Oracle (ORCP), Plug Power (0R1J), SIMEC (SAE): 3 penny stocks to buy

Highlights 

  • The energy crisis in the UK has impacted various companies across different industries, especially power.
  • To overcome the energy challenge, the UK government plans to move towards nuclear energy for its future energy requirement.

The energy crisis in the UK has impacted various companies across different industries. The global surge in energy prices has put an additional burden on energy company companies, with many already going bust, as rising oil and gas prices led to operational losses, making businesses unprofitable.

Rising power cost in the UK also poses inflation risk as households are forced to pay more to fulfil their energy requirement. To overcome the energy challenge, the UK government plans to move towards nuclear energy for its future energy requirement and plans to build more nuclear plants by 2050.

Let us explore 3 FTSE listed power stocks and their investment prospect:

Oracle power Plc (LON: ORCP)

FTSE AIM-listed company operates in the coal mining segment. It does the exploration and production of coal and supplies it to power plants. The company’s flagship project is located in the Sindh Province in Pakistan. The company also plans to produce green hydrogen through a renewable source at this production facility.

Green hydrogen has seen rising demand and is an important fuel source in various steel and power generation industries. The company is targeting a 400 MW hydrogen plant and has partnered with PowerChina for the project.

The company has diversified business in the mining and power industry. It has ownership of two gold mining assets in Western Australia.

Oracle power Plc shares trade at GBX 0.43, up by 26.47% on 14 October at 1:40 pm GMT+1 with a market cap of £7.79 million.

Plug Power Inc (LON: 0R1J)

The company is engaged in the design and manufacture of hydrogen and fuel cell system. In addition, it offers alternative energy solutions to its clients, like its fuel cell technology is used in electric vehicles.

The company operates in the production of green hydrogen, which is an underpenetrated sector. Also, the large-scale use of hydrogen will help meet the future energy demand. The company is working along with commercial aircraft manufacturer Airbus to develop green hydrogen technology to power aircraft for commercial use. Together with Plug Power Inc, Airbus plans to build aircraft that will fly on hydrogen instead of jet fuel. Both companies plan to fly the first zero-emission aircraft by 2035.

Plug Power Inc shares closed at USD 33.59, on 13 October with a market cap of USD 19.29 billion.

SIMEC Atlantis Energy (LON: SAE)

The company designs, operate, and maintain the power projects. It functions as a diversified, sustainable energy developer having over 1000 MW of projects under development. In addition, it also designs and manufactures tidal turbines equipment.

The company reported a decline in revenue at £5.20 million in the six months ended 30 June 2021 due to significant onshore repair costs at the MeyGen project due to unexpected outages in three of its four turbines. Also, its tidal turbine and engineering services division reported a decline after robust growth in the previous year. Also, the company has announced placing of its shares at 2.5p per share to raise proceed of £2.5 million.

SIMEC Atlantis Energy shares trade at GBX 1.73, up by 5.18% on 14 October at 1:40 pm GMT+1 with a market cap of £10.68 million.

 

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