6Mes·

Who can also benefit indirectly from a high oil price?

Hello my dears,

Today I'm once again talking about my new investment.

What does a high oil price mean for CECO?

A high oil price usually triggers CAPEX cycles in the entire energy and petrochemical industry. And that's exactly where CECO sits with its solutions for:

Air pollution control
emission control
Water/wastewater management
process filtration
Plant modernization

CECO is not an oil producer, but a equipment supplierthat earns when oil & gas companies invest.

📈 Positive effects of a high oil price for CECO

1. more investment in upstream & midstream

High oil prices → higher cash flows for producers → more investment in plants.
New or modernized plants need Filtration, emission control, water treatment → CECO core products.

2. the Middle East as a growth driver

The Gulf states are investing heavily in high oil prices:

Refineries
gas processing
petrochemicals
water infrastructure

CECO is already active there - that is a real lever.

3. stricter environmental regulations

High oil prices give governments and companies financial leeway to:

Tighten emissions standards
Modernize exhaust gas and water purification

CECO benefits structurally from regulation.

🧭 Conclusion: High oil prices are more of a tailwind than a risk for CECO

CECO is a classic infrastructure and compliance profiteer. When oil is expensive, the big players invest - and CECO supplies the technology they need.

🌍 1. where CECO docks in the first place

CECO supplies technology for:

Air pollution control
Emission control
Water and wastewater treatment
Process filtration
Modernization of industrial and energy plants

CECO is active in the Middle East through several brands - especially where oil & gas plants are being modernized or expanded.

📈 2. Possible positive effects (from a purely economic perspective)

A) Reconstruction of destroyed facilities

If infrastructure in the oil & gas sector is damaged, large projects for

repair
modernization
replacement facilities
Environmental and water technology

CECO supplies exactly the systems that are needed for such projects.

B) Stricter environmental regulations following accidents/damage

After major incidents, emission standards are often

Emission standards tightened
Water and exhaust gas purification modernized

This plays into CECO's hands.

C) Shifting investments

When a country becomes unsafe, neighboring countries invest more in:

Refineries
gas processing
petrochemicals
water infrastructure

CECO is already present in these markets.

🧭 Conclusion: CECO is not profiting from the war - but from reconstruction

When infrastructure is destroyed, there is later demand for

modern, clean, efficient technology
Water and waste gas solutions
process filtration
Plant modernization

This is CECO's playing field. But the road ahead is full of risks, delays and geopolitical uncertainties.

My dears,

nevertheless, of course I hope that the war will end soon. And that no more infrastructure is destroyed.

Because CECO $CECO (+1,9%) is only a small part of my portfolio.

What do you think about CECO and my thesis.

7 Commenti

Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

6Mes

My dear fellow, if there is a high oil price and exports are massively restricted, where are the additional revenues for the countries you mentioned supposed to come from? Tourism in the region is probably also difficult at the moment. I wouldn't bet on massive CapEx cycles from the Arabian Peninsula here.🤷🏼‍♂️

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Tenbagger-Capital@Tenbagger-Capital

6Mes

@Get_Rich_or_Die_Tryin I think the air for 🍊 is getting thinner and thinner, and the pressure to end the war is probably increasing. But if even more facilities are destroyed, as they already have been. The aim is to rebuild these plants as quickly as possible. To earn money and to be able to deliver again. Ceco should be able to profit from this in the long term. In the short term, you should be right. While the bombs continue to fall, modanization and reconstruction are out of the question. Ceco's orders may even have been put on hold for the time being. But after the war you should be able to profit. But this seems to be slowly becoming a battle between the two of us. 😂🙈

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

6Mes

@Tenbagger2024 No battle, just healthy skepticism from my side.

I also see the air getting thinner, the question will be: what happens and when? At the moment, I find it almost impossible to predict who will cave in first. My current guess is that it won't be Iran, because they simply have nothing to lose.🤷🏼‍♂️

The outcome is completely open at the moment, but I also see Trump under increasing pressure on the whole issue. But as we know, he's always good for a surprise.😂

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BartS@Weissach

6Mes

@Get_Rich_or_Die_Tryin share this view👍

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Tenbagger-Capital@Tenbagger-Capital

6Mes

@Get_Rich_or_Die_Tryin The stock market always prices in the future. And at the moment it's also about averting a global economic crisis. I also believe that if there was a plan at all, it was certainly not to trigger an economic crisis. That's why the new plan should now be to avert it by any means necessary. And that includes rebuilding destroyed facilities and infrastructure. That's why I'm thinking long-term and considering who could benefit. And since a large part of this is about oil and gas, I have opted for ceco. Even if you disagree with me here

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Dividendenopi👴@Dividendenopi

6Mes

@Tenbagger2024 The economic crisis will come and there is not much left to avert, although the word "crisis" is used too inflationary for my liking, with stagnation at best and a moderate downturn to be expected. Regardless of when the conflict ends, the economic damage and loss of confidence so far are already enough to stifle any growth opportunities in Germany and some European countries, in my opinion. After all, everything was on credit and on edge anyway and the environment was already not good beforehand. Interest rate hikes this year cannot be ruled out. None of these are prerequisites for a profitable environment. And if the matter with Iran could be settled in any way, then reality will catch up with Donnie at home. Shadow banks, possibly also rising interest rates, difficult financing of government debt, the issue of tariffs is not out of the question either. What about the Russians, what about Ukraine? You won't hear anything more. He also wanted to meet with the Chinese for deals. I wouldn't want to be in his shoes - and of course not even when everything is going brilliantly. 😂😉

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Tenbagger-Capital@Tenbagger-Capital

6Mes

@Dividendenopi and the Epstein files are also still on the table

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