Norne Daily

Key Takeaways

Markets

  • Most Asian stocks rose and the dollar slipped as a report that developer China Evergrande Group pulled back from the brink of default aided sentiment
  • Nikkei Index +0.4%; Shanghai Index +0.1%; Hang Seng Index +0.4%
    • Global stocks are set for a third weekly advance, helped by the ongoing global recovery from the health crisis
    • The rally is being shadowed by the prospect of a faster-than-expected tightening of monetary policy to curb inflation, which is being stoked by an energy crunch and creaking supply chains
  • The 10-year U.S. Treasury yield fell below 1.70% but remains higher for the week
    • The Federal Reserve is nearing a reduction in bond purchases and traders are ramping up bets on rate hikes to quell price pressures
  • Snap’s outlook included a warning that global supply-chain issues are weighing on advertising spending
    • Shares in other tech firms exposed to digital advertising, like Facebook Inc. and Twitter Inc., weakened in late trading
  • S&P 500 Index +0.3%; Nasdaq Index +0.6% yesterday
  • Biden said he doesn’t think there are enough Democratic votes to raise tax rates in a deal on that agenda, but that he believes he’ll reach an agreement on the overall legislative package
    • A White House official said Biden was referring only to corporate tax rate increases

 

Commodities

  • Brent for December is down USD 0.5/b at USD 84.2/b this morning after decreasing USD 1.2/b the last trading day
  • Oil prices fell as demand for oil products in power generation cooled off amid easing coal and gas prices, while a forecast for a mild U.S. winter also weighed on the market
    • Winter weather in much of the United States is expected to be warmer than average, according to a National Oceanic and Atmospheric Administration forecast
  • The urea market saw less dramatic moves over the past week than it was usual a number of weeks before. However, the market remains firm. Key takeaways from the latest Profercy report:
    • The impact of Chinese export controls is now starting to be felt… buyers partially or wholly reliant on Chinese urea have been checking other origins for November and December shipments and receiving few offers.
    • India is yet to return to the market but will face the same challenge when it does.
    • European buyers have also paused for breath after a tumultuous few months. Forward gas prices are still at elevated levels, with production cutbacks and curtailments still cause for concern.
    • With India behind and available supply well below previous years in the east and west, the outlook for the rest of the year remains positive for producers. Demand deferral and destruction could calm the market, but it is unlikely to undermine the potential for further price gains for at least the next 30 days.

