Shares of companies in the solar energy business have fallen in the stock market this year, weakened mainly by the preference for cheaper inputs and weak profit margins.
On the Madrid Stock Exchange, in 2021, the shares of Solaria Energía y Medio Ambiente, a multinational dedicated to the renewable energy sector, fell 25.42% to 17.63 euros per unit, while Iberdrola lost 11.95% to 9.94 euros on the IBEX- 35.
In Germany, the shares of SMA Solar, manufacturer of inverters for photovoltaic solar energy, lost 31.08% in the year, in addition to still not exceeding its 2020 sales, which were for 1,026.6 million euros.
Siemens Energy, one of the four companies in which the Siemens conglomerate was divided, has a drop of 24.43%, while on the Milan Stock Exchange, energy company Enel lost 17.30%, weakened by the increase in demand for oil and gas natural, whose prices soared sharply in 2021.
On Wall Street, Duke Energy and NextEra Energy registered mixed results, with a 8.06% drop for the former and a 17.69% rise for the latter.
Amin Vera, Deputy Director of Economic Analysis at Black Wallstreet Capital, said that “renewable energy companies usually have cash flow and investment that go by projects, which are generally financed with debt to build the infrastructure, and that debt is amortized in average in 20 or even 30 years ”.
The returns of the European stock markets have been more punished than on Wall Street, due to the pandemic by Covid-19 and its variants Delta and Ómicron, which have made shareholders nervous. The Madrid Ibex 35 has gained 4.77% so far this year, the German Dax is up 13.67%, while the NASDAQ Composite index has a 20.43% yield in 2021.
“In a scenario where the stock market is down or very flat, companies with higher debt are generally hit harder than the average,” added Amin Vera.
The BWC specialist assured that “the fact is that the cheapest energy is bought first, in the rest of the world, fossil energy tends to be cheaper than renewable energy. Although there is a debate on subsidizing renewable energy or taxing fossil fuels, the latter will be cheaper ”.
In 2020, oil prices fell dramatically. The American West Texas Intermediate lost 20.54% and the Brent of the North Sea fell 21.52 percent. But this year they have recovered, with increases of 49.96% for WTI and 45.35% for Brent.
I was doing green energy in Mexico
In Mexico, some companies that have sought sustainable solutions in power generation to supply their food production and manufacturing lines are, among others, Alsea, Bimbo, Cemex, FEMSA, Cuervo and Walmart de México (Walmex).
Grupo Bimbo issued in November 2018 the first Clean Energy Certificates for distributed generation; Soriana affirmed that for this year all its business units would operate with renewable energy; and Walmex acquired energy from wind farms for self-supply.
In 2012 there were 1,986 solar roof installations in Mexico, and in 2020 there were 94,844, adding an installed capacity of 692 MW, according to data from the Energy Regulatory Commission.
Reference-www.eleconomista.com.mx