SYDNEY, Dec. 1, 2020 /PRNewswire/ — Kalkine Pty Limited is pleased to announce the launch of its new ‘Global Green Energy Report’. Green energy presents earnings potential given the push from authorities to cut carbon-emission, increasing capacity additions, cost drive-downs at solar photovoltaics’, and higher budget-allocation.
Green energy utilizes renewable resources including solar, wind, hydro, geothermal, biomass, etc. to help relieve the issues around climate-change.
The big question is will Green Economy be a Reality or an Illusion? Economic growth and environmental sustainability may co-exist as a new future for the planet post-COVID-19.
Recovering from March-lows, Independent Power Producers globally recorded new highs in October-2020. Selected wind and solar operators also witnessed an all-time high, given strong order-backlogs.
The S&P Global Clean Energy Index reported 99.37% YTD returns outperforming S&P Global 1200 Index by a whopping 90.00% (November 27, 2020, spglobal.com).
Global Green Energy Space Booming
While the pandemic has impacted fossil fuels, the net new renewable energy capacity addition globally may reach a record level in 2021. With 80+ listed renewable energy stocks worth over US$1.1trillion (November-end 2020, Refinitiv), the US is one of the main markets with ~30 states generating electricity from clean energy. Similar trends have been witnessed for countries including Australia, UK, Canada, and New Zealand.
Though some risks prevail like uncertain US production-tax credits, elevated debt levels which may impact the Capex and financing flexibility, etc., still immense investment opportunities exist.
Considering above, Kalkine’s Green Energy Report Offer(s) Stocks with:
- Strong Fundamentals: Listed companies with steady revenue streams and stable cash flows generally driven by long-term electricity contracts with a feed-in tariff structure. Other factors considered for respective stocks include capacity and utilization, healthy gross margins, adequate liquidity, ROE, and decent dividend yields.
- Diversification: Wide-exposure to sub-sectors including electricity generation, utilities, refining, marketing, transportation, equipment manufacturing, and service providers.
- Businesses Tethering on Regulatory Compliance: Track-record of prudent regulatory compliance and well-qualified management team.
- Global Scale: Businesses that can leverage global-scale to lower the equipment and operating costs.
To summarize, this report is easy to comprehend with deep-insights and aims to cover stocks after an overall assessment of the global demand and supply scenario, recent events, outlook, valuation, and risks, etc.
Note: Kalkine’s publications are NOT a solicitation/recommendation to buy, sell, or hold stock(s) of company/companies or engage in any investment activity under discussion.