Jan
25
A Sign of the Times to Come
January 25, 2008 | 1 Comment
On Wednesday PFC Energy released their latest list of 50 top capitalized “energy companies.” For the first time a non petroleum company made the list. And not just barely either, Iberdrola came in at number 36 ahead of such notables as Halliburton, Hess (Formerly known as Amereda Hess), and Anadarko. Remarkable. Astonishing. Very pleasing.
Before everyone jumps to joy, keep in mind the list is formed by the market capitalization or the value of the stocks held by investors, not the sales numbers. It’s a measure of the confidence and expectations of the investment community about the prospects of wind turbines, Iberdrola’s main source of sales, to continue to grow and profit. In fact, the investors are at least partially right and only wrong in a degree. Wind power is here and it will stay. Thus, one alternative is cast in the new foundation of powering the modern economy.
Another doubling in the stock price would put Iberdrola in the top twenty. Another idea that I hope gets on the PFC site is their claimed list of the top 15 alternative energy companies. PFC notes in the link “Alternative Energy Company Joins PFC Energy 50” that those 15 companies achieved an average 145% share price increase and commanded an average 74 multiple. This compares to a 15 multiple for the PFC Energy 50 as a whole.
Peering closely at the list offers up the obvious missing national companies such as Saudi Arabia’s Aramco, and other closed national firms that are really arms of governments. Some companies on the list are “traded” in places where one has a serious gut check before buying the stock. More interesting is that some NOC or National Oil Companies are plainly listed as well as the IOC or Independent Oil Companies. Other company types include R&M or refining and marketing, and E&P or exploration and production.
So who are these guys at PFC Energy? Founded by J. Robinson West, an attorney graduated from Temple University he’s managed to be placed on boards, as a trustee, served on panels, committees and been employed as an investment banker. The direct government work includes Deputy Assistant Secretary of Defense for International Economic Affairs, and as Assistant Secretary of the Interior for Policy, Budget and Administration. Definitely a Washington D.C. insider. Mr. West has attracted some interesting people.
Vahan Zanoyan is the Chairman and CEO and it looks as though Mr. Zanoyan has been the operations man from nearly the beginning. Before joining PFC Mr. Zanoyan was Managing Director at Wharton Econometric Forecasting Associates. With a long list of experience in the U.S. and the Middle East, Far East and Latin America, he likely has a Rolodex filled with the contacts that matter worldwide.
With over 100 people in house, PFC Energy offers governments and private industry such services as “Country Strategy” and “Corporate Advisory” and so forth with a long list of subdivided specialties. With 20 years of experience, they must know how to get the facts across in a digestible manner to their paying clients. Their facts might be better than anyone’s and likely some of the most useful in making decisions.
Which brings us to the question, why are they offering this list to the public on their Internet site and promoting the press to pass the link around?
It’s a strategy, of course. Things are changing and their customers will be looking out for their interests. You might note that these folks are consultants to the governments and corporations, not the economy at large or the consuming public. They know better than anyone just how significant it is when an alternative power provider cracks the top fifty capitalized firms worldwide, and know how to sell the anticipated responses. Are they friends of the average Joe? Average Joe needs to gut check, these folks get paid by the wolves and the shepherds, not by consumers.
Which makes Iberdrola’s accomplishment all the more worthy to regular people. The other 49 members on the list instantly recognize that now one and 14 more companies threaten their list position and that means their cash flow, stock price and market share are at risk too.
I’m sure PFC Energy has some other tidbits to offer that would incite a lot more consulting business. Maybe we’ll see if they are “of us” or “apart from us.”
I’d like to pass along my thanks to PFC Energy for compiling the data, forming up the list and getting the word out that its done and available to everyone. Send along that Top 15 Alternative Energy Companies link when you’re ready.
One alternate power generation company now, more alternate choices to come.
Comments
1 Comment so far
Feedburner
Reddit
Stumbleupon
Wow this is clever, looks a bit complex but is very interesting, keep up the good work!
cheers, adam