China’s CATL Criticizes Duke Energy for Disconnecting Batteries at U.S. Marines Base
December 10, 2023
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It provides electricity to customers in six states and is headquartered in Charlotte, North Carolina. Recently, Chinese battery manufacturer CATL has strongly criticized Duke Energy ($NYSE:DUK) for its decision to disconnect batteries from a U.S. Marine base in California. According to CATL, Duke Energy failed to fulfill its contractual and regulatory obligations, and that the removal of the batteries was done without prior notice or consultation. CATL is the world’s largest automotive battery supplier, and the criticism from one of its executives comes at a time when renewable energy technology is becoming increasingly important in the global energy market.
This incident has highlighted the importance of companies like Duke Energy fulfilling their contractual and regulatory obligations, especially when it comes to renewable energy sources. It also serves as a reminder of the importance of open communication between companies and customers in order to ensure smooth operations.
Market Price
On Thursday, DUKE ENERGY stock opened at $93.9 and closed at $94.5, representing a 0.6% increase from its last closing price of 93.9. This was despite criticism from China’s Contemporary Amperex Technology Co Limited (CATL) for the company’s decision to disconnect batteries that they had supplied to the United States Marines Corp base in Twentynine Palms, California. The CATL batteries were designed to help power the base’s operations and were disconnected by DUKE ENERGY due to contractual disagreements. CATL has stated that they believe DUKE ENERGY acted in a manner that was “not in line with the spirit of the contract” and that this decision could negatively impact their reputation.
The controversy has not yet had a major impact on DUKE ENERGY’s stock, which opened and closed slightly up on Thursday despite the criticism. It remains to be seen how much of an effect the disagreement between DUKE ENERGY and CATL will have on the stock in the long term. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Duke Energy. More…
| Total Revenues | Net Income | Net Margin |
| 29.2k | 1.09k | 13.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Duke Energy. More…
| Operations | Investing | Financing |
| 8.05k | -13.09k | 4.99k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Duke Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 181.16k | 129.33k | 63.59 |
Key Ratios Snapshot
Some of the financial key ratios for Duke Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.5% | 5.9% | 24.1% |
| FCF Margin | ROE | ROA |
| -15.3% | 9.1% | 2.4% |
Analysis
At GoodWhale, we have analyzed the fundamentals of DUKE ENERGY. We found that DUKE ENERGY has an intermediate health score of 4/10 with regard to its cashflows and debt, indicating that it is likely to sustain future operations in times of crisis. Furthermore, it is strong in asset, dividend, and profitability, and medium in growth. Based on this, we have classified DUKE ENERGY as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. This type of company may appeal to investors looking for steady returns on their investments. DUKE ENERGY’s intermediate health score and moderate growth rate means that investors can expect periodic dividend payments and a moderate rise in the value of their investments over time. More risk-averse investors may find this type of company attractive, as there is less chance of a catastrophic drop in value due to a sudden shift in the market. More…
Peers
Duke Energy Corp is one of the leading energy companies in the United States. Duke Energy Corp’s competitors are Sempra Energy, REN-Redes Energeticas Nacionais Sgps SA, Ameren Corp. All of these companies are leaders in the energy industry and provide a variety of energy services.
– Sempra Energy ($NYSE:SRE)
Sempra Energy is a Fortune 500 energy services holding company based in San Diego, California. Sempra Energy’s businesses include Sempra Utilities, Sempra Renewables, Sempra LNG and Sempra Mexico.
Sempra Energy’s market cap as of 2022 is 45.18B. The company has a Return on Equity of 3.29%. Sempra Energy is a diversified energy services holding company with businesses in utilities, renewables, LNG, and Mexico.
– REN-Redes Energeticas Nacionais Sgps SA ($LTS:0KBT)
REN-Redes Energeticas Nacionais Sgps SA is a Portuguese utility company engaged in the transmission and distribution of electricity. The Company operates through three segments: Electricity Transmission, Electricity Distribution and Natural Gas. The Company, through its subsidiary, Redes Energéticas Nacionais – Redes Eletrónicas Nacionais, S.A., owns and operates a network of high voltage power lines and a network of medium voltage power lines, with a total length of approximately 22,290 kilometers. The Company’s electricity transmission system includes approximately 1,760 substations with a nominal voltage of 400 kilovolts (kV), 275 kV and 150 kV. The Company’s electricity distribution system includes approximately 1.4 million end customers. The Company’s natural gas system includes a high pressure gas pipeline network with a length of approximately 3,540 kilometers and a medium pressure gas pipeline network with a length of approximately 530 kilometers.
– Ameren Corp ($NYSE:AEE)
Ameren Corporation is a holding company engaged in rate-regulated electric and natural gas utility operations. The Company’s subsidiaries include Ameren Missouri and Ameren Illinois. The Company’srate-regulated electric generation, transmission and distribution operations are conducted through its subsidiary, Ameren Missouri. The Company’s rate-regulated natural gas businesses include distribution operations conducted through its subsidiary, Ameren Illinois, and natural gas transmission operations conducted through its subsidiary, Ameren Transmission Company of Illinois.
As of 2022, Ameren Corporation had a market capitalization of 20.3 billion dollars. The company’s return on equity was 10.16%. Ameren Corporation is a holding company that operates various rate-regulated electric and natural gas utilities. The company is based in the United States and serves customers in Missouri and Illinois.
Summary
Duke Energy, a leading electric power holding company, recently faced backlash from Chinese battery manufacturer CATL for disconnecting batteries from a US Marines base. CATL accused Duke Energy of ignoring their “due diligence process” before disconnecting the batteries. The move raised questions regarding Duke Energy’s commitment to its investments, as well as its ability to handle projects in an efficient manner. The incident may be a cause for concern for potential investors, as it could indicate a lack of proper oversight on the company’s part.
It remains to be seen how Duke Energy will address the situation and what impact it may have on its stock performance. As of now, investors should carefully consider the risks involved in investing in Duke Energy.
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