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How Has the Pandemic Affected Renewables?

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Solar Stocks and Corona Virus

As COVID-19 swept the globe, it has put hundreds of thousands of lives at risk and threatened to collapse the world’s strongest economies. But there is always the silver lining. In this case, COVID-19 did wonders for our environment. Ducks were seen walking on streets of Paris, rivers have never been cleaner and air pollution levels were at all-time lows. So, despite the economic hit, all this mess hopefully made us realize the value of renewable energies that can maintain these benefits

Drop in global energy demand and carbon emissions

Businesses across the world were put to a halt as the lockdown measures kept half of the world’s population in quarantine. This is estimated to cause a fall in global energy demand of 6%. Consequently, this year’s carbon emissions are set to decline by around 8%.

China is the world’s largest consumer of electricity and its factory shutdowns entail that 2020 will likely have a cut in energy consumption equivalent to the amount of power used across the whole of Chile. In European countries such as the UK, Spain and Italy, where offices, factories, bars, restaurants and theaters remain closed, energy use has fallen by an average of 10%.

Surged demand for renewables

The International Energy Agency (IEA) estimates that the demand for renewables will surge. COVID-19 induced measures of social distancing and lockdown measures propeled a shift towards more reliable and cleaner sources of energy. These sources are wind, hydropower and solar photovoltaic (PV) where solar light energy is converted into electrical energy. And solar technology is just heating up for the race!

The recent drop in electricity demand fast-forwarded some power systems 10 years into the future, suddenly giving them levels of wind and solar power they wouldn’t have had otherwise without another decade of investment in renewables.

Solar companies are going full speed ahead despite short-term headwinds

Canadian Solar

Canadian Solar Inc. (NASDAQ: CSIQ) announced a partnership in 200 Megawatt Tranquility Solar Power Project with Southern Power that will acquire about 51% of the solar generation project. Canadian Solar will retain 49% ownership. It has fully financed its investment needed to complete the project through a construction and back-leveraged loan facility with a syndicate of six banks.

JinkoSolar

Last Thursday, shares of JinkoSolar (NYSE: JKS), a China-based maker of solar modules, silicon wafers, solar cells, and silicon ingots, and also a developer of solar farms, soared more than 12%. The market rejoiced that United States International Trade Commission (ITC) has cleared JinkoSolar. It ruled that its products do not infringe South Korea’s Hanwha Q CELLS’s patents. The ruling should prevent Hanwha from interfering with Jinko’s marketing of its product. It will also prevent customs officials from seizing shipments based on an intellectual property violation.

SolarEdge

COVID-19 will also not stop the growth of SolarEdge Technologies, Inc. (NASDAQ:SEDG). Although it has created some near-term headwinds, the long-term growth story is still intact. Double-digit revenue growth and steady margins for the next 5+ years seem to be in the cards for this company.

First Solar

The largest solar manufacturer, First Solar (NASDAQ:FSLR), went a step further by backing carbon pricing for wholesale electricity. It also co-founded a global policy institute to support carbon pricing as a “cost-effective, equitable and politically viable climate solution.”

Active midcaps

And don’t forget about midcaps which will be among to pull the economy ahead of the recession. HyperSolar, Inc. (OTC:HYSR) is developing a disruptive low-cost technology to produce renewable hydrogen. And it will do so by using sunlight and water. But waste water and sea water included! It’s quite active in China that accelerated the production of its renewable solar hydrogen panels.

And…

Also, there are many ‘hybrid’ companies out there such as Worksport which combines solar technology with automotive industry. Franchise International Holdings’ (OTC:FNHI) subsidiary will launch the world’s first solar tonneau covers for pickup trucks. And have no doubt, that this is only the beginning!

Outlook

Researchers are reporting the sharpest decline in greenhouse gas emissions since records began.  Let’s not throw all that away! In April, Austria and Sweden announced the closure of their last remaining coal-fired plants. On April 29th, the UK’s grid operator declared that the country had not used coal for around 18 days straight. The last time this happened was during the Industrial Revolution. The pandemic provided a boost to renewable energy sources. Overall demand expected to grow by 1% this year. Moreover, renewable electricity is expected to increase by 5%. COVID-19 is a terrible and scary enemy. But it has no say in how much the sun shines or the wind blows! All the industry needs now is stimulus, our awareness and supporting green finance to keep the ball rolling!

