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Energy infrastructure for a sustainable future: Hold

KG
kgmaik89Not Invested
Community Contributor

Published

October 22 2024

Updated

October 23 2024

Narratives are currently in beta

  • strong economic moat: no competitor, Licensed by the state - very profitable business (Net Margin > 30%)
  • Risk: uncertain future gas transition demand due to reduction of fossil fuel usage (-5...15 % 2023-2027)
  • Chance: multi molecule gas plattform (H2, CO2, Biomethane) -> Prepare Infrastructure (Backbone, industry enabler), Ruxit -> more LNG, gas from Africa -> access EU via meditarian sea
  • highly capitel intesiv (huge Capex), onging Investments (H2 ready -> H2 proof, CCS Ravenna, Biomethan platform, Duel Fuel compressor stations, methan leakage monitoring, Iot, Digitaliziation ...), 40 % EU Taxonomie conform
  • Critical infrastructure: H2/CCS Transition in Europe, diversified (stake in few european pipline operator)
  • South H2 corridor (3300 km): Most cost-effective corridor (€ 0.4-0.6/kg to Germany) with embedded line pack storage
  • Baa2, BBB+, Italy has 30% stake

How well do narratives help inform your perspective?

Disclaimer

The user kgmaik89 holds no position in DB:SNM. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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Fair Value
€5.1
17.0% undervalued intrinsic discount
kgmaik89's Fair Value
Future estimation in
PastFuture01b2b3b4b5b20132016201920222024202520282029Revenue €5.6bEarnings €1.7b
% p.a.
Decrease
Increase
Current revenue growth rate
3.96%
Gas Utilities revenue growth rate
0.31%