ESG27 May 2021 14:36
Guys thinking out loud here...
KRG issues aside, this ESG craze is biting into O&G and especially pure play E&Ps like Genel. We've been at $60-$70 range consistently for a long while now but valuations seem to go nowhere. This is not an overall commodities are cheap across the board thing anymore coz Miners and Agri equities have had a pretty decent run whereas O&G seems to be underperforming.
Investors, Funds, and banks now have ESG mandates and regardless of cash generative nature of O&G companies, they refuse pour in fresh capital into the sector especially not in Oil and pure-plays (maybe Gas at best and that's contingent to having an ESG plan).
Having said that, i'm not saying Genel is a bad company or SP will go to 0 or sth but upside is very limited simply since big money which traditionally pushed equities up during up cycles is no longer there.
i've personally got quite a bit of money on this (at £1 a share) and loving the dividends but i'm starting to think about an exit plan.
Any thoughts?