Standard Profil - comment

VW have warned that global auto production will be at risk in FY23 if Russia fails to resume deliveries of natural gas through Nord Stream 1. This is unsettling headlines for investors in Standard Profil who are relying on increasing global production to improve cashflow and leverage stats. Although gas futures across Europe have recently hit two-month lows, the picture for FY23 is more unsettling for European investors. Some European companies are examining the potential to move operations to the US for lower energy prices, most notably in the steel industry. Any movement would not be over night, but should be acknowledged likely to be only one-way. All of this will call into question the stomach European leaders will have for increased embargoes against Russian energy.