STOCKS TELEGRAPH

Tag: Energy

  • GasLog Partners LP (GLOP) Stock Exhibits Volatility Following Disclosure of Q2 2021 Financial Reports

    GasLog Partners LP (GLOP) stock prices were up 4.78% as of the market close on July 26th, 2021, bringing the price per share up to USD$5.26 at the end of the trading day. Subsequent premarket fluctuations saw the stock fall by 11.60%, bringing it down to USD$4.65.

    GLOP Stock’s Charter Agreements

    GLOP stock recently announced three new time charter agreements with a string of companies: GasLog Sydney was chartered for one year in collaboration with a subsidiary of TotalEnergies SE; Solaris was chartered for eight months in a partnership with Royal Dutch Shell; and a deal with a wholly owned subsidiary of Cheniere Energy, which will see Methane Heather Sally being chartered for one to three years. The company also signed a new one-year time charter agreement with TotalEnergies for GasLog Seattle.

    Additional Recent Developments

    The second quarter of fiscal 2021 saw the company repay USD$18.8 million in debt, contributing to the USD$54.8 million of debt repaid over the first six months of 2021. GLOP stock also published the Partnership’s Sustainability Report for the previous year on July 20th, 2021. Effective August 1st, 2021, GLOP will see Mr. Eniozi, currently, Chief Operating Officer of GasLog, take over as director of the Partnership and as CEO of the Partnership.

    GLOP Stock Hits Quarter Milestone

    GLOP stock finalized previously scheduled dry-dockings for three vessels from its fleet: the Methae Rita Andrea, the GasLog Greece, and the GasLog Glasgow. This has resulted in a total of 82 scheduled off-hire days for the 2021 quarter, up from zero off-hire days reported for the second quarter of 2020.

    Financial Reports

    Revenue for the second quarter of 2021 was reported at USD$70.4 million, while profits for the quarter were reported at USD$14.7 million. Adjusted profit was USD$12.7 million for Q2 2021, with adjusted EBITDA reported at USD$45 million. Earnings per unit for the quarter came in at USD$0.14, with an adjusted earnings per unit of USD$0.10. the second quarter of fiscal 2021 also saw GLOP stock declare a cash distribution of USD$0.01 per common unit on record.

    Future Outlook for GLOP Stock

    Armed with a string of new strategic collaborations, GLOP stock is keen to continue its trajectory of success. The company is keen to continue expanding and consolidating its market footprint, with investors hopeful for organic growth and long term increases in shareholder value.

  • PBF Energy Inc. (PBF) Stock Undergoes Minor Volatility Following BAAQMD Emissions Ruling

    PBF Energy Inc. (PBF) stock prices were up 8.17% as of the market close on July 21st, 2021, bringing the price per share up to USD$10.46 at the end of the trading day. Subsequent premarket fluctuations saw the stock fall by 2.87%, bringing it down to USD$10.16.

    BAAQMD’s Decision

    July 21st, 2021 saw the company address the BAAQMD Board’s decision to adopt Proposed Amended Rule 6-5, in regard to particulate emission in the Bay Area resulting from refinery Fluid Catalytic Cracking units. The company has been collaborating closely with Bay Area Air Quality Management District staff throughout the rule-making process, which will require refineries to meet a specific emission standard by 2026. Fortunately, this will not require the installation of a wet gas scrubber or other potentially costly technology.

    Implementing Change

    In line with this, the company plans to continue with the implementation of previously planned projects over the upcoming months, which will see the Martinez refinery undergo a drastic reduction in emissions. The company expects to close the gap between existing emissions and target emissions by the first quarter of 2022. PBF is keen to continue partnering with the BAAQMD to facilitate efficient improvements in air quality while ensuring the continued provision of the company’s vital products to one of the largest fuel markets in the world.

    Healthy Financials

    The company exhibited improvements in financial reports for the first quarter of 2021, as compared to the prior quarter. March 2021 indicated a significant increase from January, reflecting favorable market conditions as the ongoing push for universal immunizations resulted in a normalizing and resurgence of demand. Despite this increase, however, the independent refining sector is at the mercy of rising compliance costs under the RFS program.

    Solid Liquidity Position

    As the devastating effects of the pandemic played out following its onset, PBF took measures to protect its balance sheet in the face of economic uncertainty. The company reported having a solid liquidity position of USD$2.3 billion as of March 31st, 2021, of which USD$1.5 billion consisted of cash and funds available via an asset-based lending facility. Furthermore, PBF Logistics LP liquidity included USD$44 million in cash and roughly USD$311 million as a part of a revolving credit facility.

