In today’s briefing:
- GAPack (468 HK): Unpacking XJF’s Move To Send The Board Packing
- Siemens Gamesa Still Poses High Risks
- SDRL: Course for Free Cash Flow
- RPPL: Climbing Up the Value Chain | All Set for a Strong FY25
- Chevron Corporation: Will The Hess Acquisition Be A Game Changer? – Major Drivers
- ConocoPhillips: A Deep Dive into the Oil Giant’s Strategic Successes and Global Footprint! – Major Drivers
- Albemarle Corporation: Is The Liontown Acquisition A Potential Game Changer? – Major Drivers
- EOG Resources Inc.: Powering the Future – How This Energy Leader is Defying Odds! – Major Drivers
- CF Industries Holdings Inc.: How Aggressive Market Dynamics Are Shaping The Future! – Major Drivers
- Enterprise Products Partners L.P.: Navigating Market Challenges with a Strong Strategy! – Major Drivers
GAPack (468 HK): Unpacking XJF’s Move To Send The Board Packing
- Back on the 27 January 2023, Jardine Matheson (JM SP) entered an agreement with Shandong Xinjufeng (301296 CH) (XJF) to sell its 28.22% stake in GAPack (468 HK).
- That sale completed in September. Last week, XJF requisitioned an EGM to consider appointing five new (& friendly) directors, all-but taking control of the board.
- CEO and founder Jeff Bi holds 9.65%. The question is: what are his options?
Siemens Gamesa Still Poses High Risks
- Siemens Energy plans to bring back the wind business (Siemens Gamesa Renewable Energy) to profitability by fixing quality issues in onshore and driving ramp-up in offshore. Break-even is expected in 2006.
- The restructuring process continues after four years of losses, €2 billion net loss is expected for FY 2024. The top Spanish financials institution have turned off the credit tap recently.
- The visibility on the end of wind losses remains very limited with execution risk, so I would apply 0.9x P/BV and be short the stock, TP €9.76.
SDRL: Course for Free Cash Flow
- SDRL reported third quarter results exceeding expectations and announcing slight extensions to when near-term contracts would expire.
- There had been minimal news from SDRL to expect contract extensions. SDRL’s peers had been reporting a slowing in contract activity.
- The free cash flow SDRL is generating is being used for stock buy backs with the authorization doubled to a total of $500 million.
RPPL: Climbing Up the Value Chain | All Set for a Strong FY25
- RPPL reported decent Q2FY24 earnings, led by volume growth and margin expansion. Revenue growth was somewhat tepid due to decline in realization led by volatility in raw material prices.
- RPPL is seeing good traction in exports with improving mix of value-added products and enhanced geographic reach. Revenue from exports is guided to triple to INR 30cr+.
- RPPL has also entered into In-mold Labeling (IML) in rigid plastic injection molding products. This could be a game changer for RPPL in terms of growth and target market potential.
Chevron Corporation: Will The Hess Acquisition Be A Game Changer? – Major Drivers
- Chevron Corporation delivered a mixed set of results for the previous quarter, with revenues above the analyst consensus.
- The company unveiled a robust quarter marked by formidable earnings, cash flow, and ROCE.
- Solid cash flow facilitated the realization of financial priorities, allowing for the repurchase of Chevron shares exceeding $3 billion, even amidst PDC transaction restrictions.
ConocoPhillips: A Deep Dive into the Oil Giant’s Strategic Successes and Global Footprint! – Major Drivers
- ConocoPhillips delivered a mixed set of results in its most recent results, with revenues falling short of Wall Street expectations but above-par earnings.
- In the recent quarter, ConocoPhillips witnessed robust performance, marked by significant achievements across its international portfolio.
- Financially, the company demonstrated significant global and Lower 48 production in Q3, prompting an upward revision of full-year production guidance.
Albemarle Corporation: Is The Liontown Acquisition A Potential Game Changer? – Major Drivers
- Albemarle’s results were a major disappointment as the company failed to meet Wall Street’s revenue and earnings expectations.
- However, despite the surge in sales, Albemarle’s net income witnessed a significant decline of 66%, amounting to approximately $303 million, along with a parallel drop in diluted earnings per share (EPS) to $2.57.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
EOG Resources Inc.: Powering the Future – How This Energy Leader is Defying Odds! – Major Drivers
- EOG Resources surpassed the revenue expectations as well as the earnings expectations of Wall Street.
- The company has displayed a commendable trajectory, with a 33% increase in production, a 17% reduction in per unit operating costs, and the generation of substantial free cash flow and net income, surpassing $20 billion each.
- These achievements have not only surpassed expectations in production volumes, capital expenditures, and per-unit operating costs but have also empowered EOG to enhance its full-year oil production guidance and diminish its full-year cash operating cost projections.
CF Industries Holdings Inc.: How Aggressive Market Dynamics Are Shaping The Future! – Major Drivers
- CF Industries Holdings delivered a disappointing set of results as the company was unable to meet Wall Street’s revenue and earnings expectations.
- In the third quarter, they experienced a departure from the typical pattern of softened demand and prices in North America.
- This strong demand early in the quarter resulted in an upward trajectory for nitrogen prices, with urea barge prices in New Orleans rising from below $300 to over $400 per ton in early September.
Enterprise Products Partners L.P.: Navigating Market Challenges with a Strong Strategy! – Major Drivers
- Enterprise Products Partners delivered a mixed result in the recent quarter, with revenues above market expectations but failed to surpass the analyst consensus regarding earnings.
- Navigating through low natural gas and NGL prices, Enterprise achieved significant volumes in its midstream system, transporting 12.2 million barrels of crude oil equivalent per day.
- Improved quality in the Eagle Ford crude oil system facilitated sales and enhanced crude prices.
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