"Patience is a Super Power" - "The Money is in the waiting"
Showing posts with label gas. Show all posts
Showing posts with label gas. Show all posts

Tuesday, June 24, 2025

Did Desjardin just Release the Kraken? - Kraken Robotics Investment and Business Report (June 2025)

 


Company Overview

Name: Kraken Robotics Inc.
Ticker: TSX-V: PNG | OTCQB: KRKNF
Headquarters: Newfoundland & Labrador, Canada
Sector: Maritime Robotics, Defense, and Subsea Infrastructure
Specialties: Synthetic Aperture Sonar (SAS), subsea batteries, underwater drones (KATFISH), LiDAR, seabed mapping systems

Desjardins Recent Financing (June 2025)

In June 2025, Kraken completed a major bought-deal financing of CAD 100 million, underwritten by Desjardins Capital Markets. The deal involved issuing 37.6 million shares at CAD 2.66/share, with an over-allotment option for an additional 15% (~5.6M shares).

  • Total Proceeds: Up to CAD 115M gross (with over-allotment)

  • Use of Proceeds:

    • Expansion of subsea battery manufacturing in Nova Scotia

    • Acceleration of SAS and KATFISH production

    • Expansion into global naval and energy markets

    • Integration of recent acquisition (3D at Depth)

Major Contracts and Revenue Streams

1. Defense/Naval Sector (NATO & Allies)

Kraken is well-positioned to benefit from increased global defense spending, especially among NATO allies. Recent developments include:

  • NATO Navies (Europe & North America):

    • Multi-year, multi-nation contracts in pipeline

    • Successful demos of KATFISH and AquaPix SAS with navies in Canada, U.K., and Norway


    • Legacy contract with an Asia-Pacific navy for $9.5M CAD

  • Canadian Department of National Defence:

    • Standing Offer Agreements in place

    • Active participant in Canadian defense modernization

2. Subsea Energy Sector (North America, Europe, Asia)

  • Battery Contracts:

    • Orders exceeding $11M CAD for SeaPower subsea batteries for UUVs and AUVs

    • Strong backlog through 2026; production scaling in Canada

  • Acoustic Corer Projects:

    • $8M CAD contract for seabed imaging in offshore wind farms


    • Targeting North Sea, U.S. East Coast, and East Asia wind development

3. Commercial Survey and Offshore Wind

  • Sub-bottom Imaging Contracts:

    • $3M CAD in contracts signed in Q2 for seabed survey and UXO detection

    • LiDAR and 3D imaging added via acquisition of 3D at Depth (US$17M deal closed in April 2025)

Global Expansion & Opportunities

North America

  • Canada: Anchor client for defense, with ongoing naval trials and procurement

  • United States: Entry point through 3D at Depth acquisition; U.S. Navy and offshore wind developers are key prospects

Europe

  • U.K. Royal Navy: Target client for KATFISH SAS and subsea batteries


  • Germany/Norway/Netherlands: Interest from NATO-aligned agencies and surveyors

Asia-Pacific

  • South Korea & Japan: Offshore energy and maritime security are priority targets

  • Australia: Collaborations under consideration for AUV integration with Kraken’s battery tech

Strategic Acquisitions

3D at Depth (Closed April 2025)

  • Adds underwater LiDAR and 3D imaging capabilities

  • Expands Kraken’s offering into real-time digital twins and high-res asset inspection

  • Strengthens U.S. presence

Financial Outlook (2025–2026)

  • 2025E Revenue: CAD 65–70 million

  • EBITDA Margin: 18–20% projected

  • Cash Position Post-Financing: CAD 190M+ (incl. Q1 cash + new capital)

  • Dilution: ~20% increase in outstanding shares (now ~225–230M)

Valuation Commentary

  • Intrinsic Value Estimate: ~CAD 1.60/share based on conservative DCF

  • Catalyst-Based Upside: Potential to exceed CAD 3.00–3.50 if NATO/naval contracts close and battery backlog accelerates

  • Stock Price (Post-Deal): CAD 2.66 (anchor price)