    Future Outlook for PBF

    Armed with a solid liquidity position that will help the company execute their strategy over the next couple months until the economy fully returns to pre-pandemic levels, PBF is poised to capitalize on its opportunities for success. Current and potential investors are hopeful that management will leverage the resources at their disposal to usher in significant and sustained increases in shareholder value.

  • Athena Tech Acquisition Corp. (ATHN) Stock Continues to Rise Following Merger with Heliogen

    Athena Tech Acquisition Corp. (ATHN) stock prices were up by a marginal 0.31% as of the market closing on July 6th, 2021, bringing the price per share up to USD$9.73 at the end of the trading day. Subsequent premarket fluctuations have seen the stock rise by 2.26%, bringing it up to USD$9.95.

    Merger with Heliogen

    July 7th 2021 saw the company announce having entered into a definitive agreement for a business combination with Heliogen, Inc. Following the merger, Athena will be renamed Heliogen, Inc. and will be listed on the New York Stock Exchange under the HLGN ticker symbol. Aimed at addressing intermittency issues associated with renewable sources of power generation, Heliogen’s modular, AI-enabled, concentrated solar power plants have the potential to revolutionize the energy market.

    About Heliogen

    Heliogen is focused on flattening the power generation curve by using its technology and concentrated solar power with storage to facilitate increases in the availability of energy to industry. It’sprorietary heliostat layout and control system are designed to concentrate the sun’s rays, with the ability to generate temperatures at the point of focus that exceed 1,000 degrees centigrade. This heat is captured and converted for industrial use, power generation, or to facilitate the production of green hydrogen fuel. The technology aims to provide almost 24-hour renewable energy that will see concentrated sunlight replacing fossils fuels.

    Details of Transaction

    The commercialization of Heliogen’s AI-enabled, concentrated solar power modules is underway, with internationally renowned customers in the industrial, mining, and energy sectors. AllofHeliogen’s stockholders are expected to transition their existing equity into the combined companies, receiving ATHN Class A common stock at closing as compensation. The transaction is forecasted to raise roughly USD$415 million in gross proceeds of cash, assuming no redemptions by public stockholders of ATHN.

    Allocation of Capital

    The capital generated is expected to be allocated towards scale heliostat manufacturing and to support R&D efforts on innovative heliostat technology. The funds will also be used to support the development of projects around the world, as well as to strengthen the company’s balance sheet. The gross proceeds include USD$165 million in shares of stock that investors have committed to purchasing through a PIPE, with each share priced at USD$10.00.

    Future Outlook for ATHN

    Armed with the recent merger with Heliogen, ATHN is poised to capitalize on the opportunities afforded to it in the expansive alternative energy space. Investors of both companies are confident that the merger will result in significant and sustained increases in shareholder value for the combined entity.

  • Overseas Shipholding Group, Inc. (OSG) Stock Skyrockets as Meme Stock Phenomenon Continues

    Overseas Shipholding Group, Inc. (OSG) stock prices were up by 0.48% as of the market closing on July 1st, 2021, bringing the price per share up to USD$2.10 at the end of the trading day. Subsequent pre-market fluctuations saw the stock surge by 33.81%, bringing it up to USD$2.81.

    Net Loss Reports

    Net loss for the first quarter of 2021 was reported at USD$15.9 million, representing a net loss of USD$0.18 per diluted share. This is a significant fall from the USD$25.1 million in net income reported in the same quarter of the prior year, representing net income of USD$0.28 per diluted share. A USD$19.2 million gain associated with the acquisition of the Alaska Tanker Company was a significant contributor to the year-over-year difference.

    Sale of Overseas Gulf Coast

    April 2021 saw the company enter into a contractual agreement that would see OSG sell Overseas Gulf Coast for USD$32.5 million. As per the negotiated sale terms, the transaction was recorded as a USD$5.4 million loss for the first quarter of 2021. The unencumbered asset was sold to general additional liquidity that the company plans to allocate to different areas of need.

    Disheartening Financials

    Shipping revenues for Q1 2021 were down 19.4% to USD$81.3 million from the USD$100.9 million reported in the first quarter of 2020. With the onset of the global pandemic having hit the company especially hard, its woes were compounded by Winter Storm Uri shutting down U.S refineries, thereby further reducing transportation demand. TCE revenues were down 32.5% million at USD$65.5 million for Q1 2021, as compared to Q1 2020. Q1 2021 Adjusted EBITDA was down 88.2% from USD$52.8 million in Q1 2020 to USD$6.2 million in Q1 2021.

    Meme Stock Phenomenon

    With no recent news coverage or significant change in fundamentals, OSG seems to find itself becoming the latest target of the meme stock phenomenon that has taken over the stock market as of late. Driven by retail investors who use the social media platform Reddit, underdog companies with high short interests find themselves being pumped in a coordinated short squeeze. In the absence of sound bases for investing in the company, this phenomenon carries a great level of inherent risk and volatility.

