportation stocks related to natural gas transportation have all achieved gains during the year. What are the individual stocks in the market about oil and gas transportation?

Scorpio Tankers

$Scorpio Tankers(STNG.US)$ is the biggest gainer under the opportunity of this round of natural gas oil transportation. The stock has risen more than 237% this year. And it closed up more than 3% on Friday. Scorpio Tankers is principally engaged in the provision of marine transportation of refined petroleum products. Serving end users in the oil supply chain by distributing products such as gasoline, heating oil and fuel oil from refineries. In addition, the company is the youngest oil tanker shipping company in the world. The current average age of tankers is 6.3 years, while a large part of the global short- and medium-range tanker fleet is over 15 years old. The overall shipping utilization rate will be remain high in the future. The company's most recent financial report data shows that the stock achieved operating income of $405 million, net profit attributable to the parent of $191 million (turning a loss from a loss to a profit year-on-year), and earnings per share of $3.44. According to the company, in late March 2022, the company announced that it will also sell 2 LR2 tankers and 1 MR tanker for a total price of 112.5 million US dollars, and it is expected to obtain about 55 million US dollars in liquidity from the transaction. . In addition, the company plans to sell two LR1 tankers, three LR2 tankers and one MR tanker. It is reported that the company plans to complete the sale of the six tankers before the end of the third quarter of this year, after which it will focus on the LR2 tanker market. At present, the company has 39 LR2 tankers, 60 MR tankers and 14 Handymax tankers. According to the daily freight rate (TCE) disclosed in the company's second quarter financial report, it will continue to maintain a positive profit in the second half of the year.

Torm Plc

$Torm(TRMD.US)$ is also a stock that has benefited from the rise in this tanker cycle. The stock has risen more than 137% this year. Torm Plc is also principally engaged in the ownership and operation of product tankers. The company transports refined oil products such as gasoline, jet fuel, kerosene, naphtha and fuel oil, and occasionally dirty petroleum products such as fuel oil. In the second quarter of 2022, Torm achieved a TCE rate of $29,622/day, an EBITDA of $153 million and a pre-tax profit of $107 million. In addition, the company's cash flow from operating activities in the second quarter of 2022 was $71.1 million ($13.4 million in the same period in 2021, an increase of 430% year-on-year). Strong earnings and cash flow growth have also prompted the company to increase its dividends to 50% of the maximum profit cap. According to the second quarter financial report, the company currently plans to distribute a dividend of US$47 million, which is consistent with the previous dividend policy (25%-50%). As of August 14, 2022, Torm currently covers 36% of the remaining revenue days in 2022 with a TCE of $43,828/day, according to the company's earnings disclosure. Assuming that the price of TCE remains unchanged for the rest of 2022, the company's final adjusted profit will reach US$509-527 million, and the possible dividend amount will reach US$250-260 million, which greatly exceeds market expectations. In Q3, the company will have 78 tankers (13 LR2, 8 LR1, 57 MR).

Golar LNG

In addition, $Golar LNG(GLNG.US)$ is also the beneficiary stock of this round of oil transportation. The company is up 118% so far this year. glng owns and operates LNG carriers, floating storage and regasification units. It operates primarily through the following segments: Ship Leasing Operations, Gas Development Upstream and Midstream Integrated Solutions, and Power. At present, the company announced that it has completed the sale of its own oil tanker. Interestingly, the company only sold its own oil tanker to its own subsidiary (CoolCo), and held 41.3% of the shares. However, Golar will focus more on the development of floating liquefaction platforms (FLNG), which will also benefit from higher gas prices and transportation prices. In simple terms, FLNG devices can be divided into LNG production storage and unloading devices modified on the basis of barges and oil tankers and new concrete floating production storage and unloading devices. The whole device can be regarded as a floating LNG production and receiving terminal, which can be directly moored above the gas field for operation without the need for the construction of subsea gas pipelines, LNG plants and wharfs in advance, which reduces the development cost of the gas field. At the same time, the pressure loss of raw natural gas transportation is reduced, and natural gas resources can be effectively recovered. Currently, the company already owns one FLNG with an expected profit of $305 million this year, and expects to own another FLNG by the end of 2023. The company expects an annual adjusted EBITDA of $151 million. Forward profits of up to $456 million (not including the profits of several tanker operators under its control). With the recent rise in natural gas prices, it is expected that related companies will be further sought after by the market. Other, individual stocks related to natural gas industry, you can also pay attention to the following. Related reading: Natural gas prices skyrocketed 10 times! Which U.S. stocks benefit from this energy crisis? Editor/ping Risk Warning: The opinions of the authors or guests shown above have their own specific positions, and investment decisions need to be based on independent thinking. Futu will endeavour but cannot guarantee the accuracy and reliability of the above content, and will not be liable for any loss or damage arising from any inaccuracies or omissions.

(Responsible editor：Trend)

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