Investment Thesis

Kraken Robotics presents a compelling small-cap defense and robotics play, with:

  • Direct exposure to rising defense spending and subsea security needs

  • Proprietary technology (SAS, subsea batteries, LiDAR)




  • Strong capital position post-financing

  • Contracts in place and strong pipeline across NATO, energy, and commercial sectors

Risks: Execution of integration, government contract delays, market dilution

Upside: Accelerated backlog conversion, new contracts (NATO/U.S. Navy), energy transition tailwinds

Verdict: Kraken Robotics is well-capitalized, technologically differentiated, and globally relevant—poised to scale into a key supplier in subsea defense, robotics, and energy infrastructure.

ED Note:

Full disclosure: We are long PNG stock!

Our previous article from January 2025

A shadow war is brewing under the worlds oceans. 

Release "The Kraken"!

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Monday, February 3, 2025

In a heated and escalating trade war with Canada, how would an export tax levied by Canada on all it's natural resources entering the USA affect American business and society

 


Below is a high-level assessment of how a hypothetical 25% or 50% Canadian export tax on all Canadian natural resources—oil, gas, metals, minerals, lumber, agricultural commodities, and even fresh water or hydro power—could affect the U.S. economy. This scenario represents a highly escalated trade conflict that would likely be unprecedented given the integrated nature of North American supply chains and the long-standing Canada-U.S. trade relationship.

1. Immediate Price and Inflation Impacts

  1. Spiking Input Costs

    • U.S. companies reliant on Canadian resources (oil, gas, uranium, metals, potash, etc.) would face significantly higher costs.
    • These cost increases would ripple through numerous industries—energy, manufacturing, construction, and agriculture—ultimately raising consumer prices.

  2. Widespread Inflationary Pressure

    • The U.S. would see broad-based inflation if major raw materials become more expensive or scarce.
    • Higher costs for fuels (gasoline, diesel, jet fuel), metals (steel, aluminum, copper), and agricultural inputs (wheat, potash fertilizer) would feed into nearly every segment of the economy.

  3. Potential “Price Shocks”

    • Resources where Canada is a top supplier (e.g., potash for fertilizer, certain heavy crude oil grades, certain rare earths) could experience short-term shortages in the U.S., causing severe price spikes until alternative sources are found (if feasible).

2. Sector-by-Sector Effects

  1. Energy Sector


    • Oil and Gas:
      • Canada is a leading oil exporter to the U.S., especially heavy crude from Alberta. A 25% or 50% export tax would sharply raise import costs for U.S. refiners.
      • Many refineries, especially along the Gulf Coast and in the Midwest, are optimized for heavier Canadian crude—switching to lighter U.S. shale or other foreign supplies is not straightforward.
      • Natural Gas: Pipeline gas from Canada serves parts of the northern U.S.; higher import costs would raise heating and industrial process costs.
    • Hydroelectric Power:

      • Certain U.S. border states import Canadian hydro power. An export tax would raise electricity costs in those regions.

  2. Metals and Minerals

    Canada's natural resources

    • Canada is a major source of nickel, copper, zinc, aluminum, iron ore, gold, silver, and uranium for the U.S.
    • Canada is the worlds #2 producer of Uranium (nuclear energy) and, Canada has the world's largest deposits of high-grade uranium, with grades of up to 20%, which is 100 times greater than the world average.

    • A steep export tax could disrupt U.S. manufacturing (e.g., cars, aerospace, electronics) and defense (e.g., uranium for nuclear reactors, key metals for military equipment).
    • Prices of consumer products relying on these metals (from cars to electronics) would likely increase.
       



  3. Agriculture and Food

    • Wheat, Meat, Seafood, Maple Syrup, etc.:
      • If these exports faced a 25%–50% tax, U.S. wholesalers and consumers would likely pay significantly more for Canadian wheat, beef, pork, fish, and specialty items (e.g., maple syrup and Lobster).
      • Certain regional markets in the U.S. (e.g., northern states) rely heavily on cross-border supply for fresh or specialty goods (ie: Seafood).