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be send to ivana@iamnewswire.com

BenzingaEditorial

Oil Giants Have Contrasting Approaches to the Crisis

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oil industry stocks

The oil industry was already under pressure due to the climate crisis and increasing regulation from governments to cut emissions. Now, many are wondering if the coronavirus is the last drop that will kill the oil industry and help save the planet. Analysts say that the oil and gas industry will never be the same. Without any exaggeration, oil is facing the gravest challenge in its 100-year history. Oil giants have been pushed to ‘survival mode’ and an environment of pure carnage due to plunging demand and a destructive price war.

Unprecedented times

With some labelling the situation as “apocalyptical”, the least lurid description is “unprecedented”. Oil prices have been the lowest in almost two decades, with even worse potentially on the way. This latest cyclical oil shock is hitting an industry whose days are counted. But the world’s economy and infrastructure is still heavily invested in fossil fuels to a truly staggering level. This means oil has enormous inertia. Moreover, the aspects that made us rely on oil during last hundred plus years are still around because it is still a powerful way to produce and transport energy.

The answer of Oil Giants

Dividend Aristocrats are still betting their future on oil

Chevron Corporation (NYSE: CVX) is continuing to drill for oil. Chevron and Exxon Mobil Corporation (NYSE: XOM) are certain they can still bring in a few profitable years while their European rivals are betting their future on renewables. Chief Executive Officer Mike Wirth believes the energy business is simply undergoing another of its natural transitions. Chevron is not focused on replacing oil, but rather at making oil and gas more efficient and more environmentally benign. This isn’t surprising as it is coming from someone who profits from the status quo.

It’s a multibillion-dollar gamble that would have been less surprising before the pandemic turned the whole world upside down. The risk is that the industry’s mightiest could end up being left behind by producing a lot of climate-endangering oil and gas that no one wants or needs. Wirth insists he’s comfortable with that risk, because he finds that this energy transition is simply “misunderstood.” Exxon has also reiterated its commitment to being oil’s last man standing decades from now.

Chastened BP committed to dramatically reduce oil and gas production

In sharp contract, BP p.l.c. (NYSE: BP) announced dramatic steps to address climate change on August 4. This strategy includes an unexpected vow to reduce oil and gas production 40% over the next decade. Its CEO admitted its strategy was greatly influenced by the COVID-19 crisis.

Contrasting public approaches

So far, Chevron and Exxon’s approach to climate change is in contrast to those of BP, Royal Dutch Shell (NYSE: RDS-B) (NYSE: RDS-A) and France’s Total S.A. (NYSE: TOT). All three have committed to speed up their shift to cleaner fuel sources. The aim is to align with the Paris climate agreement and become “carbon zero” by 2050.

On the other hand, Chevron and Exxon have pledged to sustain their dividends unlike BP and Royal Dutch Shell Plc that were forced cut their highly prized dividends due to the low oil prices.

Chevron and Exxon claim to support the goals of the Paris Agreement by reducing emissions, but they haven’t committed to a zero-carbon footprint. They plan to reduce emissions from their own operations but not those of their products. Their position is also politically easier in the U.S., where fossil fuels count on significant support from the Congress. Chevron and Exxon are simply avoiding the switch to a field where they have little expertise and where they perceive returns to be lower.

Business of oil may never return to ‘normal’

Shell CEO Ben van Beurden recently suggested that the oil business might never recover. BP’s Bernard Looney didn’t rule out the possibility that post-pandemic demand has already peaked. Those are horrifying news for companies that used to thrive as providers of a scarce resource that underpins the global economy. First of all, the resource is no longer scarce because of shale. BP even lowered its forecast it made two months ago by predicting that over the upcoming decades, crude prices could trend as much as 20% lower than initially thought.

Natural gas could be the answer

Natural gas is cheap these days. Its supplies also seem larger than oil reserves. Many experts are betting on natural gas to be our largest electricity provider. It is a perfect complement to solar and wind power. This is why it also makes sense to run cars on it. EVs are cleaner but their production also has an environmental footprint so they cannot solve all our problems. Another possibility is to use coal-to-liquid processes, just like what Germany did during WWII. But, it is a dirty and expensive way to increase supply. Rest assured, oil giants will explore any opportunity to keep the business afloat.