Company & Sector News

  • First All-In-One Liquid Cooling Solutions from Razer Incorporate Asetek’s Advanced Liquid Cooling Technology
    • Asetek, the creator of the all-in-one liquid (AIO) cooler and the global leader in liquid cooling solutions for gaming PCs and DIY enthusiasts, announced today that Razer has introduced its first AIO CPU coolers, leveraging the superior thermal and acoustic performance and reliability associated with Asetek’s advanced liquid cooling technology
    • The Razer Hanbo AIO liquid coolers provide advanced CPU overclocking capability, RGB lighting, and virtually silent operation to gamers, tech enthusiasts and eSports pros
    • When defining its initial component solutions, Razer looked to Asetek to provide targeted liquid cooling of CPUs, in a simple to install closed-loop solution
    • The Razer Hanbo AIO Coolers will also support Razer’s ChromaT software for simple and easy-to-use personalization plus seamless integration with existing RGB gear
  • Cloudberry Clean Energy – Update on Stenkalles Grund project in Swedish Lake Vänern
    • Recent events have presented Cloudberry Clean Energy with the opportunity to retain a bigger stake in the Stenkalles Grund shallow water wind project in Lake Vänern, Sweden’s largest inland lake and thereby the prospect of improving Cloudberry’s overall project economics
    • Assessments of the project and discussions with potential wind turbine suppliers have identified several opportunities to improve project economics of the 100 MW shallow water development
    • With this prospect in sight, the Company has decided to postpone final investment decision until mid-year 2022
      • As a result of this, the target commercial operation date of the project has been postponed from H2 2023 until 2024
    • The new timeline will allow the Company’s new business segment Cloudberry Offshore Wind, headed by newly appointed Charlotte Bergquist, more time to optimize and integrate the project in the offshore wind portfolio
  • Nordic Rutile wins court case against Artic Mineral Resources
    • Oslo District Court has today ruled in favour of Nordic Rutile
    • The ruling rejects AMR’s claim for exclusive right to the garnet on the Vevring side of the Engebø deposit and that Nordic Rutile has no rights to the said garnet
  • Frøy – CFO steps down
    • CFO in Frøy Arne Rødsjø has decided to step down from his position
      • Tore Helgesen will take up the position as interim CFO until a permanent solution is found. Mr. Rødsjø will assist with the transition
    • The new interim CFO, Mr. Helgesen, has a master’s degree in economics and is a state-authorized public accountant from the Norwegian School of Economics (NHH) in Bergen
      • Tore has worked for almost 20 years in auditing and consulting and was a partner in PwC in the period 2007-2017
  • TOM Q3 Results:
    • Tomra received an ebita of NOK 529 million in the third quarter of 2021, compared with NOK 501 million in the same quarter last year
    • Profit before tax was NOK 466 million in the quarter (403)
    • Operating revenues of NOK 2,883 million (2,578)
  • NSKOG Q3 Results:
    • Norske Skog received an EBITDA of NOK 111 million in the third quarter of 2021, compared with NOK 73 million in the same period last year
    • The company had an operating profit of NOK -565 million in the quarter (-31)                                 
    • Operating revenues of NOK 2,642 million (2,199)
    • The Ebitda margin was 4.2 percent in the quarter (3.3)
  • Observe Medical: Sippi® clinical rollout accelerates, and clinical evaluations driving the health economic value of Sippi®
    • Observe Medical continues its rollout of Sippi®, and reports clinical implementation at several sites in Europe – including use outside intensive care units, and clinical evaluations driving the health economic value of Sippi®
    • Significant developments are ongoing in a range of markets
    • Italy: The implementation of Sippi® connected to the PDMS system Digistat® in a major Italy hospital progresses well alongside the ongoing pilot clinical use
    • Finland: A clinical site using Sippi® since several years will now connect their Sippi® systems in the Intensive Care Unit to their PDMS system
    • Poland: Observe Medical’s distributing partner, Skamex, recently held a successful pre-launch event of Sippi® at a major intensive care conference in Poland, and in November Sippi® will be introduced to several reference clinics in Poland
    • Sweden: At Nya Karolinska Hospital in Stockholm Sippi® will be implemented at the Intermediary ward later this year
  • HydrogenPro– Air Liquide takes complete ownership of H2V’s Normandy project
    • HydrogenPro AS H2V has sold the remaining ownership of the Normandy hydrogen project, initially planned for 100MW, to Air Liquide
    • This transaction was announced by Air Liquide in a news release issued Wednesday evening on 20 October 2021. Consequently, H2V has formally notified HydrogenPro that the ongoing co-operation on the Normandy project will cease
    • The announced transaction has no impact on HydrogenPro’s work with H2V to mature the Dunkirk green hydrogen project, also initially for 100MW
    • The companies continue to mature the project and a public hearing is currently ongoing locally, with final public approval expected to be given during Q1 2022
  • HSPG – Q3 Results:
    • 3Q NII was delivered as expected and 2% up QoQ
    • Fee income was reported spot on our estimate and was up 10% YoY
    • However, total costs came 12% higher than expected and 18% up YoY. This was influenced by one-off costs related to the conversion to a different date center, as well as some extraordinary rent costs, but exact amount was not specified in the report
    • Loan losses were reported at NOK 4.0m, above our estimate of NOK 2.6m
    • The unconsolidated CET1 ratio (incl. 50% of YTD profit) was at 16.5%
    • 3Q ROE came at 7.3%, weaker than we have expected, additionally influenced by losses on financial instruments

Norne Daily embedded slides

Norne-Daily-22.10.2021