Tuesday, June 6

Shares in the renewable sector are still in the pit

The change of year has not brought a turn in what refers to the price of energy companies. Renewable energy companies maintain their disagreement with investors who, instead, continue to be charmed by fossil fuel companies in the year that has just begun.

In this way, it seems that investors have completely disassociated themselves from the attempt by the authorities on both sides of the Atlantic to promote environmental policies, of which renewable energies are an important part.

This can easily be seen by checking the evolution of indices such as the European Renewable Energy Index, which is down more than 10 percent so far this year and is trading close to October 2020 levels after down around 33 percent. last year.

The oil companies maintain their idyll with the market

In a very different situation are indices of fossil fuel companies such as the Stoxx 600 Oil & Gas index, which is revalued by more than 7 percent, boosted by the good evolution of crude oil, which is up 12 percent so far this year. 2022 and more than 55 percent in the last twelve months.

Among the reasons that explain this situation are, on the one hand, the high valuations acquired by renewable energy producing companies in 2020, a stellar year for the stock market sector.

Likewise, the forecast of rate hikes also affects them negatively, as they are companies that have to resort to leverage to start up their parks.

Finally, rising input costs are weighing on margins.

Falls in the values ​​of the sector on both sides of the Atlantic

By values, this trend can also be clearly seen.

Thus, among the listed companies on the American stock market that have risen the most so far this year, stand out Schlumberger (the world’s largest oilfield services company, with a rise of 23 percent); Halliburton, with a revaluation of 23 percent; the patroleras Hess and Occidental Petroleum (which climb 20 percent); Exxon Mobile (up 19 percent) and ConocoPhillips (up 18 percent).

In Europe, the same is happening, with companies like Royal Dutch Shell or Galp rising 12 percent; Total or Lundin Energy, 11 percent; and Eni, 7 percent.

Somewhat lagging behind although on positive ground is the Spanish Repsol, whose revaluation remains at 2 percent.

The manufacturers of wind turbines, in the pillory

On the opposite side of the table, everything that sounds renewable is penalized, not only energy producers but also wind turbine manufacturers such as Siemens-Gamesa (which gives up 19 percent) or its Danish competitor Vestas, which leaves a 9 percent.

And it is a global trend.

Thus, in Spain, Acciona Renewable Energies falls 11 percent in the year; Solaria loses almost 9 percent; Grenergy, 6 percent; and Soltec, almost 5 percent.

Audax Renovables is saved, which rises 0.40 percent and Ecoener, which increases its price by 2.5 percent.

In Europe, Orsted and SMA yield 13 percent; Meyer Burger Technology, 15 percent and Albioma falls 4 percent, to give a few examples.

This situation is also observed in the United States., with companies like West Holdings, Shoals Technologies, Array Technologies and Enphase Energy giving up almost 40 percent, 30 percent, 27 percent, 26 percent. respectively.

It so happens that all of them operate in the solar energy business.