BW Energy is one of the most undervalued stock i have found in the oil industry listed in Norway. The company have one large shareholder, BW Group, which owns about 75% of BWE. This could be one of the reasons why BWE is low priced. Some might be afraid that they will buy 100% of the company at a low price. I believe (and hope) that they understand the importance of pleasing external shareholders.
The BW Group is a top-level experienced industrial builder of value over time, whith many different companies (BW Offshore, BW LPG, BW Epic Cosan ++). My take is that the Groups long-time operational experience and financial muscles reduces the risk for BWE, compared to other stand-alone companies.
BW Energy have until 2024 developed slower than the market. But they have steady progress, and build value for each Q presentation. Now (end of october 2024), I think they are all set to boost their oil production. And with a large shareholder who owns 75%, it might be tight through the door when the market wants to take part of the fast and steadily increasing free cash flow in the coming months and years.
How well do narratives help inform your perspective?