  4. Fertilizer (Potash)

     


    • Canada is the world’s largest producer of potash, a key fertilizer ingredient. A hefty export tax could raise costs for U.S. farmers significantly, impacting crop yields and food prices.

  5. Lumber and Forestry Products


    • Canada is a major exporter of softwood lumber and other wood products.

      A steep export tax drives up construction costs in the U.S., affecting everything from homebuilding to renovation industries.

  6. Fresh Water Exports (in bulk) Canada has 9% of worlds fresh water supply


    • While large-scale bulk water exports are minimal or highly regulated, any new tax on water or hydro resources would raise utility costs in cross-border communities.(Also fracking, as in America's shale operations, requires massive amounts of fresh water)

3. Supply Chain Disruptions and Reconfiguration (USA)

  1. Search for Alternative Suppliers

    • U.S. companies would scramble to find replacement sources—domestically or overseas—for critical inputs (heavy crude, metals, potash, lumber).
    • This process can be time-consuming and may come with higher transportation/logistics costs.

  2. Retooling and Capital Investment

    • Refiners configured for heavy Canadian crude might face expensive refitting to process lighter oil or other blends from countries like Venezuela, Saudi Arabia, or Mexico (all with their own geopolitical or supply constraints).
    • Manufacturers dependent on Canadian metals (like nickel or aluminum) might shift supply chains to other countries, though quality, reliability, and shipping costs vary.

  3. Trade and Policy Uncertainty

    • The fear of future escalations or shifting tariffs can freeze investment decisions, delaying expansion or hiring in affected sectors.
    • Multinational companies operating on both sides of the border might re-evaluate where to locate production facilities.

4. Impact on U.S. Consumers and Businesses

  1. Immediate Cost Pass-Through

    • Companies facing a sudden 25%–50% cost increase on Canadian resources will pass as much of that cost as possible onto consumers—leading to higher prices for energy, groceries, goods, and services.

  2. Potential Job Losses

    • While some U.S. resource producers might enjoy a temporary competitive edge, many businesses reliant on Canadian inputs could see profit margins squeezed or lose competitiveness (especially if they export finished goods to other markets).
    • Supply chain disruptions often lead to factory slowdowns, reduced output, and in some cases layoffs.

  3. Inflationary Pressure and Reduced Purchasing Power


    • As prices rise, American households and businesses have less disposable income to spend on non-essential goods, possibly slowing overall economic growth.

5. Geopolitical and Long-Term Consequences

  1. Severe Strain on Bilateral Relations

    • A blanket 25%–50% export tax on all Canadian resources is an extreme measure that signals a deep breakdown in trade relations. The resulting tension could spill over into defense, security, and diplomatic realms.

  2. Undermining USMCA (Formerly NAFTA)


    • This move would eviscerate the spirit of the U.S.-Mexico-Canada Agreement and likely prompt complex legal battles.
    • Retaliation and counter-retaliation could spiral, damaging the integrated North American economy.

  3. Acceleration of Resource Self-Sufficiency or Alternate Sourcing

    • Over the long term, the U.S. might invest more heavily in domestic mining, energy production, or forging new trade deals with other countries.
    • Canada’s potential leverage is highest in the short to medium term, before U.S. producers scale up or alternative suppliers emerge.

Conclusion

A 25%–50% export tax on all Canadian natural resources would pose a significant economic shock to the United States:

  • Energy and industrial supply chains would face immediate cost inflation, especially for heavy crude, metals, potash, and lumber.
  • Consumers and businesses would encounter higher prices on everything from fuel and electricity to cars and groceries, fueling inflation.
  • Supply chain disruption would be severe, compelling U.S. companies to retool or seek alternative suppliers, processes that are costly and time-consuming.
  • The overall U.S. economy could face slower growth, job losses in industries reliant on Canadian inputs, and a potential inflationary spiral if retaliation escalates.

In short, while a few domestic resource producers in the U.S. might see short-term gains, the vast majority of the U.S. economy would feel pain from such a sweeping Canadian export tax—a drastic measure that signals a major breakdown in the traditionally cooperative Canada-U.S. trade relationship.

