In the past week, the Nordic impact sectors had mixed results once again. The sector Power2X & Fuel Cells was the best-performing sector for the second week in a row, while the mobility sector fell to the bottom (again). We take a closer look at the energy production & storage sector this week. You might want to take a closer look at two profitable developers of energy projects – one being cut more than half and the other one rising more than 400% the past 5 years. The best-performing stock delivered a 35% return the past week and the best stock of the year has surpassed 300% in YTD return.
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The Power2X & Fuel Cells became the best-performing sector for the second week in a row with a 4% return driven by a strong performance of Metacon AB. In the other end of the spectrum, the mobility sector fell 12% following a 13% decrease in the week prior to last week as well, dragged down by Move About Group AB falling 23%. Year-to-date all sectors continue to be down by double digits – and the worst sector being Mobility following following last week’s performance.
The best performing stocks have generated more than 200% in return YTD and the best performing stock, servicing the fast growing biogas sector, has generated more than 300% – trading at an all time high.
Overview of the performance of each sector the past week
Top 10 best performing impact stocks of the week
The past week, Metacon, a Swedish developer energy systems for the production of hydrogen, electricity and heat, was the best performing stock with a 35% return. Ireland-based Alternus Energy Group PLC, an owner, developer, and manager of PV parks, came in second following approval from shareholders of a business combination with Clean Earth Acquisition Corp. (Link). Minesto AB, Swedish developer of electricity prodducing solutions from tidal and ocean currents, announced succesful installation of a seabed anchor of their Dragon 12 project (Link). Year-to-date Alternus Energy Group has delivered a negative return of 44%, while Metacon and Minesto have delivered returns of 12% to 2%.
The 10 best performing stocks the past week
Energy Production & Storage – The classic impact sector
The Energy Production & Storage sector is perhaps the most obvious and classic impact sector. The companies in the sector deliver much needed solutions to one of the world’s biggest and fast-growing industry namely renewable energy. The sector includes companies focusing on producing and storing electricity that helps companies and states transform their energy reliance towards renewable energy. This includes solar and wind farms as well as hydro plants and new energy storage methods that remain a key challenge in the modern energy system. The sector offers investors an opportunity to be part of modern energy production and the next wave of transformative technologies. The sector might be perceived as being resilient through cycles due to the typically long-term cash producing nature of the assets. However, in the past year, the sector has gone through a lot of pain due to amongst other to increasing costs and higher interst rates.
The curated sector comprises of 21 companies. Year-to-date, the sector has delivered a return of -32% with only 4 companies delivering a positive return. The best-performing stock in the sector is Norwegian EAM Solar ASA delivering a 167% return. As previously mentioned, the sector has been hit the past two years by increasing the cost of development of new projects mainly due to increasing commodity prices and interest rates. But if the interest rate and commodity prices either fall or remain at the same level, it should ease the pressure in the sector creating room for new opportunities for investors in the sector.
Year-to-Date return for Energy Production & Storage stocks
A large and a successfull energy producing company
Ørsted A/S (Nordnet) is the second-largest stock of the Nordic impact stocks we track with a market cap. of 148 BNDKK and an an enterprise value of 194 BNDKK. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. With a commitment to combating climate change, Ørsted plays a crucial role in advancing the transition to a more sustainable and carbon-neutral future. The company’s dedication to innovation and environmental responsibility has positioned it as a key player in the global energy revolution. However, Ørsted has been hit hard by the current macro environment.
For the first nine months of 2023, the company delivered revenues of 65 BNDKK compared to 97 BNDKK for the same period in 2022. Furthermore, net profit fell from 9.4 BNDKK to -22.6 BNDKK. Ørsted has faced major issues with rising interest rates, inflation, and supply chain issues, resulting in halted US projects and impairment costs of 28.4 BNDKK. The firm currently has 15.7 GW of installed capacity, 5.3 GW under construction, and an additional 9.8 GW of awarded and contracted projects. Ørsted has performed poorly year-to-date with a negative return of 43%.
Magnora ASA (Nordnet) is one of the success stories in the industry with a return of more than 400% in the past 5 years. Magnora invests in renewable energy solutions, such as wind and solar power. The company is active in the entire value chain, from the identification of investment opportunities to the completetment phase. The company owns shares of other companies such as 40% of Helios, 45% of KustVind, 80% of Magnora Offshore Wind, etc. Magnora operates worldwide, with the largest presence in the Nordic market.
The company has a market cap. of 2 BNNOK with an enterprise value of 1.6 BNNOK meaning they have a positive net cash position. In the first nine months of 2023, they delivered revenues of 22.7 MNOK vs. 13.5 MNOK in the prior year. However, most interesting, the net income rose to 195 MNOK from -50 MNOK due to divestments. Magnoras portfolio companies have a total portfolio of 6.7 GW in development projects.
Overview of the share price development of Ørsted A/S and Magnora ASA the past year
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 212% 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 4 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, delivering technologies and services to biogas plants, has performed the best with a 332% increase – the best performance of all the Nordic Impact stocks, and is trading at an all time high.
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 and Metacon AB are the only stocks 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 26%.
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