    Future Outlook for OSG

    Armed with the fortuitous expansion of their equity value, OSG finds itself at the cusp of new opportunities that it can capitalize on to usher in more organic growth. Investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Orion Energy Systems, Inc. (OESX) Stock Relatively Stable After Disclosure of Promising Q4 2021 Financial Reports

    Orion Energy Systems, Inc. (OESX) stock prices were down by a marginal 0.52% as of the market closing on June 24th, 2021, bringing the price per share down to USD$5.74. Subsequent pre-market fluctuations have seen the stock climb by 0.17%, bringing it up to USD$5.75.

    Quarterly Revenue Reports

    Revenues for the fourth quarter of the fiscal year 2021 were reported at USD$35.5 million, up 37% from the USD$25.9 million reported in the prior year quarter. This difference is largely attributable to strong national retrofit activity as the vicegrip of the pandemic loosened relatively over the course of the fiscal year. The 2021 quarter was also bolstered by several sizeable national retrofit projects, some of which were for a specialty retailer, as well as a significant national retail customer.

    Yearly Revenue Reports

    Revenue for the full fiscal year 2021 came in at USD$116.8, down from USD$150.8 million in the prior fiscal year. This difference is primarily driven by stoppages arising from the onset of the global coronavirus pandemic, as well as projects being delayed earlier in the fiscal year.

    Operating Expenses

    The last quarter of fiscal 2021 reported operating expenses in the amount of 18.8% of sales, down from the 23.7% reported in the fourth quarter of fiscal 2020. This difference is largely the result of fixed cost absorption from higher business volume in the 2021 quarter. Operating expenses for the full fiscal year 2021 were USD$23.3 million, marginally down from the USD$24 million reported for fiscal 2020. Despite this, operating expenses as a percentage of sales improved year-over-year from 19.9% to 15.9%, reflecting the difference in business volume.

    Cash from Operating Activities

    USD$7.4 million were generated in cash from operating activities over the course of the last quarter of fiscal 2021. This is a significant improvement on the USD$6.1 million reported in the year-ago quarter. The difference is primarily driven by higher net income and favorable working capital changes. The full fiscal year 2021 saw the company generate USD$1.7 million in cash from operating activities, down from the USD$20.3 million reported for the fiscal year 2020. This massive difference is explained by a lower net income as well as the effects of working capital investments.

    Future Outlook for OESX

    Armed with the strength of its most recent financial reports marking the end of fiscal 2021, the company is poised to capitalize on the opportunities afforded to it. OESX is keen to continue its trajectory of success well into the upcoming fiscal year. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Recon Technology, Ltd. (RCON) Stock Plummets Following Announcement of USD$55 Million Registered Direct Offering

    Recon Technology, Ltd. (RCON) stock prices plummeted by a significant 19.31% shortly after market trading commenced on June 14th 2021, bringing the price per share down to USD$5.03 early on in the trading day.

    Registered Direct Offering

    June 14th, 2021 saw the company announce having entered into a securities purchase agreement with various accredited investors. The agreement will see the purchasing of USD$55 million worth of the company’s class A ordinary shares in a registered direct offering. Pre-funded warrants to purchase Class A ordinary shares may be issued in lieu of the shares themselves, with the class A ordinary shares warrants being issues in a concurrent private placement.

    Size of Offering

    As per the agreement, the company has agreed to sell a total of 8,814,102 Class A ordinary shares, or pre-funded warrants in lieu thereof. Concurrently, warrants for the purchase of 8,814,102 class A ordinary shares will be offered in a private placement transaction. The pre-funded warrants will have a set exercise price of USD$0.01 per share, with the option of immediate exercising upon the date of issuance until they are exercised in full.

    Pre-Funded Warrants

    The pre-funded warrants will be issued to certain investors who will have elected to purchase them instead of the Class A ordinary shares up for sale in the offering. This is because the investors would otherwise have surpassed 9.99% beneficial ownership of the company’s Class A ordinary shares immediately after the offering.

    Pricing of Offering

    Ordinary share warrants will be exercisable instantly as of the date of issuance, with a set exercise price of USD$6.24. The warrants for ordinary shares will expire in five and a half years from the date of issuance. The purchase price for one unit comprised of one ordinary share and one corresponding ordinary share warrant will also be USD$6.24. Gross proceeds generated from the offering are expected to be USD$55 million before the deduction of expenses related to the offering. Subject to customary closing conditions, the registered direct offering is expected to close around June 15th, 2021.