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Thursday, October 3, 2024

Quantinuum is pushing the limits of trapped ion technology! Currently a private company, 54% is owned by business powerhouse, Honeywell!

 


Honeywell International Inc. is a diversified technology and manufacturing company that operates across several key business segments. Here is an overview of their primary businesses and insights into their performance:

1. Aerospace

Overview:

  • Products and Services: Honeywell Aerospace provides a wide range of products for aircraft manufacturers, airlines, business and general aviation, military, space, and airport operations. This includes aircraft engines, avionics, flight safety systems, propulsion engines, auxiliary power units, and maintenance services.
  • Industries Served: Commercial aviation, defense and space, business aviation, and general aviation.

Performance:

  • Strong Contributor: The Aerospace segment has historically been one of Honeywell's largest and most profitable divisions.
  • Market Position: Benefiting from a strong market position in both commercial and defense sectors.
  • Growth Drivers: Recovery in air travel demand, advancements in avionics technology, and increased defense spending have positively impacted this segment.

2. Honeywell Building Technologies (HBT)

Overview:

  • Products and Services: HBT offers building management systems, fire safety and security products, energy management solutions, and building controls.
  • Industries Served: Commercial buildings, hospitality, healthcare facilities, educational institutions, and government buildings.

Performance:

  • Steady Growth: Driven by the global emphasis on energy efficiency, smart buildings, and security solutions.
  • Innovations: Introduction of connected and smart building technologies has bolstered the segment's offerings.

3. Performance Materials and Technologies (PMT)

Overview:

  • Products and Services: PMT develops advanced materials, process technologies, automation solutions, and industrial software. This includes specialty chemicals, electronic materials, refining technologies, and gas processing equipment.
  • Sub-Divisions:
    • Honeywell UOP: Provides technology, catalysts, adsorbents, and equipment for the petroleum refining, petrochemical, and gas processing industries.
    • Honeywell Process Solutions: Offers automation control systems and services for industries like oil and gas, chemicals, and mining.
    • Advanced Materials: Produces high-performance materials like fluorocarbons, specialty films, additives, and fibers.

Performance:

  • Robust Segment: PMT has been a strong performer due to consistent demand in the energy, petrochemical, and specialty chemical markets.
  • Growth Factors: Global industrialization, need for efficient processing technologies, and demand for advanced materials have supported growth.

4. Safety and Productivity Solutions (SPS)

Overview:

  • Products and Services: SPS provides personal protective equipment (PPE), gas detection technology, sensors, advanced automation and software solutions, and productivity tools.
  • Industries Served: Manufacturing, logistics, retail, healthcare, and construction.

Performance:

  • Increased Demand: The global focus on workplace safety and automation has driven demand for SPS products.
  • Technological Advancements: Investment in connected devices and software solutions has enhanced the segment's market position.

Best Performing Segments

  • Aerospace and Performance Materials and Technologies (PMT) have traditionally been among Honeywell's top-performing divisions.
  • Aerospace:
    • Revenue Contribution: Significant portion of Honeywell's total revenue.
    • Profitability: High margins due to advanced technology offerings and service contracts.
    • Market Dynamics: Recovery in commercial aviation post-pandemic and sustained defense spending have bolstered performance.
  • Performance Materials and Technologies:
    • Revenue Growth: Steady growth driven by global industrial demand.
    • Innovation: Investment in new technologies and materials has opened up new markets and applications.
    • Strategic Importance: Plays a critical role in industries like energy, where efficiency and advanced materials are key.

Note:

  • Variability: The performance of each segment can fluctuate based on economic conditions, industry trends, and global events.
  • Latest Data: For the most current and detailed financial performance, it's advisable to consult Honeywell's latest annual reports, quarterly earnings releases, and official statements.
  • Strategic Initiatives: Honeywell continues to invest in emerging technologies such as quantum computing (through Quantinuum), sustainability solutions, and digital transformation to drive future growth across all segments.

Related Articles:

Quantum computing leaders, IBM and IONQ have approached QCtech from two different methods, superconduction (IBM) and ION trap technology (IONQ)! Here is a comparison of the two!



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