The solution could be gradual

A key question is whether the taken action is capable to alter the course of the climate crisis. Many experts are optimistic believing that the switch to renewables will provide the atmosphere the opportunity to gradually heal. The most enthusiastic ones believe 2019 will go down in history as the peak year for carbon emissions. But there are also pessimistic opinions that the fossil fuel industry will come back from the dead and that low oil prices will slow the much-needed transition to renewables.

Outlook is uncertain

Experts, including Jeff Currie at Goldman Sachs, are certain the climate change debate will take an entirely new direction. But exactly how will that look like remains to be seen. The first question is how long is the COVID-19 crisis going to last? And no one really knows the answer. But it is certain that these challenges combined are permanently altering the oil industry.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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Five Stocks That Have You Covered for EV Developments

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Electric vehicles

While lockdowns have been in place around the world due to the coronavirus pandemic, many people only ventured out on four wheels when they needed to get groceries. The International Energy Agency reported that at the end of March, road transport was down by half. Naturally, new vehicle sales have suffered. What is intriguing is that this has mainly affected cars with internal combustion engines produced by traditional automakers such as General Motors (NYSE: GM), Ford Motor (NYSE: F) and Fiat Chrysler Automobiles (NYSE: FCAU).

EVs resisted

But despite the drop in its biggest market, China, the demand for electric vehicles held up rather well. Germany topped the bill with a 148 percent increase according to Bloomberg, but then again, EVs are central to its recovery plan. Although the majority of us immediately thinks of Tesla Inc (NASDAQ:TSLA) that is showing no signs of stopping as it delivered its fourth consecutive quarter of profit despite the pandemic-induced havoc, there are other EV stocks to keep an eye on.

EV Charging Network

Miami, Florida-based Blink Charging (NASDAQ:BLNK) owns and operates an EV charging network across the U.S., Dominican Republic, Greece and Israel. It operates, maintains and tracks those EV charging stations through a cloud software.

Over its first quarter, the company enjoyed a solid growth as its revenue of $1.3 million increased 125% on a year-over-year basis. Its gross margin also improved from 9.3% to 23.8%.

Blink’s international expansion continued with its second quarter as $2.9 million in revenues during the first six months of 2020 surpassed full year 2019 revenues of $2.8 million. Product sales of EV charging equipment increased more than 350% with overall 2020 revenues increasing 120%. But it still has a long way to go to profitability as net loss amounted to $3.0 million.

A different EV

Canada-based Electrameccanica Vehicles (NASDAQ:SOLO) sells a somewhat different EV. The Solo EV might look like a regular car from the front but it has only one wheel at the back. It is a single-passenger three-wheeled, battery-powered electric vehicle that the company markets as a short-range vehicle for commuting. The Canadian group plans to expand with a plant in the U.S. In early June, it narrowed its choice to five states. Electrameccanica could easily become an acquisition target in the future. But for now, it is still a company with minimal revenue.

Exchange traded fund to cover anyone building a strong presence in the EV space

Global X Autonomous & Electric Vehicles ETF (NASDAQ:DRIV) is an exchange-traded fund that seeks to invest in companies involved in the development of autonomous vehicle technology, electric vehicles, its components and materials, such as batteries, software and hardware.

It has 75 holdings with net assets close to $30 million. Since we are still on the first pages of the EV book, many of these funds resemble broader tech ETFs. The fund’s top three holdings are none other than Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT). Tesla is also in there, of course, but in seventh place. The top ten companies account for almost one third of the fund. Year-to-date, the fund is up about 9% and it hit an all-time high of $16.25 less than a month ago.

Exchange traded fund focused at battery technology developments

Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) has 43 holdings with net assets close to $690 million. It focuses on the whole lithium cycle: from mining and refining the metal, all the way through battery production.

The main disadvantage of EVs is their hefty price tag. This figure is greatly influenced by the cost of the car battery. This is an area where lithium-ion batteries are heavily used. Therefore, anyone who believes in electrification should keep track of the developments on this front.