    Future Outlook for RCON

    Armed with a solid liquidity position from their private placement, RCON is poised to capitalize on the opportunities presented to it. The company is keen to continue its trajectory of success and usher inorganic growth over the long term. Current and potential investors are hopeful that the management will leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • Elon Musk’s cryptocurrency market crash

    Elon Musk’s cryptocurrency market crash

    The cryptocurrency market has crashed around 10% all thanks to Elon Musk’s tweet saying “Indeed”. The Tesla CEO hold immense power over the cryptocurrency market since the whole market is purely speculative. Musk’s tweet was a response to a threat stating Tesla may dump its Bitcoin holdings because of BTC’s high energy consumption and the subsequent harm to the environment.

    The hint towards Tesla dumping its BTC holdings has spiraled into a hard market crash. Bitcoin has fallen to nearly $45,000 with its market dominance crashing to 40%. The fall in BTC’s dominance is huge and has caused a further panic in the market. The dominance is currently at its lowest since the market crash of 2018 – hinting towards a similar cooling of the market.

    Bitcoin is currently down by 35% from its all-time high established in April. Ethereum, the queen of the market, has suffered to. ETH is down by 24% from its all-time high established earlier in May. The rest of the market is following suit with cryptocurrencies showing nearly double-figure losses in the weekly timeframe.

    Elon Musk has also been called a hypocrite for ditching Bitcoin because of its high energy consumption. Galaxy Digital, a cryptocurrency firm, has released a report titled “On Bitcoin’s Energy Consumption: A Quantitative Approach to a Subjective Question”. According to the estimates of the study, the energy consumption of Bitcoin stands at $113 TWh inclusive of miner demand, pool power, node power, and miner power consumption. The figure is two times less than the energy consumption of the banking sector as well as the gold industry.

     

    Bitcoin has been bashed for not being environmentally friendly and with Elon Musk being the latest to join the ranks of those, the study has shed light over the important issue.

  • Is It Time For Bitcoin To Move To Proof-of-Stake Mechanism?

    Is It Time For Bitcoin To Move To Proof-of-Stake Mechanism?

    Ripple co-founder Chris Larsen certainly thinks so. In a blogpost, Larsen detailed about the shortcomings of the proof of work mechanism. Bitcoin is the market leader but the high transaction costs as well as the energy costs may prove to be a hindrance in its way of maintaining its rank which is why the co-founder suggests it is high time Bitcoin shift from a proof of work mechanism to a proof of stake mechanism.

    Larsen furthered that newer cryptocurrencies are moving away from the energy-intensive proof of work mechanism as well as older cryptocurrencies. Ethereum, the queen of the market, in its much-anticipated eth2.0 upgrade has also designed a move from proof of work to proof of stake. Per the co-founder, altcoins utilizing proof of stake mechanism now comprise 43% of the market – including Ethereum. But where miners and other stakeholders are vowing to utilize green sources of energy, there needs to be renewed efforts to move the crypto industry towards sustainable energy or sustainable mechanisms.

    Ripple Labs has not been a fan of Bitcoin because of its increasing carbon footprint. Brad Garlinghouse, CEO of Ripple Labs, have also been actively speaking out against the environmental costs of cryptocurrency mining – especially Bitcoin since it is done at such a massive scale. Garlinghouse had stated that one transaction on the Bitcoin block chain is equal to the environmental impact of 75 gallons of gasoline burned.

    As the cryptocurrency industry moves towards mass-scale adoption, the environmental impact of mining cannot be ignored. With the proof of work mechanism more energy intensive than the proof of stake, a shift to the more efficient technology will become imminent.

  • Cryptocurrency Going Green – Crypto Climate Accord

    Cryptocurrency Going Green – Crypto Climate Accord

    Cryptocurrencies have garnered a bit of a reputation when it comes to being environmental-friendly. Bitcoin – the market leader – is leading in this regard as well. The energy consumption of one transaction is the same as one household in the UK consumes for two months. While a Cambridge study places the yearly consumption of Bitcoin equal to Sweden’s annual production.

    With the increase in cryptocurrency adoption, the crypto community has decided to take steps towards making the market green. Following suit with the Paris Climate Accord, a Crypto Climate Accord has come into being. The private sector initiative has the objective of making the industry 100% renewable by the year 2030. The Accord has been founded through the partnership of AIR, RMI and Energy Web while various other major players like Web 3, Ripple, ConsenSys, CoinShares and the United Nations has also joined hands.

    The union of around 20 companies has pledged to move the industry to operate in line with the United Nation’s Framework Convention on Climate Change. Although the task is a hard one, given the decentralized nature of the market, the partners have planned to bring the whole crypto industry together and achieve their goal of a sustainable market through mutual collaboration and cooperation.

    Energy Web, AIR and RMI goals include the development of an accounting standard to measure the crypto market’s carbon emission and achieving net zero emissions from the whole industry.