In today’s briefing:
- Kunlun Energy (135 HK): Remains Very Decent
- Gold’s Tactical Outlook and Profit Targets: Currently Peaking, But Pullback Is a Buy Opportunity
- MPLX LP: An Insight Into Its Natural Gas and NGL Value Chain Expansion & Critical Growth Levers!
- Asia base oils demand outlook: Week of 24 March
- Americas/EMEA base oils demand outlook: Week of 24 March
- Sustainable Investing Surveyor: Focus on Clean Energy Fuels (CLNE)
- Mongolia Mining 975 HK: FY24 Results and Concall, Some Clarity Provided On The Mining Issue
- Valeura Energy (TSX: VLE): FY24 Results in Line. Additional Reserves Expected in Early 2Q25
- West China Cement – Deterioration in Earnings and Leverage Continues
- Global base oils arb outlook: Week of 24 March
Kunlun Energy (135 HK): Remains Very Decent
- Kunlun Energy (135 HK)‘s net profit grew 7.9% in 2H24, accelerating from 2.6% in 1H24. It is encouraging to see the dividend payout ratio increase by 2pp YoY.
- An increase in the adoption of the residential price linkage system is positive for the dollar margin, while the distortion from E&P expiry will no longer impact earnings.
- With net cash equals HK$2.56/share, or 31% of the share price, such financial strength is unmatched by peers. Its PER valuations are also inexpensive.
Gold’s Tactical Outlook and Profit Targets: Currently Peaking, But Pullback Is a Buy Opportunity
- Gold (GOLD COMDTY) has been rallying up without stop for the past 13 weeks (only pause was a 1 week pullback at the end of February).
- The commodity looks overbought WEEKLY according to our tactical model, there is a chance that it will pullback this week or the next (although it could rally for longer…).
- Several players are buying Gold (GOLD COMDTY) and we do not see any sharp pullback on the horizon, obviously, any pullback is a BUY opportunity. We’ll discuss where to buy.
MPLX LP: An Insight Into Its Natural Gas and NGL Value Chain Expansion & Critical Growth Levers!
- MPLX, the midstream energy company, reported its fourth quarter and full-year 2024 results, highlighting strategic progress and robust financial performance.
- In 2024, MPLX achieved a full-year adjusted EBITDA of $6.8 billion, marking an 8% rise compared to the previous year, underpinned by strong operational performance across its renamed business segments: Crude Oil and Product Logistics and Natural Gas and NGL Services.
- This marks the fourth consecutive year of mid-single-digit adjusted EBITDA growth, with a compound annual growth rate of 7% since 2021.
Asia base oils demand outlook: Week of 24 March
- Asia’s base oils demand could hold steady even with high heavy-grade prices and seasonal slowdown in consumption at start of Q2 2025.
- Asia’s lube demand likely to peak in month of March, before holding at lower levels over following months.
- Lube demand in Q2 2025 likely to remain well above levels in Q1 2025 even with slowdown at start of Q2 2025.
Americas/EMEA base oils demand outlook: Week of 24 March
- US base oils demand likely to get support from seasonal pick-up in requirements that coincides with round of plant maintenance work.
- Mostly-steady outright base oils prices so far this year contrast with higher prices in other markets.
- Steady export base oils values vs VGO so far this year contrast with slump, then surge in base oils values from H2 March 2024.
Sustainable Investing Surveyor: Focus on Clean Energy Fuels (CLNE)
- The WTR Sustainable Index was down 0.3% W/W versus the S&P 500 Index (up 0.5%), the Russell 2000 Index (up 0.6%), and the Nasdaq Index (up 0.3%).
- Energy Technology (13.0% of the index) was up 0.3%, while Industrial Climate and Ag Technology (45.7% of the index) was down 0.2%, ClimateTech Mining was down 0.5%, and Advanced Transportation Solutions (22.0% of the index) was down 0.6%.
- Top 10 Performers: VVPR, LITM, LAZR, AEVA, FHYD, EGT, WUC, NIU, SOL, AZRE
Mongolia Mining 975 HK: FY24 Results and Concall, Some Clarity Provided On The Mining Issue
- Mongolian Mining (975 HK) disclosed its fiscal year 2024 results, which exceeded market expectations marginally, showing YoY increases in revenue and profits of 0.4% and 1.2%, respectively.
- The company indicated that the Working Group formed under Prime Minister’s Order No. 32 encompasses all national miners, not just MMCs alone.
- Mining Law 5.4 may result in the government taking a 50% stake in the mining companies whose deposits were state-funded or increasing the mining royalty nationwide.
Valeura Energy (TSX: VLE): FY24 Results in Line. Additional Reserves Expected in Early 2Q25
- FY24 production, YE24 reserves and YE24 net cash had been reported previously.
- The FY25 guidance has been re-iterated.
- Production in March to date at Manora was 2.9 mbbl/d.
West China Cement – Deterioration in Earnings and Leverage Continues
- West China Cement’s (WCC) FY 2024 results remained weak, albeit slightly improved from H1.
- Sales volumes and ASP in Mainland China continued to decline, amid poor demand from the real estate and infrastructure sectors.
- Meanwhile, performance in Africa was mixed, as rising sales volumes were offset by softer ASP.
Global base oils arb outlook: Week of 24 March
- Europe’s Group II base oils prices rise vs prices in US and Asia in March 2025.
- Europe’s Group I brightstock price rises vs prices in US and Asia in March 2025.
- Outperformance of Europe base oils prices vs prices in US and Asia points to firmer supply-demand fundamentals in Europe than in those other markets.
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