Daily Brief Energy/Materials: Dongjin Semichem, JX Advanced Metals, Uranium, SGX Rubber Future TSR20, Nickel Industries , Petroleo Brasileiro , APA , Gold, Frontline , Eog Resources and more

• After the death of Dongjin Semichem’s founder Lee on 25 February, the company has yet to reveal the details of the succession plan.
• There is a potential for a family feud between the two sons of founder Lee if indeed there was no will directing the late chairman Lee’s ownership of Dongjin Holdings.
• A potential family feud for the control of Dongjin Semichem could lead to a grab for shares by both the family members as well as the general investors.

• JX Advanced Metals (5016 JP)’s parent, ENEOS Holdings (5020 JP), raised around US$2.5bn via selling more than half of its stake in JXAM in its Japan IPO.
• JXAM engages in business activities primarily focused on the development, manufacture and sale of materials made from copper and rare metals, which are used in the semiconductor and ICT fields.
• We have covered various aspects of the deal in our previous notes. In this note, we will talk about the trading dynamics.

• The conversation focuses on the current state of the uranium market, with a emphasis on short interest and sentiment towards uranium stocks.
• Guy discusses the reasons behind the consensus short uranium position among hedge funds, and how it originated from thematic responses and shifts in the market.
• Despite the negative sentiment and high short interest, Guy remains optimistic about the potential for a sentiment shift in the uranium market.

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•  Dumping of gloves from Malaysia, Thailand, Vietnam into India alleged  
•  IRGMA petitions Indian Government for intervention to stop  
• DGTR recommends ADD on imports of titanium dioxide from China

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Nickel Industries, West China Cement, China Hongqiao
• In the US, the March (preliminary) University of Michigan consumer sentiment fell to 57.9 (63.0 e / 64.7 p), declining for three consecutive months and reaching the lowest level since November 2022.
• Many consumers cited the high uncertainty around policy and other economic factors, as frequent gyrations in economic policies make it very difficult for consumers to plan for the future, according to Surveys of Consumers director Joanne Hsu.

• Petróleo Brasileiro S.A., also known as Petrobras, delivered an impressive operational performance in 2024, showing strong cash generation and substantial investment while facing certain external challenges.
• The company’s operational cash flow reached an impressive BRL 204 billion, showcasing its capability to generate significant resources and enhance financial robustness.
• Despite global challenges, including a decline in Brent crude prices and a 40% drop in diesel crack spread, Petrobras maintained strong financial health with its financial debt reduced to the lowest level since 2008, at BRL 23 billion.

• APA Corporation reported its fourth-quarter and year-end 2024 financial and operational results, demonstrating both strategic progress and ongoing challenges.
• The company has been focusing on strengthening its portfolio, primarily in the Permian Basin and Egypt, while also advancing its exploration activities in Suriname.
• Positively, APA Corporation has successfully reshaped its business by acquiring assets in the Permian Basin and finalizing a gas price agreement in Egypt, facilitating additional drilling opportunities.

• As of today, we’re still short cotton, but we see a major potential reversal pattern brewing in the market.
• A worsening economic outlook provided major headwinds to the price of cotton during the past few couple of months.
• Overall, the market has corrected more than 50% since Q2 of 2022.

• Frontline plc, a prominent player in the tanker industry, recently held its fourth quarter 2024 results conference.
• The discussion highlighted the company’s financial performance, fleet status, market conditions, and potential future impacts of geopolitical factors affecting the global oil trade.
• In terms of financial performance, Frontline reported a profit of $66.7 million for the quarter, translating to $0.30 per share, while the adjusted profit stood at $45.1 million or $0.20 per share.

• EOG Resources has reported its financial performance for the fourth quarter and full year of 2024, reflecting a year of substantial achievement and strategic investment across various fronts.
• EOG Resources has managed to exceed its prior production forecasts, maintain capital discipline, and achieve significant shareholder returns despite industry volatility.
• Notably, the company achieved a 25% return on capital employed, demonstrating its operational efficiency and financial robustness.