DGL - DGL Group

[sb9]

Courtesy of poster on HC y'day...

"AFR today (wonder if the price of the remaining stock will increase?):
Australia’s diesel engines could be crippled in six weeks

"Australia’s diesel-powered trucks can’t operate without an additive called AdBlue. Simon Henry’s company supplies 60 per cent of the market. He will run out in six weeks."

Simon Henry said DGL had about six weeks’ stock left in its warehouses, but demand had risen so sharply that the group had about 1000 unfilled orders on its books as trucking companies and other customers scrambled for supplies.

[newbieinvestor]

I'm in for long haul, might top up if price gets down to silly levels.

I'm also in for the long haul, I hope I am proved wrong and the prices rise over the summer!!

As mentioned Aussies seem to like them very much as evidenced by volume pattern on ASX.

Yes, yesterday the trading was very low trading on the NZX and rose towards the end on both NZX & ASX and I was wondering what was up ...

Courtesy of poster on HC y'day...

"AFR today (wonder if the price of the remaining stock will increase?):
Australia’s diesel engines could be crippled in six weeks

"Australia’s diesel-powered trucks can’t operate without an additive called AdBlue. Simon Henry’s company supplies 60 per cent of the market. He will run out in six weeks."

Simon Henry said DGL had about six weeks’ stock left in its warehouses, but demand had risen so sharply that the group had about 1000 unfilled orders on its books as trucking companies and other customers scrambled for supplies.

"The price of AdBlue had also been rising sharply as shortages emerged."

Interesting article. Thanks for that!! . The price rise of AdBlue stock should help DGL stock rise a bit
Good that Simon picked up AusBlue when he did and I suspect Simon will somehow capitalize on this 'opportunity' in the midst of adversity...

[newbieinvestor]

Courtesy of poster on HC y'day...

"AFR today (wonder if the price of the remaining stock will increase?):
Australia’s diesel engines could be crippled in six weeks

"Australia’s diesel-powered trucks can’t operate without an additive called AdBlue. Simon Henry’s company supplies 60 per cent of the market. He will run out in six weeks."

Simon Henry said DGL had about six weeks’ stock left in its warehouses, but demand had risen so sharply that the group had about 1000 unfilled orders on its books as trucking companies and other customers scrambled for supplies.

DGL stock prices on an uptrend today on both ASX & NZX, given the Adblue shortage and the media coverage of the impact....

[sb9]

DGL stock prices on an uptrend today on both ASX & NZX, given the Adblue shortage and the media coverage of the impact....

I like the CEO Simon even more now... next stop $3+...

[newbieinvestor]

I like the CEO Simon even more now... next stop $3+...

Seems AdBlue supplies in Australia at some service stations are being rationed to 50 Litres.
https://www.farmonline.com.au/story/...vice-stations/

Aus govt seem to be planning to get some supply from Indonesia and urea supply from Middle East..
https://www.abc.net.au/news/2021-12-...lies/100695094

There seemed to be accumulation of DGL at $2.67-$2.70 on the ASX today ...

[newbieinvestor]

I like the CEO Simon even more now... next stop $3+...

Simon Henry, the chief executive of DGL Group, which makes about 60 per cent of Australia’s AdBlue from a plant in Queensland, said a global bidding war had begun for the limited stocks of high-grade urea being sought after by manufacturers in many countries. “We’re effectively in a bidding war on an hourly basis,” Mr Henry said.He said his company was working on all options to increase supply, and investigating flying stock in via cargo planes, with shipping lanes extremely slow because of the global supply chain disruption which had hit many industries.

Autobarn and Autopro stores expect AdBlue to sell out in the next week.
https://www.afr.com/companies/manufa...0211213-p59h3j

[newbieinvestor]

I like the CEO Simon even more now... next stop $3+...

Australia's largest AdBlue manufacturer, AUSblue, says it is racing to secure urea supply or even formulated AdBlue from overseas in a bid to keep the haulage industry moving through the summer.

Simon Henry, the chief executive of AUSblue's parent company DGL Group, told the ABC the company had heavy-lift charter planes standing by to bring in 250 tonnes of urea each per flight from the Middle East and Asia.

"We worked all through the weekend up to midnight, we have pulled out all stops to get dribs and drabs of material out of plants around the world. We are having some success," Mr Henry said. "We have got various air charter companies on stand-by if we need to to fly in urea."We've also got some producers overseas that will probably supply us with some formulated AdBlue. It is significantly more expensive but critical, it will keep things moving through the summer."

Already, the prices for AdBlue have quadrupled in parts of the country, prompting the Australian Competition and Consumer Commission (ACCC) to investigate "whether an authorisation is needed to allow diesel exhaust fluid producers to share information".Mr Henry said although AdBlue was not a dangerous chemical, maintenance work at multiple urea plants, COVID-related shipping constraints, and rising diesel consumption had created a "perfect storm" for a shortage to occur.

https://www.abc.net.au/news/2021-12-...isis/100699832

[sb9]

Australia's largest AdBlue manufacturer, AUSblue, says it is racing to secure urea supply or even formulated AdBlue from overseas in a bid to keep the haulage industry moving through the summer.

Simon Henry, the chief executive of AUSblue's parent company DGL Group, told the ABC the company had heavy-lift charter planes standing by to bring in 250 tonnes of urea each per flight from the Middle East and Asia.

"We worked all through the weekend up to midnight, we have pulled out all stops to get dribs and drabs of material out of plants around the world. We are having some success," Mr Henry said. "We have got various air charter companies on stand-by if we need to to fly in urea."We've also got some producers overseas that will probably supply us with some formulated AdBlue. It is significantly more expensive but critical, it will keep things moving through the summer."

Already, the prices for AdBlue have quadrupled in parts of the country, prompting the Australian Competition and Consumer Commission (ACCC) to investigate "whether an authorisation is needed to allow diesel exhaust fluid producers to share information".Mr Henry said although AdBlue was not a dangerous chemical, maintenance work at multiple urea plants, COVID-related shipping constraints, and rising diesel consumption had created a "perfect storm" for a shortage to occur.

https://www.abc.net.au/news/2021-12-...isis/100699832

Oh my, thanks for the link nbi.

Early bids on ASX show an indicative open of AU 2.80.

[sb9]

I like the CEO Simon even more now... next stop $3+...

Here we are...$3

[newbieinvestor]

Here we are...$3

Indeed...Indeed... $3

I am selling off my holdings and exiting my positions in DGL for now.. there might be more news driven upside, but it has run up quite a bit from $2.5 and will pick it up later on dips next year if I can...

Happy Holidays sb9!! Hope to meet you again on the board of another winner stock