In the past week, the Nordic impact sectors had mixed results. Energy Production & Storage performed the best, while other sectors were back down again. We take a closer look at the Energy Production Equipment & Services sector with companies enabling efficient energy production at scale. The sun did shine on the investors of the best-performing stock of the week making a 88% return.
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The Energy Production & Storage sector performed the best in the past week with a 4% increase fueled by strong performance from EAM Solar ASA. It was another week of mixed results, with no coomon direction of the impact sectors after a challeging year, with all sectors down by double digits. Especially the less-established sectors have been hit shard uch as the Power2X & Fuel Cells sector.
Overview of the performance of each sector the past week
Top 10 best performing impact stocks of the week
In the past week, EAM Solar ASA, a norwegian investment company in solar parks, was the best-performing overall stock rising 88%. Minesto AB, producing electricity from tidal and ocean currents, came second with a 37% increase. Minesto did not report any news of significance but the increase comes after news of installation and commissioning of a project in the Faroe Islands (Link). Finally, Metacon AB, a developer of systems for the production of hydrogen, electricity and heat rose 24% following a potential deal with a Chinese partner regarding the production and sale of Metacon’s hydrogen generators on the Chinese market (Link).
The 10 best performing stocks the past week
Energy Production Equipment & Services in focus – enabling energy production at scale
The Energy Production Equipment & Services sector drives the evolution of energy generation, providing innovative solutions for efficient and sustainable power production. It includes, among others, a world leading wind turbine manufactor (Vestas Wind Systems A/S), underwater kite-like equipment (Minesto AB) as well as floating wind turbines (SeaTwirl AB). Some companies are in the early innings of developmemt, while others have significant revenue, so each company needs to be individually assesed. The sector comprises of 26 listed companies, detailed below. Year-to-date, the sector has delivered a return of -31% with only 4 companies delivering a positive return. However, it is also in this sector, the best performing Nordic impact stock year-to-date can be found (BPC Instruments AB).
Year-to-Date return for Energy Production Equipment & Services stocks
Vestas Wind Systems (Nordnet) is a world-leading provider of wind energy technology and solutions. With a focus on designing, manufacturing, installing, and servicing wind turbines, the company is renowned for its cutting-edge technologies that optimize energy production and contribute to the overall sustainability of the energy sector. While Vestas has historically has done well in the renewable energy sector, recent market trends show fluctuations in the share price, indicating a shift in growth dynamics.
The company has a market cap. of around EUR 24 billion and has for many years been considered a well-established player in the industry. In Q3-2023 the company had revenues of 4,353 MEUR compared to 3,913 in Q3-2022. However, the company has very low margins and only made a profit of 28 MEUR vs. -147 MEUR in the comparable period. It is a bit concerning that Vestas after many years of success do not provide its shareholders with bigger profits. For 2023, the company expects revenues of 14,5 to 15,5 bnEUR with an EBIT margin of 0-2%.
TGS ASA (Nordnet) primary business provides energy data and intelligence to companies and investors across energy markets. TGS offer the world’s largest global energy data library, including seismic data, magnetic and gravity data, multi-beam and coring, digital well log and production data, wind energy data, data to identify CCS opportunities, and other types of renewable data. TGS is not a pure impact stock as they also provide services to oil and gas companies but they provide wind and solar data for companies to optimize their production from renewable energy. Furthermore, in 2022, the company also bought an equity stake in NASH Renewables, a start-up developing Software-as-a-Service (SaaS) solutions for the prospecting, construction and operations of wind energy projects (Read more)
The company has a market cap. of 18 billion NOK. The company ended Q3-2023 with 225 MUSD of revenues compared to 135 MUSD in 2022, while the net income went from -1.7 to 16.8 MUSD. The company ended Q3 with an order backlog of 752 MUSD providing them with orders for the coming years. TGS ASA is one of the few companies that has delivered a positive return year-to-date and last twelve months of 8% and 4% each.
Overview of the share price development of Vestas Wind Systems and TGS ASA year-to-date
Overview of all sectors year-to-date
The waste management sector, characterized by its essential and non-cyclical nature, often presents a stable investment opportunity with long-term potential, driven by increasing environmental awareness, regulatory demands, and the growing need for efficient waste disposal and recycling solutions. Year-to-date, Cambi ASA has significantly outperformed the rest of the sector with a 207% increase.
Overview of the return year-to-date for the stocks in the Waste Management sector
Energy Production & Storage
The Energy Production and Storage sector offers substantial investment opportunities, as it stands at the forefront of the transition towards renewable energy sources, driven by climate concerns and technological advancements. Year-to-date, only 3 stocks have delivered a positive return.
Overview of the return year-to-date for the stocks in the Energy Production & Storage sector
Energy Production Equipment & Services
The Energy Production Equipment & Services is providing technical equipment and machines to other energy producing companies such as Ørsted. The sector is to some extent influenced by oil and gas price fluctuations and industry trends. Year to date, BPC Instruments AB has performed best with a 311% increase.
Overview of the return year-to-date for the stocks in the Energy Production Equipment & Services sector
Power2X & Fuel Cells
The Power-to-X and Fuel Cells sector offers exciting investment opportunities in the evolving landscape of clean and sustainable energy technologies, but investors should also be mindful of the evolving regulatory and competitive landscape in this rapidly advancing field. Refuels NV remains only stock year-to-date with a positive return.
Overview of the return year-to-date for the stocks in the Power2X & Fuel Cells sector
Food & Beverages
The food and beverages sector is heavily driven by consumer demand and having strong brands is a major advantage. Investors should focus on considering factors such as changing consumer preferences, health and sustainability trends, and global supply chain dynamics to identify promising opportunities. Nordic Aqua Partners AS within the fish industry has delivered a return of 25%.
Overview of the return year-to-date for the stocks in the Food & Beverages sector
CO2 & Carbon Capture
The CO2 and Carbon Capture sector presents compelling investment opportunities for companies involved in capturing and removing carbon dioxide from the atmosphere. It is a small sector consisting of only 6 stocks, with Photocat A/S as the best performing year-to-date.
Overview of the return year-to-date for the stocks in the CO2 & Carbon Capture sector
The mobility sector includes among others ride-sharing platforms and the development of electric vehicles with the purpose of lowering emissions and costs for consumers while increasing flexibility. Mobility is the smallest sector we track with totalling 5 stocks. None of the companies have delivered a positive return year-to-date.
Overview of the return year-to-date for the stocks in the Mobility sector