The fund’s top three components are Albemarle (NYSE:ALB), Tesla, and LG Chem (OTCMKTS:LGCLF). They comprise approximately 22% of the fund. More impressively, the fund is up over 37% year to date and  has hit a 52-week high at $38.71 just a month ago.

Solar power to accessorize super EVs

Worksport (OTC: WKSP) is soon to debut its line of its innovative pickup truck tonneau covers in the U.S., its biggest market.  The company’s TerraVis innovative technology has the potential to disrupt the overall automotive market as it integrated solar power into its tonneau covers. Its generator can store energy and increase the driving range of the vehicle. Moreover, Worksport’s pricing will make this complex technology affordable and accessible. Considering pickups are the #1 vehicle in the US and tonneau covers its #1 accessory, Worksport could have an interesting growth potential ahead.

Technology advancements ahead

Automakers need to find out a way to achieve economies of scale to make EVs more affordable and build a massive charging infrastructure all over the globe, which is perhaps an even more daunting task. But these stocks have what it takes to lead the way into electrification with new technological developments.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Lyft Vs Uber Is No Longer the War We’re Interested In

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Uber Stock News

On Wednesday, Lyft Inc (NASDAQ: LYFT) reported its second quarter results for the period that ended on June 30th. This was its first full quarter during the pandemic that ended the life we knew practically overnight. Not surprisingly, Lyft reported a dramatic revenue drop of 61%.

The full furry of the pandemic

The second quarter parked more than 17,000 airplanes as April passenger volume dropped 90%. Skies were empty, but so were streets and hotels. Hotel occupancy fell to 24.5% which is a US record low. World cities were quarantined. Bars, restaurants, cinemas, theatres and all popular destinations such as Walt Disney’s Corporation (NYSE: DIS) theme parks were entirely shutdown. Companies were managed from home, so employees had no need to commute by rideshare. Business travel, a growing part of the rideshare industry, is predicted to drop over 35% this year.

Lyft’s results

During the second quarter, Lyft delivered a net loss of $437.1 million. The company at least managed to beat Wall Street expectations of 99 cents per share with adjusted losses of 86 cents. Revenue of $339 million also exceeded Refinitiv’s estimate of $336.8 million. With 8.7 million active riders, it achieved a revenue per rider of $39.06. Although it did not offer any guidance, Lyft expects to achieve profitability on an adjusted basis during the fourth quarter of the following year. Unlike its primary competitor, Uber Technologies Inc (NYSE: UBER), it does not have a food delivery, freight or investments and operations overseas to help it make up for losses in travel and transportation. Thanks to Uber Eats that doubled during the pandemic, Uber managed to exceed analyst expectations. Revenue did decline, but the increased demand for its diversified services greatly amortized the blow.

But a rare bright spot for Lyft is that rides in July increased 78% compared to April. This figure provides a glimmer of hope for the undergoing quarter. But despite the good news, these 8.7 million active riders will now need to be classified as ‘employees’ which brings a whole new set of issues.

Both ride hailing giants lost the battle against CA

Uber and Lyft’s war against California is far from over but they lost the first battle. On Monday, San Francisco Superior Court judge issued a preliminary injunction requiring the gig-economy companies to reclassify their drivers as employees. This means that their drivers will be entitled to minimum wage, unemployment insurance, workers’ compensation and paid sick leave.

President and co-founder of Lyft, John Zimmer, said during the earnings call on Wednesday that the company may need to suspend its ride-hailing operations in California which makes about 16% of its rides starting on August 21 if a court does not overturn the ruling which enacted the Assembly Bill 5, commonly known as the ‘gig-workers bill’.

Reclassification of independent contractors to employees would result in higher prices, fewer available rides and hundreds of thousands of drivers losing their jobs. The resulting wages and benefits would also cost both companies, neither of which are profitable, hundreds of millions of dollars.

The future after the pandemic

Like with many travel-related industries, the demand for rideshare seemed to have disappeared into thin air back in April with Lyft and Uber seeing a severe drop between 70% and 80%. Although things are improving with eased social distancing measures, we are still far from winning the battle against COVID-19. The underlying concern is whether the fear of infection has forever changed the demand for the rideshare model? Only one thing is certain – we’re in for an entirely ‘new normal’ even once we put this pandemic behind us. Moreover, no one knows exactly how will this new normal look like.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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