- Suncor Energy Inc. is set to reduce its carbon capture costs after investment in Svante.
- Solar Alliance Energy Inc. will gain from Investment Tax Credit (ITC) for solar projects in the US.
- S&P/TSX Capped Energy Index has posted a whopping 81.44 per cent one-year return.
The S&P/TSX Capped Energy Index returned 23.85 per cent YTD return (as of April 20, 2021), and the 1-Year return is a whopping 81.44 per cent. The index constitutes companies from energy sector with an imposed capped weight on each constituent.
Here, let’s delve into two trending stocks from energy sector.
Suncor Energy Inc. (TSX:SU)
This dividend-paying energy stock has advanced over 68 per cent in the last six months. The scrips closed at C$25.45 on April 21 and are 78+ per cent up from its 52-week low of C$ 14.28, recorded on October 29, 2020.
However, they are just 13.87 per cent down from its 52-week high of C$ 29.55, recorded on March 15 this year. The high came after the company invested in Svante, a carbon capture technology provider, last month. The funding will help Suncor Energy in reducing its carbon emissions and produce blue hydrogen. Significant reduction in costs to capture carbon is anticipated.
The stocks have advanced over 23 per cent year-to-date and are among the most active companies on the Toronto Stock Exchange.
In Q4 2020, Suncor’s operating loss reduced to C$142 million from C$302 million a quarter ago.
The company could also reduce its net loss to C$168 million in Q4 2020, as against C$2.335 billion loss in Q4 2019.
It achieved its operating cost reduction target and trimmed its capital expenditures by C$1.9 billion in 2020.
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Solar Alliance Energy Inc. (TSXV:SOLR)
Solar Alliance is an upcoming player in the rooftop solar system installation segment, and it provides services to residential, commercial and industrial customers. The company is yet to declare dividend to its shareholders.
The stocks have skyrocketed by a whopping 1100 per cent in the last one-year and 215 per cent year-to-date. However, they are down over 26 per cent in the last one month, giving investors an entry point in this advancing stock.
In March, Solar Alliance signed a US$60 million agreement with Green Data Centre Real Estate for a detailed feasibility analysis on a 56-MW project in Illinois. It also anticipates gaining from the American Jobs Plan outlined by US President Joe Biden that will see an expanded Investment Tax Credit for projects in solar energy space.
The audited financial statements of Solar Alliance Energy Inc. for year ending 2020 will be out by the last week of April 2020. The company has reported that its revenue in Q3 2020 was better than Q3 2019.
The revenue for the nine months ending September 30, 2020, was C$2.5 million, up 95 per cent year-over-year. Gross profit stood at C$0.76 million for the same period, an increase of 286 per cent from 2019.