It’s the day ofof WPL’s 2019 Annual report coming out, looking forward reading that.
For my first posting,15/1/18, I took a bit of heat for being WPL detractor, which is not the case, Ilove WPL, blue chip company, well run, still just think they’ve lost theirgrowth mojo under Coleman’s 8 year tenure, he has to go, and will soon, eitherway. Lots of talk, but no “real” tangible near term action, a long ways from actualsignificant growth fruition. I’ve just tried to give a balanced view, as I foundmost of this blog mostly only discusses the upside, and everything is rosy inthe garden.
Due the wrath, accusedof not being factual, my 2nd and last post, 20/1/18, was based onthe only available at the time 2016 Annual Report.
So since mylast post, ($33.59,) where is WPL share price, now sitting $33.86. Growth of0.8%, trading sideways.
Whereas saySTO, Jan 2018, $5.20, now sitting at $8.13. Growth of 56%.
And FMG, (rustyrocks, and now market cap bigger than WPL,) Jan 2018, $5.10, now sitting at$11.10. Growth of 117%.
That’s reallythe point I was trying to share January 2018. You could have taken your WPLinvestment, put it in real growth story stocks, and nip back into WPL, when thegrowth really does start to kick in, 2023, 2024 onwards.
Strange timesin the Energy Industry, as with others, incredible changes in only two yearssince my last posting.
The Greta Syndrome,global environmental hysteria, re global warming, which now has irreversibletraction and pace, the worker bees no longer happy, seeking change from their governments.WA EPA heading to set carbon emissions and offsets, WA net-zero emission by2050. The government can only stall for so long.Pluto Train II, FID H2 2020,“The EPA is alsoassessing what Woodside will do to manage air quality on the Burrup Peninsulawhere pollution could possibly damage ancient Aboriginal rock art that theFederal government put up for world heritage listing in January.” Karratha air quality, CO2, aboriginal art, etc.
We’vewitnessed the Energy Industry, go from Big Oil, go to Oil & Gas, go to Gas & Oil over the last 4 or5 decades. I believe in the next 1 to 2 decades G&O will transition into H2,and LHG. For those nimble on their feet, massive global opportunities. I thinkBig Oil is in a sunset phase, whilst renewables and H2 is in a sun rising phase.This is evident with Big Oil globally selling assets (, while they can,) andretreating to home base, or to less governed regions, West Coast of Africa,etc. Norwegian and other sovereign funds mandating pulling out of fossil fuel BigOil Co's. PWC see a 600Bn industry in green flossing Big Oil & Co, to keepthose greenies at bay. But it will only delay the movement. What did Colemansay the other day, Oil & Gas is the new tobacco industry, and taking a pokein the eye.
Veryrecently, Natural Gas/LNG was to be the transition energy from coal/oil torenewables. That story seems to have rapidly changed, e.g. UK planning bans ondiesel and petrol cars from 2035, hybrid vehicles, UK now generating over 50%of power requirements for over a 5 day periods with renewables. There areenvironmental head winds ahead, combined with the trending and collapse of LNGprice, and oil price, with market over supply. And a market desire (, China,Japan, South Korea,) to move to H2 as quickly as possible. That’s before youfactor in Covid-19 whatever that brings us.
Afterthe 2014 slump in Big Oil CAPEX investment, there’s now a race to get it outthe ground whilst it’s worth something and wanted. Planned for 65 new FPSO’s tocome on stream before 2025.
Times are a changing, that’s for sure.
(20min delay)