Coal

Americans indulge green at home, black abroad

31 Mar 2023

U.S. renewable power generation surpassed coal for the first time in 2022. But companies like Peabody Energy and Consol Energy are benefitting from exporting their dirty power source. Cleaning up the country's act, while exporting more filthy fuel, wastes part of this effort.

Capital Calls: World Bank, Bumble, Wood Group

23 Feb 2023

Concise views on global finance: The U.S. picks ex-Mastercard boss Ajay Banga to run the multilateral development bank; while the dating app’s shares are down, private equity owner Blackstone is still in the money; the UK oil services group has turned down three bids from Apollo.

Energy transition’s $12 bln deal becomes forex bet

22 Feb 2023

Brookfield and MidOcean have reduced their offer for Australia’s coal and gas-heavy Origin Energy, but only by 1%. Large investors also will be paid partly in U.S. dollars. If exchange rates move only slightly, it would more than compensate them for the price cut.

Glencore’s coal fudge risks satisfying no one

15 Feb 2023

The dirty fuel is booming, and made up half of the $80 bln commodity giant’s 2022 EBITDA. Green investors may want CEO Gary Nagle to phase it out faster, while financially motivated ones would favour more mining. He’s doing neither, and paying the price with a middling valuation.

Anti-ESG movement has investment case

12 Dec 2022

American coal firms are generating so much cash that at current rates, it equals their market value, including debt, in under two years. Oil firms like Exxon could earn back their value in five. Even if recession squeezes profit and decarbonization looms, valuations are too low.

Aussie energy woes put miners in windfall hole

5 Dec 2022

Canberra may cap the soaring price of coal or tax profits to reduce electricity costs. That’s a potentially explosive new risk for producers like Whitehaven, which is buying back up to a third of its stock at near record highs. Such short-term largesse could come back to burn.

Don’t dump on U.S. coal plan. Make it better!

11 Nov 2022

Sceptics fear an American plan to use voluntary carbon markets to accelerate the energy transition in poor countries, unveiled at COP27, could amount to greenwashing. But done properly, it could help developing markets close down coal plants, a major source of pollution.

Capital Calls: Coal’s fear-then-greed trade

19 Oct 2022

Concise views on global finance: Shares of Aussie coal miners fell on production disruptions from floods, only to quickly rise as investors bet on tighter supplies and higher prices.

Ukraine has more pluses than minuses for climate

26 Sep 2022

The Russian invasion has prompted other countries to boost gas production and burn more coal. Climate diplomacy is on ice. But this crisis will also prompt a dash for cheaper and more secure renewable energy. That helps the fight to slow global warming, says Hugo Dixon.

Capital Calls: T-Mobile US transmits clear signal

9 Sep 2022

Concise views on global finance: The telecom carrier is planning a $14 bln buyback program as it beats rivals in shareholder return.

Singapore deal offers template for offloading coal

6 Sep 2022

Banks’ aversion to fossil fuels makes it hard for companies to sell dirty assets. So Temasek-backed Sembcorp is financing its own $1.5 bln Indian disposal with an interest rate that falls if emissions do and guaranteeing loans. It’s a more responsible way to get the job done.

ESG is more of a muddle than a fiddle

19 Jul 2022

Environmental, social and governance investing is under the spotlight. In this episode of The Exchange podcast, Bridgewater’s sustainable finance gurus Karen Karniol-Tambour and Carsten Stendevad explain how ESG’s main problem is a lack of clarity over its goals.

Capital Calls: China and Australian coal

7 Jun 2022

Concise views on global finance: Chinese coal miner Yankuang Energy may have to increase its offer to Yancoal Australia’s minority shareholders.

Glencore rebuff sets up less noxious coal deal

2 Jun 2022

The trader calls a Chinese offer for the 38% of Aussie miner Yancoal it doesn’t own “unacceptable”. That’s an understatement. It’s a deeply discounted deal offering payment via a convertible bond. Political risk looms large too, but Yankuang has to make the financials less toxic.

Ukraine war helps China’s coal addiction stack up

2 Jun 2022

President Xi Jinping’s administration is boosting coal production to stave off power cuts. The top emitter is embracing the fossil fuel tightly as wealthy nations bid aggressively to replace Moscow’s natural gas supplies. The rational financial choice is a firm blow to net zero.

Stability and security trump threat of sanctions

30 May 2022

India is buying more Russian oil and coal, and a state-led group of companies is now eyeing Shell’s stake in an LNG project. Price volatility and climate woes are dictating national priorities. It’ll be thorny for the West to punish poorer countries for putting themselves first.

Capital Calls: Airbnb, Prudential, Glencore

25 May 2022

Concise views on global finance: The $68 bln vacation-booking platform will shut its Chinese business; the insurer appoints a new CEO – finally; the commodities giant has a $10 bln reason to keep its nose clean, after a $1.5 bln settlement for corruption allegations.

India’s energy-storage fix has virtue of speed

18 May 2022

As the West obsesses over building the perfect battery, Singapore- and Abu Dhabi-backed Greenko is launching the largest long-lasting renewable power-storage project. It’s a low-tech leap towards a greener energy system. Big customers like ArcelorMittal are lined up too.

Capital Calls: Amazon and consumers

29 Apr 2022

Concise views on global finance: People are spending more amid price hikes, while the e-commerce giant struggles with them.

Capital Calls: Snowflake’s no snowflake

3 Mar 2022

Concise views on global finance: The data warehouse firm doubled revenue, but the stock was whacked. Snowflake’s solid finances mean missteps are valuation conundrums, not existential threats.