Investments-Flash: GAS PRICES FALL BY -54% IN EUROPE

In this article, Alain Freymond and Ahmad Saidali, our Group Chairman and Group CEO, share their views on our views on European gas prices and clean energy stocks.

Opportunity to reposition on alternative energies

European gas prices have fallen by -54% since their peak in August and are now at their lowest level since July. LNG imports into Europe have hit their highest level since 2016 and milder temperatures expected in the coming weeks are supporting the trend. It is also reinforced by an increase in French nuclear power generation and a decrease in demand.

According to the European Commission, gas inventories are now at 90% and the reduction in consumption seems to have already reached 10%.

These developments are rather favorable for the future evolution of electricity prices and inflation in Europe.?However, the current level remains +127% higher than on 31 December 2021.

In this context, Clean Energy stocks in Europe have also fallen by -18% over the same period and are trading just +3% above their end-2021 levels.

Despite this situation, which so far seems to be good news for Europe's energy security this winter, the long-term solutions lie largely in the implementation of a serious energy transition in Europe. The very large investments that will be made over the next few years are bound to be directed toward local European players.

We believe that the recent correction in the sector's stock prices is therefore an excellent medium-term entry point for a winning position in the European alternative energy concept.?